What is a Hubbard Clause?

A Hubbard Clause is a contingency used during a purchase and sale agreement that states that the buyer's purchase of the property is conditioned to the buyer's ability to sell  and close on another  pieces of real estate.

Hubbard Clause Rider

With the Hubbard Clause:
The property will  continued be shown to other potential buyers.
In the case that a  buyer comes along and  is interested in offering on the home, as well, the seller will need to advise the 1st buyer of the offer.
The 1st buyer then will  the have the option to remove the Hubbard Clause by:

1. Finding a way to remove the Hubbard Clause- (the contingency) In this case a, " Sale of Buyer's Property Contingency Removal Form would be presented to the seller(s)

 or

    2.  Terminating and canceling the Purchase & Sales Contract, all together.

In most cases, a time frame for the buyer to remove the Hubbard Clause was set in place at the time of submitting the offer with the Hubbard Clause.

This contingency is not very difficult to put in place. It just takes great organization and communication skills. Your  Realtor® would be able to help the buyer  with this process.

Next: Found a Buyer and The Removal of The Hubbard Clause