Contingent Sales & Waiver Restrictions

Q: Why does Section 4 of OREF 083 – Buyer’s Contingent Right to Purchase Addendum say that the buyer can’t waive the contingency for their property sale?  Is it supposed to say that the seller can’t waive the buyer’s contingency?

A: Section 4 of OREF 083 – Buyer’s Contingent Right to Purchase Addendum is written this way to protect the seller. When a buyer needs to sell a property in order to purchase another one, it is usually unlikely they can qualify for financing without that sale. Without this restriction, a buyer could waive the sale contingency to stay under contract, knowing they could later terminate under their financing contingency and recover their earnest money. That would keep the property off the market for no real benefit. To prevent this, OREF 083 does not allow the buyer to unilaterally waive the sale contingency. Instead, if the buyer wants to waive it, they must use 083A – Contingent Right to Purchase – Notice to Seller which requires waiver of all financing-related contingencies and written confirmation from their lender, reasonably satisfactory to the seller, that they qualify without selling their property. This allows flexibility for the buyer while ensuring the seller is protected.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.