Easily Hide Words from the Commercial Real Estate Contract

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How to Hide Words from the Commercial Real Estate Contract

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hey guys so today i want to show you how to write a commercial contract okay so if youve been asking yourself am i allowed to do commercial deals the answer is yes you can do a commercial deal with the license you have the same one you use to do residential um so if you get a commercial deal uh you know feel free to work that deal or get some help on working that deal i want to show you how to do this simple contract there is a simple contract in transaction desk that you can use for a commercial deal one thing i will tell you is if it happens to be that you land some major deals such as a shopping center or shopping mall or something that is kind of a little bit bigger and outside traditional um you know single office building or whatever the case may be or a single industrial property uh you might actually want to have a lawyer involved for that buyer that will write a specific contract because there are just certain things about um you know bigger properties more complex properties

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What is the purpose of a mortgage contingency clause?

A mortgage contingency is a clause in real estate transactions that gives home buyers a timeframe to secure a mortgage loan for a home. If the loan cant be secured, the buyer can walk away without legal repercussions and have their earnest money deposit returned.

What is a kick-out clause?

A kick-out clause is a provision in a homes sales contract that allows sellers to accept a contingency while still showing their home in hopes of receiving a non-contingent offer.

What is an example of a 72 hour kick-out clause?

Heres an example: Lets say a buyer puts down an offer for $160,000 on a home and another buyer comes along a week later and offers $190,000 instead. If a 72-hour clause has been written into the contract, the original buyer now has 72 hours to make a better offer than $190,000.

What is the contingency clause in a contract?

A contingency clause is a contract provision that requires a specific event or action to take place in order for the contract to be considered valid. If the party thats required to satisfy the contingency clause is unable to do so, the other party is released from its obligations.

What are examples of contingencies?

A contingency is a potential occurrence of a negative event in the future, such as an economic recession, natural disaster, fraudulent activity, terrorist attack, or a pandemic. In 2020, businesses were hit with the coronavirus pandemic forcing many employees to have to work remotely.

What is a contingency clause?

A contingency is a clause that buyers include when making an offer on a home that allows them to back out of buying the house if the terms of the clause arent met. Without a contingency in place, buyers risk losing their earnest money deposit if they decide not to purchase the home after making an offer.

How do you write a contingency clause in a real estate contract?

A contingency clause often states that your offer to buy property is contingent upon X,Y, Z. For example, the contingency clause may state, The buyers obligation to purchase the real property is contingent upon the property appraising for a price at or above the contract purchase price.

Why would a buyer choose to use a contingency?

A contingent offer on a house is an offer with a protective clause on behalf of the buyer. The contingency communicates that if the clause isnt met, the buyer has the right to back out of the purchase. This practice protects the buyer from: Losing earnest money.

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