Getting out of a contract may require some work; however, it’s the premature work that needs to be performed if you want to have a smooth transition. The important and smart thing to do is inform the seller beforehand of any prior engagements like meeting with your business partners for the purpose of going over the contract. It would be best to schedule meetings with your business partner at least three days in advance for reasons that would prove to very necessary as business transactions are conducted. Doing this not only shows that you’re proficient in your business but it also shows that you’re well-organized and efficient.
In the real estate business you have what is called escape clauses; whenever one of these is necessary, you would want to utilize a standard or basic state contract with the alteration of certain words that would serve to benefit you. The type of contracts in which you present to sellers could be the determining factor in landing a deal. In certain places; like Florida for instance, they have what is called the Far Bar in which you’re allowed to remove certain information from contracts without being in violation. This is actually done to protect yourself and creates a way for buyers to make up to $1,000 in repairs as well as get the property listed on the MLS. The same principle is also use in cities like Washington D.C., New York and New Jersey.
The contract in which we write up are reviewed by a number of attorneys and have only appeared in court once. They have appeared on the closing tables of at least 250 transactions and it wouldn’t be a surprised if they’re not being copied by others. In any event, escape clauses are very important and we’ll cover the dynamics of them in this particular article, beginning with the items detailed in them.
The reason why they are called escape clauses is because they make a way for escaping out of certain situations or back out of them. There’s always a section in the contract that notes the amount of time in which one has to exercise such procedures. Everything will be based upon the wording. If you’re not familiar with real estate lingo, you will be taken advantage of if you don’t ask questions and seek answers from reliable sources concern the language used in real estate. A prime example is found in the use of “Buyer’s Satisfactory Inspection”. This implies that a “licensed” inspector must inspect the property and submit in writing why such property cannot be sold or is considered unacceptable.
Acceptance in 45 day period is crucial. The fact of the matter is, this is a cutthroat business. Regardless of how nice a person may appear on the surface, no one in this business enjoys losing money. If you’re incapable of sealing a deal in 45 days then this is where “acceptance” comes into play, as it is properly defined as the date the final signature is placed upon the contract. If time permits a “Final Corporate Approval” may be utilized and additional will be allotted for an extension on the contract.
Friend builder clause – whenever a contract is signed, sealed and delivered an agreement goes into motion for the residing tenants to vacate the premises before the closing date. In retrospect, you’re be helping them along the way but nevertheless they are committing to a closing date somewhere down the road after the tenants are out. This way the contract won’t expire on account of them being unable to evict tenants.
Clauses come a dime a dozen in this business and you’re not prepared for them, they can appear from out of nowhere and bite you right in your, you know what.
