Contigency clauses

Abbyllord profile photo

What contigency clauses would you suggest that I put in an offer to purchase form?
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Comments(3)

  • JackS25th June, 2002

    This offer is subject to approval from Buyer's partner.

  • Mark30th June, 2002

    Subject to obtaining favorable financing,Inspection by whoever,and if the property meets or exceeds market values .

  • 10th November, 2002

    Abbylord,

    One thing you might consider is inserting...
    And/Or Assigns, if you are planning to reassign the property, that is unless it is a REO (Bank owned) property...in that case you would need to do a double close.

    Subject to partners approval is good, just make sure you really do have a partner and make a fast effort to have them look at and approve the deal. If you use that phrase and don't really have a partner it is really, IMHO, a weasel clause. Don't mislead the seller. It will eventually come back to bite you! Just be honest.

    If you need an out, state it.

    Another might be...
    This offer is contingent upon the buyers ability to obtain financing from ________
    lenders - See attached Pre-Qualification letter.

    The less contingencies you use the better.
    Try really hard, even if you plan to wholesale, to be prepared to close on the deal yourself if you cannot flip it. That way you won't discourage your sellers or RE Agent. Word does get around if you make contracts or promises you can't keep.

    Best-O-Luck [ Edited by tucsonreclub on Date 11/10/2002 ]

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