Although it is generally better to sell first before buying another property, sometimes the market conditions are right to buy before you sell. Home buyers who decide to buy before selling often write a "Sale of Buyer's Home" condition into the purchase contract, meaning the buyer's property must sell before the buyer is obligated to complete the transaction.
Because a purchase contract with a "Sale of Buyer's Home" condition is most often a good deal for a buyer and a riskier solution for a seller, many sellers want a "Sale of Buyer's Home Schedule" attached to the purchase contract. This schedule is a legal document that sellers and buyers can use to address a "Sale of Buyer's Home" condition and protect the rights of both parties.
Sellers want to know the status of the buyer's selling process as it could make a difference as to whether the offer is accepted. Obviously, if the buyer's home is not on the market, the seller might not consider the offer at all because it will give the impression that the buyer is not serious about selling or buying. If there is "Sale of Buyer's Home Schedule" attached to the purchase contract it stipulate that the buyer's property be listed or will be listed within 24 hours of acceptance of the purchase contract.
The seller's property will continue to be marketed and the seller may accept a second conditional purchase contract. If the seller signs a second purchase contract, the seller will give the first buyer notice that a second offer has been accepted. The first buyer will be given a short period of time, to give the seller notice that ALL conditions in the purchase contract are satisfied or waived making it an unconditional purchase contract – the offer is enforceable and will be completed according to its terms. If the first buyer fails to give this notice to the seller within the time limit the purchase contract is ended and the deposits will be returned to the buyer. The first buyer and the seller will have no further obligations or liabilities to each other under the terms of first purchase contract.
If the first buyer fails to give this notice to the seller within the time limit the second offer becomes the only offer on the seller's property and will proceed according to the terms and conditions of the second offer.