When Bond Clauses Sink Sales
KVV Inc AttorneysPublished on: 04/03/2025
Preparation is key to a successful house sale. A common pitfall is a poorly drafted "bond clause" (suspensive condition). This clause makes the sale conditional on the buyer getting a bond. Vague wording can lead to disputes. The clause should specify the deadline, amount, and what constitutes "approval." Buyers should consider specifying a maximum interest rate. Sellers might add a "72-hour clause." If the buyer can't secure a bond, the clause can be amended before the deadline, or the buyer can waive it (if for their benefit). Consult an attorney before signing any agreement.
KVVProperty LawConveyancing Property sale agreementSuspensive conditionBond clauseSelling a houseBuying a house Property transferDeeds office Bond approval Mortgage bond
