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Understanding Hubbard Clauses

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Written by Jill Shaw, Realtor | Vanderblue Team | Higgins Group Real Estate

 


Perhaps you have heard the term Hubbard Clause in real estate, but don't understand how they operate.  Let's say you start going to open houses just out of curiosity and find your dream home.  But your house is not yet on the market. 

You may submit an offer with a contingency that you need to sell your home in order to close (Hubbard Clause).  Usually these are 30, 60 or 90 day periods where you must be under contract with a buyer within that time-frame.  If the seller of the property receives another offer during that period, they must notify you and then you have 48 hours to respond and either move forward with your original contract or rescind your offer.  Hubbard clauses may also be extended if both parties agree. 

They aren't always ideal, but can work in certain situations and can give you an opportunity not to lose your dream home!


 

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