1. What This Condition Is

This condition allows a buyer to write an offer while still needing to sell their own property first. The contract only becomes enforceable when:

• The buyer has sold their property firm (all conditions waived), and

• The buyer has waived or satisfied all conditions in the new contract.
  
  

Under the AREA Schedule, a buyer’s home is not considered “sold” unless conditions on that sale are fully waived or satisfied. A conditional sale is not enough.

2. When This Condition Should Be Used

This condition may be appropriate when:

• The buyer cannot qualify for financing until their current home sells.

• The buyer wishes to avoid the risk or cost of bridge financing.

• The buyer’s existing home is well-priced and likely to sell quickly.
  
  

It should be avoided when:

• The buyer’s home is not yet listed.

• The listing is overpriced or in a slow segment.

• The seller needs certainty or is in a time-sensitive situation.

• Multiple buyers are active in that price range.
  
  

3. The Sale of Buyer’s Property Schedule

The AREA Schedule must always be attached to any offer using this condition.
The Schedule requires:

• The full address of the buyer’s existing property.

• Confirmation of whether the property is already listed.

• The real estate board, brokerage, and asking price.

• If not yet listed, the number of hours within which it must be listed.

• A maximum listing price if it will be listed later.
  
  

This protects the seller by ensuring the buyer’s home will be priced reasonably and placed on the market quickly, reducing risk.

4. How the Seller’s Rights Work

While this condition is active, the seller has several important rights that must be understood and properly documented:

The seller may continue marketing the property.
Showings may continue unless the seller instructs otherwise.

The seller may keep the listing Active on MLS® (with proper disclosure).
CREB requires written seller instructions and disclosure of the Time Clause and notice period.

The seller may accept another purchase contract.
This second contract is treated as a Back-Up Offer.
When preparing or reviewing a back-up offer:

• You must include a Seller’s Condition in Section 8.3.

• The condition must clearly state:
  “This offer is a back up offer and is subject to the removal of all of the existing conditions on the accepted Special Clause offer dated __________.”

Without this condition, the seller could become legally tied to two buyers at once.

The seller may trigger the Time Clause (the required notice period).
This is done by issuing written Seller’s Notice to the first buyer.
The notice period—most commonly 24, 36, or 48 hours—is stated in the original contract.

These rights protect the seller from being locked into uncertainty while the buyer attempts to sell their existing home.

5. The Seller’s Notice (Time Clause Trigger)

Once the seller accepts a back-up offer, they may issue the Seller’s Notice immediately.

This notice is delivered using the AREA Sale of Buyer’s Property Schedule (the form used by either party to give notice of waiver or non-waiver).

When the Seller’s Notice is delivered, the first buyer has the exact number of hours stated in the contract—commonly 24, 36, or 48—to make one of two choices:

Option 1: Waive All Conditions

The buyer must waive every condition in their offer, including:

• Financing

• Inspection

• Condo document review

• Sale of Buyer’s Property Condition

• Any other buyer-specific conditions
  
  

If they waive all conditions before the countdown expires, the contract becomes firm and the seller must release the back-up offer.

Option 2: Issue a “Notice Not to Waive”

The buyer has the right to respond with written notice that they are not waiving conditions.

This immediately ends the contract, and the seller is free to proceed with the back-up offer.

If the Buyer Does Not Respond in Time

If the deadline expires and the buyer has not provided written waiver:

• The contract ends automatically.

• There is no discretion and no extensions unless mutually agreed in writing beforehand.

This is strict. A waiver delivered even one minute late is invalid.

6. Buyer Responsibilities

A buyer writing with this condition must:

• Have their home listed and marketed aggressively

• Price it realistically

• Understand that the home remains at risk

• Be prepared to act quickly if notice is served

• Consider whether bridge financing might be a safer option
  
  

Many buyers underestimate the stress of being given a short deadline to waive all conditions when their home has not sold.

7. Listing Agent Guidance: Accepting or Declining

Reasons it may be acceptable:

• Your seller is willing to wait.

• The buyer’s property is well-priced in a strong market segment.

• Your listing has limited current activity.
  
  

Reasons to avoid:

• The buyer’s home is overpriced or not listed.

• The seller has deadlines (purchase, possession, vacancy).

• Your listing is receiving steady interest.

• You expect other offers soon.
  
  

Agents must explain the uncertainty clearly to sellers.

8. Notices and Contract Compliance

All notices must follow Section 17 (Notice and Documents).

As the listing agent:

• Immediately diarize the Time Clause hours.

• Confirm receipt of any waiver or satisfaction notice.

• Keep strict track of timelines; missing a minute ends the contract.
  
  

As the buyer’s agent:

• Prepare buyers in advance for the possibility of being served notice.

• Confirm financial readiness if they choose to waive early.
  
  

9. CREB Rules: Time Clauses and MLS® Reporting

A Sale of Buyer’s Property Condition is considered a Time Clause.

CREB Definition of a Time Clause

A Time Clause is a condition allowing one party to give written notice that they have entered into another contract, and the other party must remove all conditions within a specified timeframe or the original contract ends.

This is exactly how Seller’s Notice works under Section 8.2(c).

CREB Rule 4.02 – Reporting Sales With a Time Clause

A listing with a Time Clause may remain Active on the MLS® System if:

1. The seller has given the listing brokerage written instructions to keep the listing Active, and

2. The Active listing includes disclosure that a Time Clause exists and states the length of the notice period (example: “48-Hour Clause”).
   
   

If these requirements are not met, the listing must be reported Pending.

CREB Rule 5 – Reporting Conditional Sales

When a conditional offer is accepted:

• The listing must normally be reported as Pending.
  
  

However, when the contract includes a Time Clause, CREB allows one of two statuses:

• Pending, or

• Active with a Time Clause, depending on MLS® requirements and seller instructions.
  
  

This flexibility allows sellers to continue marketing their home and potentially receive additional offers.

Remember: A Sale with a Time Clause, which is not subject to Rule 4.02(a). 

1) A Sale with a Time Clause can remain in Active status provided that the Seller has provided the Listing Brokerage with written instructions to maintain the listing as Active on the MLS® System. 

2) Disclosure of the existence of the Time Clause and the notice period must be disclosed on the Active MLS® listing at the time of acceptance of the conditional sale.

10. Practical Examples

If the buyer sells their home early:
The buyer may waive the condition early, and the contract proceeds normally.

If the seller receives another offer:
Seller issues notice.
First buyer must decide quickly.
If they cannot waive, the contract ends.

If the buyer’s home does not sell:
The contract ends automatically on the condition day.

If the buyer cannot waive during the notice period:
The contract ends at the moment the countdown expires.

11. Clear Script for Sellers

“This condition means the buyer must sell their home first. Your listing can stay Active on MLS® if you instruct us in writing, and we must disclose the Time Clause and notice period. If another buyer comes forward, you can issue notice to the first buyer. They must waive all conditions within that timeframe, or your contract ends and you can move forward with the new offer.”

12. Clear Script for Buyers

“You can write an offer while selling your home, but the sellers may keep the listing Active and continue showing it. If they accept another offer, you may be given a short window to waive everything, even if your home has not sold. If you can’t waive in time, the home goes to the next buyer.”

13. Key Takeaways

• This condition creates uncertainty and risk for both parties.

• The AREA Schedule must always accompany the clause.

• The seller can keep the listing Active only with written instructions and proper disclosure.

• A Time Clause allows the seller to trigger a strict countdown.

• If the buyer cannot waive, the contract ends automatically.

• REALTORS® must understand the MLS® reporting requirements to stay compliant.