A Guide to Subject to Sale Offers
Buying a home before selling your current one can feel like a financial juggling act. What if your old place doesn’t sell in time? What if you get stuck carrying two mortgages?
That’s where subject to sale offers come in — a contract condition that allows you to write an offer on a new home while making the purchase contingent on selling your existing one first.
In this guide, we’ll walk through how subject to sale offers work, when to use them, and how to structure them effectively — especially in markets like North Vancouver and West Vancouver, where timing and competitiveness matter.
Disclaimer: This article is for general informational purposes only and does not constitute legal, financial, or professional advice. Always consult with your Realtor, mortgage advisor, or lawyer for guidance specific to your situation.
What Is a Subject to Sale Offer?
A subject to sale offer is a condition added to a purchase contract that states the buyer must first sell their current property before completing the purchase of a new one.
It protects you from owning two homes at once — and having to carry two mortgages, pay double property tax, or face other financial strain.
Example clause:
"Subject to the Buyer entering into a contract to sell the Buyer’s property at [address], and that contract becoming unconditional on or before [date]. This condition is for the sole benefit of the Buyer."
This strategy is popular among:
- Upsizers or downsizers
- Families managing big transitions
- Sellers buying a replacement property in fast-paced markets
What is a Time Clause?
Also called an “escape clause,” it allows the seller to continue marketing their property while under contract with a subject to sale buyer. If the seller receives another offer, they can trigger the time clause to prompt a decision from you.
You’ll typically have a short window (usually 24–72 hours) to either:
- Remove your subject to sale condition and proceed with the purchase unconditionally, or
- Walk away from the deal, in which case your deposit is returned.
But here’s an important nuance:
For the seller to accept that second offer while still in contract with you, the new offer must include a “subject to the seller ceasing to be obligated” clause. This protects all parties and ensures the seller isn’t double-committed.
Time Clause Sample Wording:
The Seller may upon receipt of another acceptable offer for the Property deliver written notice to the Buyer or to (name of Buyer’s agent and brokerage) requiring the Buyer to waive or satisfy all conditions in this Contract within (number) hours of the delivery of the written notice. If the Buyer fails to waive or satisfy all of the conditions before expiry of the notice period this Contract will terminate and the Deposit will be returnable in accordance with the Real Estate Services Act.
Including the “subject to the seller ceasing to be obligated” condition in the second offer is standard practice and a critical protection. It ensures the seller is not contractually bound to sell the property twice — only once the first contract collapses or is removed does the second contract become binding.
Want to learn more about how seller subjects like this work and when to use them? Check out our article:
A Sellers Guide to Subject Clauses
When Does a Subject to Sale Strategy Make Sense?
A subject to sale offer can be a smart move if:
- You need the funds from your current home to purchase your next one
- You want to avoid the risk of double mortgage payments
- You’re entering a slower or balanced market where sellers are more open to conditions
- Your home isn’t yet listed or sold, and a clean offer isn’t realistic
In hot markets (especially for entry-level homes in North Vancouver), sellers may be less willing to accept this clause. But in higher-end or slower-moving segments — such as certain West Vancouver properties — it’s more commonly accepted.
Risks of a Subject to Sale Strategy
While subject to sale offers can reduce financial risk, they come with some tradeoffs:
1. Less leverage in negotiations
Sellers may view your offer as less certain. In multiple-offer situations — common in parts of North Vancouver — cleaner offers are often prioritized.
2. The “time clause” adds pressure
Most subject to sale offers include a clause that allows the seller to keep marketing the property. If they receive another offer, you’ll typically have 24 to 72 hours to either remove your subject or walk away.
3. Financial exposure and the risk of owning two homes
If your current home doesn’t sell before the end of your subject, you could find yourself in a difficult position — needing to decide whether to remove your subjects and proceed with the purchase anyway.
This risk can arise in two common scenarios:
• Your subject removal date arrives, but your home hasn’t sold
You may ask the seller for an extension, which may or may not be granted. In West Vancouver’s higher-end market, this flexibility often depends on how well your property is priced and performing.
• The seller invokes the “time clause” (escape clause)
You may be forced to firm up your offer without a guaranteed sale — a high-pressure moment, especially in fast-paced North Shore neighbourhoods.
4. Limited time to sell
The pressure to sell quickly can lead to lower offers or compromises you’d rather avoid.
Pros and Cons of Subject to Sale Offers
Pros:
- ✅ Reduces financial risk (you don’t buy unless your sale happens)
- ✅ Gives you control over the timing of your move
- ✅ Makes the transition smoother, especially for families or retirees
Cons:
- ❌ Less attractive to sellers in multiple-offer situations
- ❌ Your offer may be bumped if another buyer comes along
- ❌ You may feel pressure to sell quickly, even if offers aren’t ideal
- ❌ If your sale doesn’t happen, your dream home might slip away
How to Strengthen Your Subject to Sale Offer
If you're writing a subject to sale offer, make it as appealing as possible by:
- Having your home listed (or nearly listed) before submitting the offer
- Pricing it competitively so it’s more likely to sell quickly
- Providing a short subject removal window
- Demonstrating progress (e.g. recent showings, offer activity) to the seller’s agent
The goal is to show that your home is market-ready and likely to sell quickly — reducing the perceived risk for the seller.
What If My Home Doesn’t Sell in Time?
There are two main risk points:
- Subject removal deadline arrives, but your home hasn’t sold
You can request an extension — but the seller is not obligated to grant it. - The seller triggers the time clause
You may be forced to decide quickly whether to commit to the purchase without a confirmed sale. If you can’t (or don’t want to), the contract ends.
This is why preparation, timing, and honest conversations with your Realtor are key.
What Are the Alternatives to a Subject to Sale Offer?
If a subject to sale offer isn’t right for your situation — or isn’t being accepted in your target market — there are still options that may help you manage the timing and risk of buying and selling at the same time.
From selling first with a subject-to-purchase clause, to negotiating long completion dates, or buying first with financial backup, the best approach depends on your specific goals, the local market, and your comfort with risk.
We cover each of these strategies in detail — including when they work, the risks involved, and how to structure them — in our related article:
Read: How to Buy and Sell a Home at the Same Time – Strategies to Reduce Risk and Stress
Final Thoughts
Subject to sale offers can be an excellent strategy for managing risk — but they’re not one-size-fits-all. In some markets, they’re commonly accepted; in others, they may put you at a disadvantage.
The key is to understand the pros and cons, structure your offer properly, and be prepared for how things might unfold.
If you’re considering this type of offer — or trying to time your sale and purchase — we can help. Reach out to our top team at the form below.
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