Getting out of a contract may require some work; however, it is the early work that needs to be done if you want to have a smooth transition. The smart and important thing to do is to inform the seller in advance of any previous commitments, such as meeting with your business partners to review the contract. It would be best to schedule meetings with your business partner at least three days in advance for reasons that would become very necessary as business transactions take place. Doing this not only shows that you are competent in your business, but also shows that you are efficient and well organized.

In the real estate business you have what are called escape clauses; whenever one of these is necessary, you’ll want to use a standard or basic state contract with the alteration of certain words that would serve to benefit you. The type of contracts you feature sellers in could be the determining factor in closing a deal. In certain places; like Florida for example, they have what is called the Far Bar where you are allowed to remove certain information from contracts without violating them. This is actually done to protect yourself and creates a way for buyers to earn up to $1,000 in repairs as well as get the property listed on the MLS. The same principle is also used in cities like Washington DC, New York, and New Jersey.

The contract we wrote on is reviewed by multiple attorneys and he has only appeared in court once. They have appeared on the closing tables of at least 250 trades and it would not be a surprise if others did not copy them. In any case, escape clauses are very important and we will cover their dynamics in this particular article, starting with the detailed elements of them.

The reason they are called escape clauses is because they open a way to escape from or out of certain situations. There is always a section in the contract that indicates the amount of time in which one has to carry out said procedures. Everything will be based on the wording. If you’re unfamiliar with real estate jargon, you’ll be taken advantage of if you don’t ask questions and seek answers from reputable sources about real estate language. A good example is found in the use of “Buyer Satisfactory Inspection”. This means that a “licensed” inspector must inspect the property and present in writing why the property cannot be sold or is considered unacceptable.

Acceptance within a 45-day period is crucial. The fact is that this is a cutthroat business. Regardless of how nice a person may seem on the surface, no one in this business likes to lose money. If you can’t close a deal in 45 days, this is where “acceptance” comes in, as it is correctly defined as the date the final signature is placed on the contract. If time permits, a “final corporate approval” may be used and an additional contract extension will be assigned.

Builder Friend Clause: Every time a contract is signed, sealed, and delivered, an agreement is put into effect for resident tenants to vacate the premises before the closing date. In retrospect, you’ll be helping them along the way, but nevertheless, they’re committing to a closing date sometime after the tenants have left. In this way the contract will not expire for not being able to evict the tenants.

Clauses come in spades in this business and you’re not prepared for them, they can come out of nowhere and bite you right in your, you know what.