Easily Hide Words from the Real Estate Contract

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How to Hide Words from the Real Estate Contract

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Hey yall. Bob Brennaman back with you today with another section of REAL ESTATE MINUTES WITH BOB. And this is where we cover questions I get asked a lot. Weve been meaning to do these for a while, but weve been so daggum busy that we have not had an opportunity to, so today Im sitting down and were just going to work through my list. And one of the questions at the top of my list is kick-out clauses. Kick-out clause in a real estate contract generally deals with the sale of another property being tied to the contract on the house. I guess the easiest way to explain would be to give you a scenario. Say yall come to town, we go and find a house you like and you want to put a contract on it, but you havent sold your house yet. In somedepending on the market, whether its a buyer or sellers market we could write a contract with a sale of contingency which would mean that you would have the opportunity to get your house closed and then you know to buy

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What is an example of a contingency on a house sale?

CONTINGENCY: This offer is accepted contingent upon BUYER selling their real property located at (Address) (City) , with in days (contingency period) from acceptance of this offer, or any written extensions thereof signed by BUYER and SELLER.

What is a common contingency clause?

Contingency clauses provide a way for one or both parties to back out of a real estate contract if certain specified conditions are not met. In other words, the sale is contingent upon these conditions.

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.

What is an example of a contingency clause?

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.

How do you write a contingency clause in a contract?

A contingency clause should clearly outline what the condition is, how the condition is to be fulfilled, and which party is responsible for fulfilling it. The clause should also provide a timeframe and what happens if the condition is not met.

Whats the purpose of the earnest money deposit?

Earnest money has become standard, especially in todays competitive real estate markets. The purpose of earnest money is to tell the seller that youre serious about purchasing the home. By backing up your offer with some cash, a seller is more likely to trust that youll follow through with the home purchase.

What is a clause in real estate?

Also known as conditions, real estate clauses make your purchase contingent on specific criteria. If they arent met, you can back out of your deal without consequences. Its a form of protection against worst-case scenarios.

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