Written
agreements are sacred legal documents in real estate as well as in any other
business. They contain all of the information regarding deal, loans and the
property. When one is going to design the contract, it is necessary that he
must include clauses that can allow you safe exit at the time when you are
willing to end the contract. There are various reasons why one wants to end
their real
estate contract;
here we will discuss a safe exit and clauses of the contracts in the light of
statements and information shared by Dean Graziosi.
Before
we proceed with our topic, it is better to introduce Dean
Graziosi
first. Dean Graziosi is a successful entrepreneur, a bestselling author and a
millionaire. He has published a number of books and conducts live seminars on
real estate throughout US. He is one of the most famous real estate personalities
nationwide.
When
Dean delivers his sermons in a soft and convincing tone, many people are
attracted towards his program. He is a humble down-to-earth personality. He
lives with his wife and two kids at Phoenix Arizona. He has an experience of
about 20+ years in real estate. With such a vast experience comes great
responsibility. Dean is teaching novice and real estate aspirant tricks and
tips of becoming successful.
Dean
believes that getting out of a contract is quite tricky. When it comes of
getting out of the contract, you must set things ahead of the time. Following
are given a few things that you must do before arranging a meeting to sign the
contract with seller.
- Organize a meeting with your business partner (if any) three or more days before the due date.
- Discuss thoroughly all of the clauses and sections of contract with your business partner.
- Pitch the property to wholesale list.
- Do any pending due diligence work including rehab or rental.
- Always use a standard State contract for each and every of your agreement.
- You can alter escape clauses’ words of the contract in your favor.
- The changes must be according to the State law, as there are 100% chances that attorney’s of the sellers will view your contracts.
Clauses of the Contract:
- In most of the contracts, the ability to back out due to any reason is stated after passing 20 days. The wordings in the contract matters a lot. You can see in most of the contracts it is stated as “Buyer’s Satisfactory Inspection”. The standard clause on contracts also urges the buyer to have a “licensed” individual inspect the property and in written submit why the property is not acceptable.
- Another clause, “Forty Five Days from Acceptance”. Acceptance is defined as the date of final signature on the contract. If you need to extend said period of time, you can sign the “Final Corporal Approval” and extend the last date.
- In most of the contracts, there is a tricky clause. It states that by signing the contract they are agreeing to get tenant out of the house before closing. In this clause the builder is committing to a closing date in future, depending on “when the tenants get out”. What if they are unable to get the tenants out until that date? Would the contract be intact even then?
- The preliminary and final corporate approval will only hold up in court if you sign above mentioned final corporate approval on every contract.
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