Real Estate Insights: What Is a Hubbard Clause?

What is a Hubbard clause? "A Hubbard Clause is a contingency in a purchase and sale agreement that expressly conditions a Buyer’s purchase of a property upon the Buyer’s ability to sell and close on another piece of real estate (usually their existing home)."

What is a Hubbard clause? “A Hubbard Clause is a contingency in a purchase and sale agreement that expressly conditions a Buyer’s purchase of a property upon the Buyer’s ability to sell and close on another piece of real estate (usually their existing home).”

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"Kick-Out" Clause It’s common for a real estate contract to guarantee the sale, contingent on the buyer’s ability to sell his or her current home. In today’s market with low housing inventory, it may.

What is a real estate Hubbard Clause? The basics of a Hubbard Clause are that it creates a conditional purchase and sales agreement on the Sale of a property. It usually has a term in which the buyer has the first right of refusal on a property.

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SALE OF BUYER’S PROPERTY CONTINGENCY (AKA "HUBBARD" CLAUSE) This Contract is contingent upon (i) Buyer contracting for the sale of Buyer’s property, located at and the (ii) satisfaction of all material contingencies contained in such Contract, including any mortgage contingency.

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The Hubbard Clause sets a specific number of days a potential buyer has to sell his home. During that time period, the seller can still market their home and accept another offer. If another offer is received, the buyer with the Hubbard Clause has a set amount of time to prove he can buy the home without the contingency, even if the second offer is for more money.