Adding an Acceleration Clause
Sellers who wish to continue marketing their sought-after property, whilst they wait for fulfilment of suspensive conditions of an existing offer, should consider the insertion of an acceleration clause in the said offer.
This clause comes into effect in the instance where a seller receives a further offer (for the same amount or higher) from another buyer.
The suspensive conditions in the initial offer are then accelerated and the existing buyer is given only a few days to finalise their finance or arrange payment of the purchase price (depending on the terms of the clause), failing which the Seller is then able to proceed with the second offer received.
The acceleration clause can be tailored to the needs of the seller but must be pointed out to the purchaser and accepted by them in the agreement.
For more information contact the Bothas Incorporated office.