Picture this: You've decided it's time. It's time to say goodbye to the house you've called home, the house that has seen countless memories, heartwarming holidays, and quiet mornings sipping coffee. The 'For Sale' sign goes up, and almost immediately, a flurry of prospective buyers come knocking. It's an exhilarating, yet daunting, moment - the market is clearly ready for your home, but are you ready for what comes next?

Suddenly, you're not just a seller but also a prospective buyer, a participant in the dance of the real estate market. You find yourself staying up late, scrolling through countless listings, wondering which one could be your next home. There's an undeniable fear there - what if you can't find the perfect home before your current one sells? Will you have to settle for something less than ideal, or worse, face the prospect of temporary housing?

And then, there's the other side of the coin. What if you find your dream home but your old house hasn't sold yet? The dread of missing out on the perfect place due to a sales timeline that's out of your control is a real fear. The balancing act between selling the old and securing the new becomes a constant juggling act that keeps you on your toes.

The fear, the anticipation, the excitement - we get it. We've been there too. It can feel like you're walking a tightrope, where every step needs to be perfectly calculated. But guess what? You're not alone. We have tools designed to support you in this whirlwind of change. These are contingency forms, legal safeguards that will help you manage this transition smoothly. We'll break these forms down for you, explaining each one in detail, so you can walk this tightrope with a safety net firmly in place. Because you deserve to enjoy the journey towards your new chapter, rather than being consumed by fear and uncertainty. So, let's take this leap together.

Our first step is to build in some safeguards when you're about to buy a new property but you're still needing to sell your current one, right? Well, the great thing is, we've got you covered! We've got a form just for that situation!

However, here's a slight hiccup: we've actually got five different forms in Pennsylvania related to this situation. Not only do you need to know they exist, you also need to figure out which one of the four contingency forms matches your unique situation. Then, you need to understand how the fifth form comes into play. Sounds a bit complicated, doesn't it? But don't worry, as more people are starting to use these forms again, it's the perfect time for a quick rundown.

Here are the five superstar forms:

1. Settlement of Other Property Contingency Addendum to Agreement of Sale (Form SOP)
2. Sale & Settlement of Other Property Contingency Addendum to Agreement of Sale (Form SSP)
3. Sale & Settlement of Other Property Contingency (With Right to Continue Marketing) Addendum to Agreement of Sale (Form SSP-CM)
4. Sale & Settlement of Other Property Contingency (With Right to Continue Marketing and Timed Kickout Clause) Addendum to Agreement of Sale (Form SSP-TKO)
5. Seller’s Reply to Proposed Agreement of Sale for Buyer’s Property or Buyer’s Financial Ability to Proceed (Form SRA)

But don't get overwhelmed! You can read about each form below. And hey, just a heads up - none of these forms give you, the buyer, the right to back out of the Agreement of Sale if your current property doesn’t sell. Only the seller has that power.

Let's dig a bit deeper into each form:

Settlement of Other Property Contingency Addendum (SOP) 

This one is perfect when you've already found a buyer for your current property. It simply lists your property address and the settlement date. If the settlement doesn't happen by the set date, it gives the seller the option (not obligation) to pull the plug on the Agreement of Sale. In this case, you'd get your deposit back.

The Sale & Settlement Forms (SSP, SSPCM, SSPTKO) kick in when you haven't yet found a buyer for your property. These forms vary in terms of who has what rights, and when.

Sale & Settlement of Other Property Contingency Addendum (SSP)

This is usually seen as your best friend among the forms, in your capacity as home BUYER. You use it when the seller agrees to pause marketing their home while you try to sell yours. The seller, however, gets to negotiate how quickly you get your property on the market and the listed price. The seller can also accept or reject your agreement for your current property. If you can't sell your property by the stated date, the seller has the right to terminate, with your deposit returned. This power continues even past the stated date, but ends once your property goes under contract with terms acceptable to the seller.

Sale & Settlement of Other Property Contingency (With Right to Continue Marketing) Addendum (SSP-CM)

This one tends to be more seller-friendly because it allows the seller to continue actively marketing their property and to accept another offer at any time, no advance notice needed. If your property deal falls through, the seller can put their property back on the market. But remember, even if they don't find a better offer, the seller still has a separate right to terminate if you don't have an agreement by a set date.

Sale & Settlement of Other Property Contingency (With Right to Continue Marketing and Timed Kickout Clause) Addendum (SSP-TKO)

This form is a happy medium between the other two sale & settlement forms. It allows the seller to continue marketing their property, but if they want to accept another offer, they have to give you a certain period of time (the "timed kickout") to prove you have your property under contract or that you have the financial ability to proceed.

Seller’s Reply to Proposed Agreement of Sale for Buyer’s Property or Buyer’s Financial Ability to Proceed (SRA)

The last form in the series is for sellers to officially accept or reject your agreement of sale for your current property and/or your financial ability to proceed. It's also the place where the seller can accept/reject your additional financial information showing that you can proceed without selling the current property.

Home Contingency Comparison Chart

So, there you go, a quick rundown of these forms. They might seem complex at first, but with a little patience, you'll soon find the one that perfectly fits your situation!

Call or text me if you have any questions. 814-318-8444