How Do I Deal With a Subject to Suitable Housing Condition?

Every Friday we give fast answers to quick questions about home selling, buying, anything about real estate!

Today’s Question: How do I deal with a Subject to Suitable Housing Condition?

Today we’ll be identifying the best practices in dealing with a Subject to Suitable Housing condition in a home sale, for both buyers and sellers.


1. Define “Suitable Housing”

First, you’ll want to define what “suitable housing” means in this process. Instead of simply saying “subject to suitable housing,” specify what type of suitable housing you are looking for. For example, are you looking to buy a home, rent a home or apartment, or simply going somewhere that you can settle with family or friends? It’s important to clarify what suitable housing is and what it means to the seller.


2. Time frame to Find It

You’ll need to identify how much time the seller wants to find suitable housing. This is the time that the buyer will be tied up in the transaction, waiting for this to happen, so it needs to be a defined time frame.


3. Define “Finding” Suitable Housing

Define what “finding” suitable housing means- For example, does that mean having an accepted offer contract, past home inspection, or past purchase and sales signing on this suitable housing? What does it mean to “find” it?


4. What Happens if Suitable Housing Isn’t Found?

Determine what happens if the seller doesn’t find suitable housing. Upfront the buyer will want to know what will happen in this case. For example, if the seller doesn’t find suitable housing, are all deposits going to be returned, is the contract going to be extended, will the buyer be reimbursed for their home inspection expenses and such?


5. Consider Not Using a Suitable Housing Clause

If at all possible, consider not even using a Suitable Housing clause. It’s detrimental to a seller’s sale process, and buyers don’t want to be tied up with non-committed sellers who aren’t sure if they’re moving or not. So, consider an extended closing request or a lease-back option where the seller might be able to remain in the home a bit longer beyond closing. Or, try to find that suitable housing elsewhere, such as moving into secondary housing with a rental or moving in with friends or family members.


Those are your tips on dealing with Subject to Suitable Housing conditions. If we can help further, give us a call at 978-494-0346!

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