The “outside offer” normally forms part of the wording of the suspensive condition pertaining to the sale of the purchaser’s property.
This means that the purchase of the property is subject to the purchaser being able to sell his/her existing property. Generally the proceeds of the sale of the purchasers existing property are then utilized to pay the purchase price of the new property.
The outside offer enables the seller, pending fulfillment of the suspensive condition (pending the sale of the purchaser’s existing property), to market the property and receive written offers from other prospective purchasers.
Should the seller receive a better offer from another prospective buyer (an outside offer), the purchaser shall be entitled to:
1. Declare the agreement unconditional; or
2. To make an offer that is equivalent or better than the other one.
If the purchaser does not do one of the above, the seller is entitled to accept the other offer.
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Author – Jessica Gooding