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

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


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,

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?


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.