Bump Clauses 101
You've set up a lame date for the upcoming weekend but you're hoping a better offer comes along. If one does, you're ready to accept it and cancel your earlier date. You're hedging your bets, so you won't be sitting home alone on Saturday night.
That logic applies to real estate transactions as well. Perhaps you've received an offer for your home that's disappointing, but you expect a better offer to come along. Maybe you want to make an offer on a home but you need to sell your existing home to make the deal work financially.
In the real estate world, you can address these issues with a bump clause.
A bump clause in a real estate transaction adds a contingency that one party must meet before the sale can be finalized. Bump clauses get their name because the clauses give the seller the right to accept another offer and "bump" the original offer if the buye...
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