Can i get my earnest money back from the seller with a Continency clause Example:Final purchase subjected to the approval of my partner.” i would love some good advice. thank you
Yes,
But why did you “give it” in the first place ? Just try getting it back when your seller thinks your partner should have agreed with the purchase.
Use subject to acceptable title report
subject to buyer qualifying for a new loan acceptable to buyer
If using final approval of partner and you can’t explain to seller who or where and what your partner is looking for then it screams first time buyer.
If it were me I would use a 10 day inspection clause with your earnest money due upon release of the inspection clause. An inspection clause from my experience makes for a far better looking offer than a financing clause.
A financing clause works, but it has some limitations in a multi offer situations and many sellers, realtors, and asset managers will laugh at them as well. If you look through the eyes of a seller in a finaning clause situation it becomes very clear that it makes no sense. You are essentially saying hey Mr.Seller I would like to tie up you home under contract, but I am not even sure if I can obtain financing.
If I were a seller it would make perfect sense to me if someone put in a contract subject to a plumbing, electrical, pest, inspection within the next 10 days. It would be far more acceptable to me because, as a buyer you know nothing about the house, so of course your going to want to inspect it. It also provides a great way to get buyers through, because they become your “contractors”.
Even if financing is your issue, the inspection clause works just as well. If you financing falls through during your inspection clause then you can tell them that you didnt approve of a small crack in the basement wall.
I have bought and sold 40+ foreclosures and almost everyone of the banks allows a certain period for inspection in their C.Y.A addendum. If I were to try to tell them I wanted to put the home under contract without having financing lined up they would have laughed me back to kansas.
How does the ten day inspection clause work? Is it basically (paraphrased) “I have ten days to get an inspection, and if I dont the contract is void.” Or is it “I have ten days to get an inspection, and the inspection must not turn anything up I dont like”
I agree Eric,
Inspection clause first. I do my inspections at first viewing, so I usually don't need the clause. Although It is automatically part of the EM agreement. After many years I find it much easier to purchase homes. As you know your presence and demeaner with your sellers by it self can usually get the deal done. Still keeping the clauses of course,
From Kansas, Darin