Buying in Horace but need to sell your current home first? You are not alone. Timing two moves can feel stressful, especially when you are trying to protect your deposit and keep your plans on track. In this guide, you will learn how home sale contingencies work in North Dakota, how sellers view them in Cass County, and the steps you can take to negotiate with confidence. Let’s dive in.
What a contingency means in North Dakota
A contingency is a condition in your purchase agreement that must be met for the deal to move forward. If the condition is not met and not waived, the contract can usually be ended or renegotiated without a breach claim. In North Dakota, contingencies are contractual, which means the exact wording and timelines you agree to will control the outcome.
Most buyers and sellers use standard forms from local REALTOR associations, then tailor the details through negotiation. Clear deadlines, notice requirements, and waiver language reduce disputes. For unusual situations or high-value transactions, many clients ask a North Dakota real estate attorney to review the language.
Home sale contingency basics
A home sale contingency lets you buy a new home only if a separate event tied to your current home happens. Sellers in Horace will consider different versions, each with a different level of risk.
Common formats sellers see
- Contingent on sale and closing: Your purchase moves forward only after your existing home both sells and closes by an agreed date. This is the least seller-friendly format.
- Contingent on getting a contract: You must secure a signed purchase agreement on your current home within a set number of days. Closing can follow later.
- Contingent with a kick-out clause: The seller keeps marketing the home and can accept a backup offer. If that happens, you get a short window to remove your contingency or step aside.
Kick-out clause explained
A kick-out clause helps a seller manage risk while giving you a fair chance to perform. If the seller receives another acceptable offer, they can notify you. You then have a limited period, often 48 to 72 hours, to remove your sale contingency. If you cannot remove it, the seller can move forward with the backup buyer.
For you, the kick-out clause means you should be ready to act fast, especially if your current home is not yet under contract. For the seller, it keeps the home visible to the market and maintains leverage if timelines stretch out.
Typical timelines you can expect
There is no single rule for contingency timing in North Dakota. Parties negotiate based on the property, the lender, and the local market. In the Horace area, these ranges are common:
- Home sale contingency: Often 30 to 60 days, with periodic proof that your home is listed or under contract.
- Kick-out response window: Often 48 to 72 hours after seller notice.
- Inspection period: Typically 7 to 14 days for general inspections. Extra time may be needed for septic, well, or radon on rural or acreage properties.
- Financing and appraisal: Commonly 21 to 45 days to reach a mortgage commitment and complete the appraisal.
These are starting points. The exact numbers should match your lender’s capacity, your current home’s status, and the seller’s desired closing date.
How Horace market conditions shape acceptance
Horace sits within the Fargo–Moorhead area, so regional inventory and days on market often drive whether a seller will accept a home sale contingency. In tighter markets, sellers prefer offers with fewer conditions, stronger earnest money, and firm proof of financing. When inventory is higher, sellers may be open to a well-documented sale contingency, especially if price and terms are attractive.
If you are buying and selling at the same time, ask your agent for current local metrics like active inventory and median days on market. This helps you set realistic timeframes and decide whether to include a kick-out clause, offer an appraisal gap solution, or explore temporary financing options.
Protect yourself as a Horace seller
If you are evaluating a buyer’s offer that includes a home sale contingency, reduce risk by building in clear protections and accountability.
- Require proof of activity: Ask for evidence that the buyer’s home is listed and being shown, or that it is already under contract.
- Use a kick-out clause: Keep marketing and allow backup offers while giving the buyer a short response window if you receive another offer.
- Set firm deadlines: State specific dates for the buyer to meet milestones, such as obtaining a contract on their home or securing a mortgage commitment.
- Consider earnest money structure: Request a meaningful earnest money deposit and, where appropriate, increases at key milestones.
- Keep leverage to the end: If timing is tight, explore an escrow holdback or delayed possession to align closings without derailing your plans.
