An offer came in on your home. There's a catch: it's subject to the buyer selling their home first.
You have a decision to make. Walk away and wait for something better? Accept and hope it works out? Or is there a middle path that keeps you protected without throwing the offer away?
There is. It's called the Time Clause Addendum. Here's everything you need to understand before you decide.
This article is written for sellers who are not currently under an exclusive listing agreement with another agent.
What 'Subject to Sale' Actually Means
When a buyer submits an offer that is subject to the sale of their property, it means their purchase of your home is contingent on selling their current home first. They typically need the equity from that sale to fund their down payment, closing costs, or to avoid carrying two mortgages at once.
Per UAR's Subject to Sale of Buyer's Property Addendum, this addendum specifies a deadline — typically 30 to 90 days per Utah law — by which the buyer must close on their current home. If they don't, the contract can be terminated and your home goes back on the market.
On paper this sounds manageable. In practice it means your home is essentially off the active market while you wait for someone else's transaction to close. That transaction has its own inspection, appraisal, financing, and closing timeline — all outside your control.
The Risks of Accepting a Contingent Offer Without Protection
Your home goes off the market. Buyers browsing the MLS are less likely to make an offer on a home that's already under contract. Your showing traffic drops.
The buyer's timeline is not your timeline. Their home has to be listed, shown, go under contract, pass inspection, appraise, and close — all before your deadline. That's a lot of steps on a deal you have no visibility into.
The domino effect. Per Utah Realty's transaction risk guide, a subject-to-sale contingency not satisfied is one of the more documented causes of a domino effect — two cancelled contracts, two sellers back on the market, both losing time in the selling season.
You lose your listing momentum. The first two to three weeks of a listing generate the most activity. Going under contract with a contingency and then falling out means relaunching into a market that has already seen your listing. That matters.
The buyer can walk away for free. If their home doesn't sell within the specified timeframe, they cancel and get their earnest money back. You've lost time. They've lost nothing.
The Tool That Balances It: UAR Form 18D — The Time Clause Addendum
This is the form that makes accepting a contingent offer workable.
Per UAR Form 18D — the Option to Keep Property on Market Time Clause Addendum and per Best Utah Real Estate's Time Clause guide, here's exactly what it does:
You accept the contingent offer AND attach the Time Clause Addendum. You've agreed to the price and terms — but you retain the right to keep marketing your home and accept backup offers.
If a better offer comes in, you notify the first buyer in writing. Per Section 1.A of UAR Form 18D, at your sole discretion, you may notify the first buyer that a backup offer has been accepted. This is important: the Time Clause doesn't automatically kick the first buyer out. You choose when to activate it.
The first buyer then has a set number of days to respond. Per Section 1.B of UAR Form 18D, the buyer has a specified number of days after receiving your written notice to either remove their contingency in writing and move forward, or do nothing and let the contract cancel automatically.
If they remove the contingency, they're committing to buy. Per Section 1.C of UAR Form 18D, the buyer can also be required to deposit additional earnest money when they remove their contingency. This is negotiated upfront. Removing the contingency means they're buying this home whether or not their current home has sold.
If they don't remove the contingency, the contract cancels automatically. Per Section 1.D of UAR Form 18D, the earnest money is returned to the buyer in full. You move forward with the backup offer. No dispute. The form handles it cleanly.
What the First Buyer Is Actually Risking When They Remove the Contingency
This is worth understanding clearly.
Per United Agent Services' Time Clause scenario guide, if the first buyer removes their contingency and then fails to close — even if their home hasn't sold — they are likely in breach of contract. Their earnest money is at risk. This is a significant commitment.
A buyer who removes the contingency is saying: I will buy this home regardless of what happens with my current home. Buyers who are confident in their ability to close — or who have bridge financing — will remove it. Buyers who aren't will let the contract cancel.
The Time Clause essentially forces the first buyer to show their hand.
The Three Conditions the Buyer Can Be Required to Remove
Per Section 1.B of UAR Form 18D, the addendum specifies which conditions the buyer must remove when bumped. The options are:
- Due Diligence Condition — their right to back out for any reason during the due diligence period
- Appraisal Condition — their protection if the home appraises below the purchase price
- Financing and Subject to Sale Condition — their loan contingency and the home sale contingency itself
This is negotiated upfront. You don't have to require all three. But the more conditions that remain active after the buyer removes the contingency, the more exposure you carry. Your agent should walk through each one based on the specific buyer's situation.
How to Negotiate a Contingent Offer as a Seller
Always attach the Time Clause Addendum. Accepting a subject-to-sale offer without it means your home is off the market with no mechanism to protect yourself. The addendum is a condition of accepting.
Negotiate a meaningful earnest money deposit. Per Best Utah Real Estate's guide, a larger deposit discourages weak contingent offers and compensates you for the risk of time off the market. A $500 deposit on a contingent offer is not meaningful.
Shorten the bump window. The time the buyer has to respond after your written notice is negotiable. The industry often defaults to 72 hours. Consider negotiating 24 to 48 hours — especially when a backup buyer is motivated and waiting.
