Page one of SCR310 Section 2 has checkboxes if the deal is contingent upon buyer selling other real property and if SCR504 is attached.

SCR504 can be used when the buyer needs/desires to sell their real property before closing on the subject property.

https://screaltors.org/wp-content/uploads/Forms/504.pdf

Section 1: Describe the Buyer’s other Property and Address on which this contingency is based.

Section 2: Checkbox when this contingency expires. This can be anytime up to and including closing (buyer helpful) or can sunset a number of calendar days prior to closing (buyer helpful and gives seller some options).

Buyer can always timely/properly terminate under this contingency.

Seller can always timely/properly terminate under this contingency, unless…parties agree otherwise (buyer has cash to close)(buyer can afford the purchase money loan without selling their other property).

Keywords: TIMELY/PROPERLY

Parties who fail to timely/properly terminate result in the SCR504 contingency sunsetting.

Section 3: During the SCR504 contingency, Buyer agrees to make good faith efforts to sell their property and keep Seller/Brokers informed and direct their listing broker to disclose information on their property and deliver copies of contracts and deliver notice of their closing. Failure to do all these is a potential Buyer breach of contract.

Keyword: AND

Section 4: During the SCR504 contingency, the Seller can market their Property and take back up contracts.

If a subsequent buyer does not request a sale of buyer’s property contingency, the Seller notifies Buyer and Buyer is then "on the clock" to either get their property under a proper contract or remove the SCR504 contingency and still be able to get the purchase money (e.g. by loan, by cash on hand) or Seller can timely/properly terminate and sell to the "more attractive terms" buyer.

Once "on the clock" the Buyer can also terminate or go into backup position.

Buyer is put "on the clock" by Seller delivering SCR505.

SCR505 is the notification from seller to buyer used when a subsequent buyer does not have a contingency to sell their other real property.

https://screaltors.org/wp-content/uploads/Forms/505.pdf

SCR504 is sometimes referred to by slang names such as "right of first refusal" or "knockout clause" or other slang terms.

Since the SCR310 Financing Section requires a good faith effort to get the loan by the Buyer, there is Buyer risk with buyer using any "strategy" or "deception" or "gamesmanship" with SCR504 or other agreements/representations, especially in multiple offer situations.

Posted by : Byron King on 5/8/18 (This information is only accurate as of 5/8/18. You must contact SCR for updates and changes to this information after 5/8/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)