Make your contingent offer competitive
A home sale contingency does not have to hold you back if you present strong evidence and move quickly.
- Show real progress: Provide a copy of your active listing, recent showings, or a pending contract on your current home.
- Bring strong financing: Include a lender pre-approval and be transparent about your path to clear-to-close. Shorten contingency windows where you can realistically perform.
- Consider bridge options: Explore bridge financing, a HELOC, or a short-term loan to reduce or eliminate your home sale dependency. Understand costs and underwriting timelines before you offer.
- Prepare for a kick-out notice: Have a plan for what you will do if the seller triggers the clause. Know your limits on carrying two homes, even temporarily.
Other contingencies you should know
Contingencies often work together. Understand how each one affects your timing and leverage.
- Financing contingency: Your purchase depends on getting a loan approval on agreed terms by a set date. Define what counts as approval, such as a mortgage commitment.
- Appraisal contingency: Protects you if the property appraises below the purchase price. You can agree to bring cash, renegotiate the price, or terminate according to the contract.
- Inspection contingency: Gives you a window to inspect and request repairs or credits. You may see a repair cap or an option for the seller to credit you instead of fixing items.
- Title and HOA review: You get time to review the title commitment and any HOA documents. Sellers are typically expected to cure title defects before closing.
- Rural and acreage items: For homes near Horace with septic or wells, include specific contingencies for septic compliance and water quality testing. Consider pest or environmental checks when appropriate.
Cass County process notes
In Cass County, title companies or closing attorneys handle the title commitment and coordinate recording with county offices. During title review, make sure you understand any easements, special assessments, or tax issues that could affect use or cost. For rural properties, verify septic permits and well records through the appropriate county departments and build enough time into your contract to complete inspections.
Newer subdivisions near Horace may also have HOA rules or architectural controls. Use a document review contingency so you can confirm any restrictions that may affect your plans.
Negotiation tools that reduce risk
You can adjust your offer or counter to balance protection and competitiveness.
- Appraisal gap language: If you are able, specify how much cash you will bring if the appraisal is short. This can reassure a seller.
- Defined milestones: Spell out what counts as loan approval, when inspections end, and how repair requests must be delivered.
- Backup offers: If you are a seller, keep marketing and accept a properly structured backup offer that becomes primary if the first deal falls through.
Next steps for a smooth two-move plan
If you are moving within the Fargo–Moorhead area, start with a clear pricing plan for your current home and realistic underwriting timelines for your purchase. Align your contingency windows with your lender’s expectations, and use a kick-out clause or backup offer strategy when the market calls for it. If your situation is complex, consider asking a North Dakota real estate attorney to review your contingency language.
Ready to map out your sale and purchase in Horace with a local, systems-driven plan? Reach out to Brett Dalzell for a pressure-free consult and an evidence-based strategy tailored to your goals.
FAQs
Will a Horace seller accept my home sale contingency?
- It depends on market conditions and your proof of progress. Sellers are more open if your home is already under contract, your financing is strong, and timelines are tight and clear.
What is a kick-out clause in North Dakota?
- It lets the seller keep marketing the home and, if another offer is accepted, gives you a short window to remove your contingency or allow the seller to proceed with the backup buyer.
How long do contingency periods usually last?
- Common ranges are 7 to 14 days for inspections, 21 to 45 days for financing and appraisal, and 30 to 60 days for home sale contingencies, but all terms are negotiable.
Can I waive contingencies to win the home?
- Yes, but doing so increases your risk. Talk with your lender and agent about whether a shorter window, added earnest money, or an appraisal gap is a safer way to strengthen your offer.
What happens if the appraisal comes in low?
- You and the seller can renegotiate price, you can bring additional cash if allowed, or you may terminate if your contract’s appraisal contingency provides that right.
Do North Dakota laws set specific contingency rules?
- North Dakota does not have a special statute for contingencies. Your rights come from the contract language and general contract law, so precision in the written terms matters.
