Whenever you are drafting an offer there are a few things that you want to make sure are not left up to the interpretation of the Seller, especially if you are not using your escrow company. Perhaps the most important one would be the contingencies “escape clauses” you use to get out of the contract before your due diligence has expired. The ones I like to use are as follows:
1. Buyer to have 5 days from offer acceptance to deposit earnest money in escrow.
2. Buyer to have 10 days from offer acceptance to perform due-diligence before earnest money becomes non-refundable.
3. Buyer to have 20 days from bank acceptance to close.
If the bank counters you back stating that your earnest money must go down hard, you can try this one:
4. Seller reserves the right to accept any other offer for any reason until buyer releases their earnest money held in escrow.
This enables you to continue marketing the property without allowing putting your earnest money at risk by making the offer non-exclusive. Normally I will use this one if I don’t have a buyer to replace my earnest money before it becomes non-refundable.
I would recommend only depositing earnest money in your real estate agents brokerage’s escrow or your title company’s escrow account. Make sure you always ensure that the title officer is clear that they are not to release earnest money to the seller until after the due-diligence period has expired, and you will never be at risk. I would strongly advise against depositing earnest money in the bank’s escrow account EVER!
Hope this helps.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Whenever you are drafting an offer there are a few things that you want to make sure are not left up to the interpretation of the Seller, especially if you are not using your escrow company. Perhaps the most important one would be the contingencies “escape clauses” you use to get out of the contract before your due diligence has expired. The ones I like to use are as follows:
1. Buyer to have 5 days from offer acceptance to deposit earnest money in escrow.
2. Buyer to have 10 days from offer acceptance to perform due-diligence before earnest money becomes non-refundable.
3. Buyer to have 20 days from bank acceptance to close.
If the bank counters you back stating that your earnest money must go down hard, you can try this one:
4. Seller reserves the right to accept any other offer for any reason until buyer releases their earnest money held in escrow.
This enables you to continue marketing the property without allowing putting your earnest money at risk by making the offer non-exclusive. Normally I will use this one if I don’t have a buyer to replace my earnest money before it becomes non-refundable.
I would recommend only depositing earnest money in your real estate agents brokerage’s escrow or your title company’s escrow account. Make sure you always ensure that the title officer is clear that they are not to release earnest money to the seller until after the due-diligence period has expired, and you will never be at risk. I would strongly advise against depositing earnest money in the bank’s escrow account EVER!
Hope this helps.
__________________
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125