Keep marketing actively. The Time Clause only protects you if you continue marketing. Keep the home available for showings. Pursue backup offers. The addendum is useless if you go dark after accepting the contingent offer.
Evaluate the buyer's position before you respond. Is their home already listed? Already under contract? There's a significant difference between a buyer whose current home closes in 10 days and one who hasn't listed yet. Ask your agent to find out before you counter.
Negotiate additional earnest money on removal. Section 1.C of UAR Form 18D allows you to require the buyer to deposit additional earnest money when they remove their contingency. Use this. It's your signal that they're serious.
When a Contingent Offer Makes Sense to Accept
A contingent offer with the Time Clause can make sense when:
- Your home has been sitting and you haven't seen other interest
- The buyer's home is already under contract or will list imminently
- The price and terms are otherwise strong
- You're in a buyer's market where contingent offers are more common
- Your agent is actively pursuing backup offers so the Time Clause has real teeth
It makes less sense when:
- You're in a strong showing period with other buyer interest coming
- The buyer's home isn't listed yet and the timeline is uncertain
- The earnest money offered is too low to compensate for the risk
- You're on a tight timeline and can't afford to lose listing momentum
The Bottom Line
A contingent offer isn't automatically a bad offer. In Utah County's buyer's market in 2026, where sellers are seeing fewer clean offers than in prior years, a contingent buyer who is otherwise qualified and motivated may be worth working with.
The Time Clause Addendum is what makes it workable. It keeps you on the market. It gives you a mechanism to protect yourself. And it puts a real decision point in front of the buyer when something better comes along.
Without the Time Clause, a contingent offer is a gamble. With it, it's a calculated position.
A CMA is not an appraisal and should not be used as one.
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Frequently Asked Questions
What does subject to sale mean on a real estate offer in Utah? It means the buyer's purchase of your home is contingent on them first selling their current home — typically within a deadline of 30 to 90 days. If their home doesn't sell in time, they can cancel and receive their earnest money back. Your home is effectively off the active market during that period.
What is the Utah Time Clause Addendum (UAR Form 18D)? The Option to Keep Property on Market Time Clause Addendum allows you to accept a contingent offer while continuing to market your home. If a better offer comes in, you notify the first buyer in writing. They have a set number of days to remove their contingency and commit, or let the contract cancel automatically and receive their earnest money back.
Do I have to accept a contingent offer? No. You can reject it, counter it, or accept it with the Time Clause Addendum attached. You are never obligated to accept any offer.
What happens if I bump the first buyer and they remove the contingency? They are committing to buy your home whether or not their home has sold. If they fail to close, they are likely in breach of contract and their earnest money is at risk.
What happens if the first buyer doesn't remove the contingency when bumped? Per UAR Form 18D Section 1.D, the contract cancels automatically. The buyer's earnest money is returned in full. You move forward with the backup offer.
Should I keep marketing after accepting a contingent offer? Yes. The Time Clause only has value if you're actively pursuing backup offers. Keep the home available for showings.
How long does the buyer have to respond when bumped? Negotiated in Section 1.B of UAR Form 18D. Industry standard is often 72 hours. You can negotiate this down to 24 to 48 hours.
Related reading:
- I Want to Sell My Saratoga Springs Home — But Where Do I Start?
- How a Seller Leaseback Works in Utah County When Your New Construction Isn't Ready
- What to Do When Your Utah County Home Appraises Below the Purchase Price
- Earnest Money in Utah County: How Much, When You Get It Back, and What You Could Lose
- Saratoga Springs Real Estate Market Update: June 2026 Report by Neighborhood
- Eagle Mountain Real Estate Market Update: June 2026 Report by Neighborhood
Sources: UAR Form 18D — Option to Keep Property on Market Time Clause Addendum: Sections 1.A through 1.D, right to accept backup offers, buyer response window, additional earnest money on removal, automatic cancellation, Utah Association of Realtors, revised July 2020; Best Utah Real Estate — Time Clause guide: seller keeps marketing, bump process, 24-hour window recommendation, meaningful earnest money, July 2025; United Agent Services — Time Clause scenario: buyer's two choices when bumped, breach risk if contingency removed and deal fails, June 2020; Utah Realty — Subject to sale domino effect risk, two cancelled contracts, August 2020; HomeLight — Contingent offers: homes averaged 46 days on market January 2026, February 2026; DocHub — Utah subject to sale addendum: 30-90 day deadline range per Utah law.
Written by Kat Ashby, Principal Broker and Realtor® at RootQuest Realty LLC in Saratoga Springs, Utah. Kat holds a Utah Division of Real Estate Principal Broker license (Credential #10382396-PB00) — a designation that requires demonstrated experience, additional coursework, and a separate licensing exam beyond the standard agent license. She has been actively selling in Utah County since 2020, with deep experience across Lehi, Eagle Mountain, Saratoga Springs, and the broader Wasatch Front, specializing in buyer and seller representation, new construction, and corporate relocation through Altair Global. She is fluent in English and Portuguese, earned her bachelor's degree in Psychology from Brigham Young University, and lives in the community she sells in.