Escape Clause

[shortsaleking]

the escape clause needs to go on the purchase and sales contract. I usually put " this is subject to business partner’s approval. "

[idhomebuyer]

:shocked :shocked ~ I had to doubletake that. Are you doing this on foreclosures listed with agents, & bank reo’s? Have you tried the contingent on finding a buyer clause with FSBO’s and does it work? If so, what do you tell them? Thanks, Bennett.

@Bennett Nic post:13

I don’t pay an earnest money deposit if at all $100 tops. I wholesale REO"S using realtors, telling them upfront what I’m doing. Make sure contract is assignable, and always have contingency clause stating purchase of this property is contingent upon finding a buyer.

[mronhifi123]

Thanks for the suggestions.

[James082]

The “subject to partners approval” and financing conditioning are good clauses. I usually use an option. I am straight forward with the sellers about the option and even have language that states that the option can be extended by x days for $x and the money is to be paid at closing.

[xpandergt]

I use to rely mainly on the inspection clause as my out, but now I mainly use the financing clause. Most home owners know that the banks are much stricter on their lending then they were during the boom times. Using the financing clause is also the best way to try and get a price reduction on the property if you can’t find a buyer at the current price.