When should a buyer use the NCBA/NCAR Contingent Sale Addendum?

The use of the NCBA/NCAR Contingent Sale Addendum is appropriate when a buyer wants to make their offer to purchase a property contingent upon the sale of their current property. This situation arises when a buyer needs to sell their existing home in order to finance the purchase of a new one. The addendum outlines the conditions under which this offer is valid, providing a framework for the buyer to protect themselves in the event their current property does not sell within a specified time frame or under certain terms.

This regulation is essential for buyers who may otherwise face financial difficulties if they commit to purchasing a new property without first securing the sale of their current residence. The addendum clearly states the terms and time limits, ensuring that both the buyer and seller understand the conditions attached to the offer, thus facilitating a smoother transaction.

In contrast, making multiple offers on various properties pertains to different strategies for securing a home and does not specifically relate to the need for contingency based on a sale. Similarly, engaging in a short sale does not inherently require the use of this addendum because the complexities of short sales are distinct and revolve around the seller's ability to sell the property for less than the mortgage owed. Lastly, when a seller is buying another property, the