The Tribune

By Mike Lightbourn

When you receive an offer to purchase, your first thought will be the price. If it’s full price, you’ll be excited. And you should be, provided there’s no “subject to” clause(s).

Sometimes purchasers try to throw in “subject to” clauses, which are often referred to as “weasel clauses.” The most common is subject to financing. Obviously a purchaser has to have the ability to come up with the purchase price otherwise there will be no sale anyway.

Some purchasers may ask for a “subject to satisfactory financing” clause to give them time to arrange for funding. Of course, the vendor wants to make the sale, but what is the definition of “satisfactory?”

So, even if funding were approved, the purchaser could say that it was not on satisfactory terms and pull out of the sale. Your property would be off the market during that period. In the meantime, prospects would view other homes and might find something else.

It’s quite possible the would-be purchaser won’t be approved for a bank loan. Then you’ll have to start all over again.

You’d have lost that “hot on the market” buzz.

Problems could also arise if you, for example, agree to allow a purchaser to sell their home before they close on yours.

If you accept such a condition, impose a realistic timeframe so your property isn’t tied up. Insist on a “kick out” clause that allows you to keep your home on the market during this period.

If you receive a firm offer, the first prospect would have, say, 72 hours to come up with confirmation of funding.

There are other reasonable clauses, such as “subject to a satisfactory inspection.” In a case like this impose a tight timeframe.

Make sure you discuss the offer with your Bahamas Real Estate Association agent and your attorney before making your decision.

Mike Lightbourn is 
president of Coldwell Banker Lightbourn Realty