When doing a contract with the seller what clauses do I put in the contract with the seller just in case I have to back out to protect myself or can’t find a buyer? Please help thanks
Hi,
These are some common contingencies:
Subject to bank or lender final approval at acceptable terms and interest rate
Subject to satisfactory home inspection
Subject to satisfactory termite and pest inspection
Subject to investment partners approval
Subject to building department verification
Subject to verification of due diligence
These are the most common contingency clauses, however I am sure my fellow investors will add to this.
GR
One of the earliest RE Guru’s that I learned a lot from would put in the clause, Subject to Termite Inspecton. If the inspection came back clean and he later decided he didnt want the house, he would back out with the explanation… I happen to like termites.
In the special clauses of the contract you always want to put:
- Seller must pass free and clear title if not then deposit is non-refundable
- Give yourself 15 days to inspect the property. This will give you enough time to find your end buyer. If you don’t find your end buyer within thosse 15 days you can always back out and get your deposit back.
P.S. You don’t want to make backing out of contract a habit because if so you can develop a bad reputation around town of not being able to close on the property. In this business your creditability is everything. Always make sure when you get a property under contract you can close on it.
To your success :smile
Where do I purchase the contracts and do I handwritten these clauses in the contact!