OfflineOk I found a couple of places where people were talking about exit clauses, but they would get so far off base talking about something else I could not find what I needed.
I am going to talk to my attorney today and I want to have all of the contracts drawn up before hand so that I can show him what I am doing with the Assignment of Contract. I have seen people talking about exit clauses that they have used to protect themselves. Can any one please provide an actual example of the exit clauses that they used in their own contracts?
Thanks!
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There are clauses that you can put in such as subject to partners approval, contingent to a home inspection, or something like that. You should have and or assigns written in the contract so that you can protect yourself.
Jeremy
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As Jeremy has stated. Any of those can be used at any situation if needed. It is usually used when ever you have concerns to that particular transaction. A assignment offer must state that you have the right to assign, what ever property you are doing at that time, to a buyer. Subject to this etc. Continued success........Lubertha
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One potential problem with using exit clauses is if you use one that prevents you (the buyer) from being bound by the contract, such as "subject to approval of my business partner" or "subject to buyer's approval of_______inspection". In such a case, the seller might be able to have the contract thrown out, making the point that that since the buyer wasn't really bound by the contract, the seller shouldn't be bound by it either.
Exit clauses that are safe to use are ones that are outside of the buyer's control, such making the sale contingent on the house passing the home inspection, getting financing, etc.
And keep in mind a seller could potentially fix those things by making repairs or offering to help with the financing.
Here is what I use with my re agent when placing offers. stated in the contract: "earnest money/initial deposit due within 7 days from acceptance, or this conract is null and void"
That gives me the time to present the property to my buyers, I always have my buyers already lined up but there is always a chance the deal will not go through.
What doesn't kill me,,makes me stronger!
how are these contingencies included in the contract? im aware of all of them you mentioned, but i dont know how to include them in the contract, do i just write them out just like you have it in the purchase agreement?
Another approach to the exit clause "subject to inspection and buyers approval" is that you can back out for any reason based on your approval. ie, I was looking for three burnt out light bulbs, The paint did not glow in the dark, etc. This is kind of a catch all get out of jail free clause that I picked up from a very good RE agent. You should limit the number of contingencies as they can turn a seller away from the deal.
Buyer's approval of the inspection implies that it is reasonable, so if you try to use it as an escape clause, you could lose your deposit. I read about a case where the seller kept the earnest money deposit and the buyer wasn't able to get it back in court because the court deemed that the inspection results were reasonably acceptable.
It appears you have received some good advice and some good points already. You can include several contingencies in the purchase agreement. Remember you are the author of your offer and you can include anything that you want. A contract is seen as a meeting of the minds. Thus, if 2 parties agree and sign the contract, I believe it would be enforcable. Most sellers want to sell their property and most buyers just want to buy a property. Your attorney can provide some additional legal insight, advice and guidance. Good luck with your future deals. Believe and Achieve!
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Is it or not,Exit clause protects buyer! The only thing i can think of different:Sacrifice contendant for deep discount!!!
When you have something (GOOD)as long you have done (check it out),Make the deal happen fast (CASH).
With a good lawyer,Any contract could be considered (Invalid) with clause!
This is all about buying and selling Real Estate with positive, Not negative GAIN.
Invest in yourself!
Burnt out light bulbs and paint that did not glow in the dark was a feeble attempt at a joke, sorry folks. Yes, a reasonable inspection flaw is required and with a good inspector you can usually find such a flaw.
Joe is right on about the contingencies, I just brought the point up because every RE agent I have dealt with has pushed for limited contingencies based on fear of pushing the seller away. Granted, they do not make up an overall consensus. I would like to know if others experience the same negative response from RE agents on contingencies.