What Is a Home Sale Contingency Addendum in NH Real Estate?

🏡 What Is a Home Sale Contingency Addendum in NH Real Estate?

For many New Hampshire buyers, purchasing a new home depends on successfully selling their current one. To protect them during this transition, NH real estate contracts often include a Home Sale Contingency Addendum.

This addendum outlines the buyer’s obligation to sell their existing home before completing the new purchase — and explains what happens if that sale falls through.

Here’s how it works in NH.

⭐

What Is a Home Sale Contingency Addendum?

A Home Sale Contingency Addendum is a written agreement stating that a buyer’s purchase of a new property depends on selling their current home.

If the buyer’s home does not go under contract or close within the time stated, they may:

✔ Terminate the contract without penalty

✔ Recover their earnest money

✔ Request an extension (if both parties agree)

This protects the buyer from being forced to buy a new home without the funds from their existing sale.

⭐

Types of Home Sale Contingencies in NH

1. Home Sale Contingency

The buyer must sell and close on their current home before purchasing the new one.

2. Home Sale & Settlement Contingency

The buyer’s current home is already under contract, but it still needs to close successfully.

This second type is stronger and more appealing to sellers because the buyer’s sale is already underway.

⭐

Why Buyers Use This Addendum

A Home Sale Contingency Addendum helps NH buyers:

✔ Avoid owning two homes at once

✔ Prevent financial strain

✔ Protect their earnest money

✔ Ensure they have sale proceeds for their next purchase

⭐

Why Sellers Sometimes Accept Home Sale Contingencies

Although sellers typically prefer non-contingent offers, they may agree to this type of addendum when:

✔ The buyer’s home is already listed or under contract

✔ The buyer’s home is in a desirable price range

✔ Market conditions are slower

✔ The seller receives stronger terms (price, closing timeline, etc.)

⭐

Kick-Out Clauses in the Addendum

Most NH Home Sale Contingency Addendums include a kick-out clause, allowing the seller to continue marketing the home.

If the seller receives another acceptable offer:

1️⃣ The seller notifies the first buyer

2️⃣ The buyer has a set number of hours (commonly 24–72) to:

✔ Remove their contingency and move forward, OR

✔ Decline, which terminates the contract and refunds their earnest money

This protects sellers from being locked into a weak or stalled transaction.

⭐

Bottom Line

A Home Sale Contingency Addendum provides essential protection for NH buyers who must sell their current home before buying another. It outlines timelines, expectations, and what happens if the sale doesn’t occur — keeping the transaction clear and fair for both parties.

Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com