What is a Hubbard Clause?

What is a Hubbard Clause??


The Hubbard Clause explains to the seller that you (the buyer) have a home to sell before you can purchase the next home. 

Should a seller accept an offer with a Hubbard Clause??


The Hubbard Clause is part of a legal sales contract that protects the buyer from having to close on the purchase of a new home until they have successfully sold their current home.   The Hubbard Clause sets a specific number of days a potential buyer has to sell his home.  During that time period, the seller can still market their home and accept another offer.  If another offer is received, the buyer with the Hubbard Clause has a set amount of time to prove he can buy the home without the contingency, even if the second offer is for more money.


 Pros and Cons of accepting an offer with a Hubbard Clause




Will other buyers want to see my house if they know it is under contract with a Hubbard clause?


Some sellers will think it dissuades other buyers knowing that there is already an accepted offer on the property.


Other sellers view it as attractive because people usually want what they can’t have.  For example, it validates the price and gives psychological comfort knowing that someone else was willing to step up and make a reasonable offer on the property.  Therefore, a buyer that has been watching that property may now step up and make an offer. 




Why should I look at properties with a Hubbard Clause?


Homes with a Hubbard may be viewed as less “available” because when you submit an offer on that home, there is another buyer (who has an agreed upon purchase price and has already completed their inspections) who has an agreed upon time frame (let’s say 72 hours) to release their contingency on the property.  If they cannot release their contingency, the sellers can then proceed to negotiate with you accept your offer. 


Can the seller accept a lower offer than my offer?


Yes, a seller may determine that a lower price offer may be better if it has fewer contingencies.





3 Responses to “What is a Hubbard Clause?”

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