Real Estate Clauses

One of the most important clauses on today's real estate contract for purchase and sale is the ESCAPE CLAUSE.  This clause gives YOU the seller, the opportunity to look at, and negotiate other offers while waiting on a current conditional offer to come together.

For Example:  Buyer A puts in an offer on your home.  You agree on price and conditions, but, the Buyer has a house to sell of his own before he can purchase yours.  The Buyer would have a clause similar to "This offer is conditional upon the sale of the buyers property at 1234 Memory Lane. 
Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than _____ p.m. on the _____ day of __________, 20_____, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.

The problem with this clause is that it could be a lengthy one, and that "ties" up your property.

A diligent Seller's agent would then insert the ESCAPE CLAUSE.

Provided further that the Seller may continue to offer the property for sale and, in the event the Seller receives another Offer satisfactory to the Seller, the Seller may so notify the Buyer in writing by delivery to the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto. The Buyer shall have (usually 24-48) hours from the giving of such notice to waive this condition by notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto, failing which this Offer shall be null and void, and the Buyer’s deposit shall be returned in full without deduction.

When your second offer comes in (if you are lucky to get one) and you have the escape clause, be sure that the "Release from previous offers" clause is included on the second offer!

Clauses, Clauses, Clauses....this is why you hire a professional REALTOR!