Below are some important clauses to put in your contracts when buying houses: Read Carefully!
I get asked the following question a lot...
"What clauses do I put in my contracts in order to secure a deal
without any risk."
Obviously, this is important because as a real estate investor
(especially if you're new) you need to know how to secure a deal
without putting yourself at risk.
So the following clauses are what I feel to be the most
"overlooked" clauses that investors fail to put in their contracts.
These clauses also allow the investor to get out of the deal
without risking anything as well.
Also, keep in mind that these clauses are only going to work for
private owned seller deals. The clauses will change with bank
owned REO deals.
Here they are:
1. Subject to Inspection and Approval- Most contracts already have
an inspection clause, but you want to make sure you get this clause
in there as well. This will protect you further when purchasing a
2. Subject to Appraisal Acceptable to Buyer- You want to have this
in your contract in order to allow you some time to get some real
comps on the subject property. If the comps come in lower than
expected, then this is your scape goat.
3. In event of buyers default, deposit is sole remedy- This is to
make sure you don't get sued for specific performance if you don't
close the deal.
This is VERY IMPORTANT when you are making All Cash Offers.
Use these clauses in addition to your other clauses in your
contracts when purchasing. Trust me, they will save you a lot of
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