A clause often included in an offer to purchase when the buyer has a home sale contingency. If a buyer needs to sell another property in order to be able to purchase the subject property, they will often also include a bump clause to make the home sale contingency more acceptable to the seller.
When an offer to purchase includes a home sale contingency with a bump clause, if the seller receives another acceptable offer, he or she can notify the buyer of the second offer. The buyer then must withdraw the homes sale contingency or be “bumped”. The buyer often asks for a 48 hour “bump” period, but it may be shorter or longer. If the buyer cannot withdraw the home sale contingency in the aloted period of time, the seller can then “bump” the buyer and accept the other offer.
The second offer does not have to be for a higher price. It must only be an acceptable offer in the seller’s eyes. A home sale contingency is not very appealing without a bump clause, since without it, the seller could be obligated to wait indefinitely until the buyer sells the other property.« Back to Glossary Index