Easily Insert Alternative Choice from the Sales Contract

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How to Insert Alternative Choice from the Sales Contract

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okay lets get rolling here welcome today were going to be reviewing and going over the as is residential contract some of the best practices builds and clauses in here that can really impact your transaction as far as being likely to be accepted and even going further than that more likely to actually close and go through so as we go along if you have questions raise your hand if youre tuning in online simply chat in the box Tommy if you have any questions please chat them in the Box the comment field or raise your hand here and we will go through them so lets just get running straight through it as you pull up the as-is contract it is the most commonly form of sales and purchase contract utilized in our marketplace in Florida this is a standardized form that has been created by Florida Realtors for us created by the attorneys and remember that our ability to actually complete this form is to fill in the blanks we cannot write a unique contract we must be able to fill in the blanks

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What happens if a backup offer is made on a property when a kick out clause is in effect?

The compromise is the kick-out clause allows the seller to kick out the first buyer should another buyer come forward. It is also referred to as an active kick-out clause. If a seller gets a backup offer with better terms and wants to accept, they need to notify the original buyer with the accepted contract.

What is a 3 day bump clause?

The bump clause allows the seller to accept another offer, so long as the seller notifies the original buyers and sees if they will waive their contingency. If not, the buyer accepts the new offer and the first buyer receives the payment they put down.

What is paragraph 5 of the TREC contract?

FAILURE TO TIMELY DELIVER OPTION FEE: If no dollar amount is stated as the Option Fee or if Buyer fails to deliver the Option Fee within the time required, Buyer shall not have the unrestricted right to terminate this contract under this paragraph 5.

What is a kick out clause?

What is a kick out clause and how does it work? A kick out clause is called that because it allows a seller to continue showing the house for sale and to kick out the buyer if the seller receives an offer from another buyer without a home sale contingency.

How do you write 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.

What is paragraph 6 of the TREC contract?

Paragraph 6C of the One to Four Family Residential Contract (Resale) (TXR 1601) includes requirements for property surveys. This paragraph requires that the survey must be prepared by a registered professional land surveyor acceptable to the title company and the buyers lender.

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.

Are kick out clauses common?

Kick out clauses are actually more common in buyers markets than sellers markets because buyers markets can leave houses on the market for a long time without a sale, so sellers do their best to avoid that by not interrupting their marketing efforts.

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