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Common Clauses

Reading an offer as a seller: which conditions are routine, which are risk, and what to counter.

4 min read · Guide

Two offers at the same price are frequently worth very different amounts. The difference is in the conditions, the dates, and the deposit.

Reading the conditions

Routine

Financing and inspection conditions, typically 3–5 business days. Normal, expected, and a well-qualified buyer clears them without drama. A status certificate condition on a condo is equally routine.

Worth scrutiny

A condition on the sale of the buyer's own property. It can be months, and it makes your sale contingent on a transaction you can't see. If you accept one, an escape clause letting you continue marketing is essential.

The other terms that matter

01

Deposit size and timing. Larger and sooner is better. It's the clearest available measure of how serious a buyer is.

02

Closing date. Match it to your own next move. A buyer flexible on closing is worth money if you're buying too.

03

Irrevocable date. How long you have to respond. Short irrevocables are a pressure tactic. You can counter with a longer one.

04

Chattels and fixtures. Check what they've asked for. Buyers routinely request items you intended to take.

05

Requested repairs or holdbacks. Read these closely; an open-ended repair obligation is a blank cheque.

Four clauses worth knowing by name

The escape clause

Where you accept an offer conditional on the buyer selling their own home, an escape clause lets you keep the property on the market. If a second, better offer arrives, the first buyer gets a short window, commonly twenty-four to seventy-two hours, to remove their condition or step aside.

Never accept a condition on the sale of a buyer's property without one. It is the difference between a deal and an option somebody else holds over your house for two months.

Time is of the essence

A standard clause, and a sharper one than it looks. It means every date in the agreement is a hard deadline rather than a target. A condition due at 5pm Friday that is waived at 5:15 has not been waived.

Which is why every condition needs a date attached, and why those dates have to be realistic when the offer is written. Five business days for financing across a long weekend is not five business days. Have the dates checked against a calendar before you sign rather than afterwards.

As-is, where-is

The buyer takes the property in its current condition, with no warranty from you as to its state. Common on estate sales, power of sale, and properties selling for land value.

Financial safeguards

The clauses that protect the money rather than the property. The deposit held in the listing brokerage's trust account rather than anywhere else. Deposit due on acceptance rather than at some later date. Where relevant, a holdback for work not finished by closing, and clear wording on who pays what if the closing date moves.

These are the least glamorous lines in the agreement and the ones that decide what actually happens when something goes wrong. See How Deposits Work.

On bully offers

A pre-emptive offer before your review date is a compliment and a tactic at the same time. It's usually strong, and it's designed to stop you finding out whether it was the strongest. Whether to look at one depends entirely on how much interest you already have. That's a same-day conversation, and it's one of the moments where having someone experienced on the phone genuinely earns the commission.

Not sure where to start? Fifteen minutes on the phone will tell you.

Call or text (647) 448-4857

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