Ugly Real Estate Contract & Hard Money! Take Cover! Somebody Get The Physician!
Point A Of The Deal
As most real estate investors know, contracts are a “done deal” at the time of offer and acceptance. All parties are liable to fulfill their part of the transaction.. What’s at stake if the real estate sales contract hasn’t been drafted correctly, possibly your “earnest money!”. If the real estate investor have signed a contract without the proper jump out clause prior to submitting the deal and it’saccepted, the real estate investor is stuck with the contract as it’s written.
If you don’t know, real estate contract contingencies are escape hatches in a real estate contract and allow renegotiation in limited areas. They can end the deal without penalty if certain conditions are not met. Typical examples are, buyer ability to get a certain type loan from the financial markets, outcome of property inspections, and estimated costs of projected property renovations just to name a few.
When real estate investors use the appropriate sales contract contingency it’s called an investor’s protection clause (sometimes called “jump out” contingency). It’s the law in real estate real estate investing, and always must used in any real estate purchase agreements.
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So, all that's missing then is CACCP. ( contract acceptance-closing-CASH
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