Need explanation of "escape clauses"... - Posted by Charity

Posted by Vic on May 16, 2000 at 05:40:28:

Charity,

Are you using a purchase agreement that you created or one from another source? If you’re using either of those, I’d reccommend that you obtain a purchase agmt. from a real estate agent or title co. & you’ll see that it probably contains the financing contingency clause that you are looking for.

If it doesn’t, then you’ll want to insert a clause along the lines of - This offer is subject to buyer being able to obtain a loan or loans in the amount of $________, at an int. rate not to exceed ________ amortized over a period of not less than ______ years. ___Buyer _Seller (check one) agrees to pay origination fee not to exceed points & discount points not to exceed points. Should buyer be unable to obtain loan specified above then this purchase agmt. is null & void & any deposit is to be refunded to buyer.

If there are any other clauses unique to you situation, just add them in.

Hope this helps,
Vic

Need explanation of “escape clauses”… - Posted by Charity

Posted by Charity on May 15, 2000 at 20:35:40:

I asked a few questions in recent weeks about what to do if I put a house under contract and cannot get financing for some unlikely reason. Many of you said to include an escape clause. Can you give me examples?

Thanks!
Charity

Re: Need explanation of “escape clauses”… - Posted by Rob FL

Posted by Rob FL on May 16, 2000 at 08:15:12:

Use the standard REALTOR’S contract for your area if at all possible. It should contain the 3 most common contingencies: financing, property inspection, and marketable title.

Use an addendum to weigh the contract in your favor. Those 3 contingencies should protect you if they are worded correctly.