Some people out there call them weasel clauses.  But in all actuality escape clauses in a purchase contract can save you in the end.  When you are buying your property and signing the contract or putting in your offer you should always include escape clauses.

If you are submitting a contract with a realtor they will make you use their contract but you still can add escape clauses which you should.

Escape clauses are exactly what they seem.  They allow you to get out of a deal even if a contract is signed.  There are many standard / template contracts out there that may leave you unprotected.  Take a look at your agreements and see if you are protected.

Why use them?   In the event that there is a very big unforseen problem and the other party won’t re negotiate.  If you don’t have escape clauses then you will be in big trouble.

How many clauses?  That is up to you.  You don’t need to over do it on your real estate agreement so that the other party sees 10 clauses that will give them a feeling you’re backing out already.

There are 2 widely used clauses.

And / Or Assigns - This will give you the option to transfer your right to purchase to someone else.  This will allow you to wholesale your property if for some reason you can’t close on the real estate.  A sudden problem in your life or business or the just out of the blue unexpected.  The property is a great deal but before closing you realize you’re unable to close.  Why completely back out of the deal.  Wholesale it for a quick profit and let someone else complete the real estate flip.

Inspection Clause - I use this clause when I submit sight unseen offers.  Have it worded so that the offer is subject to review, inspection and written approval of your associates or partners.  The other party never has to meet your associates / partners.  So this is another way to get out of a deal if you really need to.

Without escape clauses you are leaving yourself very vulnerable.

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