What Are Your "Must Have" Clauses?
Hi guys,
I'm new to the rehabbing game and I'm doing my best to get my business in order.
I'd like to meet with a lawyer in the next week to have him/her review my contracts, purchase agreements, etc.
Since many of you appear to be seasoned professional, it would be helpful to know what your "Must Have" clauses are. What clauses would you never do without on your contracts? What clauses aren't necessarily "Must Haves' but are nice if you can get them agreed to?
Thanks for helping out a new guy.
Brett
Hi and welcome Brett,
Truly the answer to your questions will be found throughout the forum, I would suggest doing a search throughout TCI.
Clauses used in contracts are based upon the type of property, the type of deal, who the lender is and if it is a government backed loan.
Some of the most common clauses are:
And or assigns
Subject to partners approval
Subject to inspection
Subject to keys before closing
Subject to move in condition
I make all cash offers, so I don't have any.
I realize I'm the new guy but you're telling tht just because you use "all cash" that you don't use any contracts through thr buying or selling phases? No contracts with your contractors or subs?
Quote:
On 2004-08-13 11:11, GRGLA wrote:
I realize I'm the new guy but you're telling tht just because you use "all cash" that you don't use any contracts through thr buying or selling phases? No contracts with your contractors or subs?
No thats not what I said.
You asked what clauses I put in my purchase contract.
I use a contract but it has no clauses in it. It shows the seller that I am serious.
i pay cash but i always use an escape clause. usually sud2 to fin. approval that way if something hidden appears i have a back door. it is exceptable in my area. i have read on the west coast that they mostly don't do it because it is so competitive. i have never lost a deal because of it. i have been able to stop a deal to look into it futher and get the results that i needed and then close. some do, some don't, it's what works for you.........kenmax
I like a "weasel" or escape clause just in case after a second look it doesn't look so good. Assigns is a good one as well. I would find a standard contract that has many clauses already pre printed and add to it. Generally however, if you don't understand it they won't either
I think it has to do with your level of confidence. I know some investors that take a tape recorder to closings to make sure everything is clear and there is a record....
[addsig]
Great, great stuff guys. Thanks a lot.
All advice is welcome and appreciated.