When Bond Clauses Sink Sales

KVV Inc Attorneys

Published 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.