Finding a way out of a real estate contract may be a bit tricky. However, it is a task that must be completed to ensure a smooth transaction. The wise thing to do is let the seller know ahead of time about any prior engagements that you may have such as meeting with at business partner to discuss the contract.
It is best if you schedule the meetings with your business partners three to four days in advance for reasons necessary to conduct business transactions. This will let people know that you are not only proficient in your particular business, but you are also efficient and well organized.
A Lot Depends On Wording
In the business of real estate investing, we have what is known as an escape clause. Anytime an escape clause is required, you should use a standard contract, altering words to best benefit you. The contracts that you present to your sellers could determine whether or not you land the deal.
In some cases, you may be allowed to take off some specific information from the contract without the risk of violation. This is to protect yourself and it gives buyers a way to earn up to a thousand dollars in repairs and list the property on the MLS.
The reason it is called an escape clause is because it is way to escape from specific deals. You will always find a section in the contract noting the amount of time that you have to take advantage of such procedures. It all comes down to the wording. If you are not knowledgeable of real estate terms, you risk being taken advantage of if you do not ask questions and seek answers in the real estate language. The first investment that you should make is the investment in yourself. Take the time to educate yourself on all things real estate related and in no time you will have more cash flowing in than you ever thought possible.
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Hi Sean,
I think it’s wise to use an escape clause. You should do everything possible to ensure you don’t need one but it’s nice to know it’s there if you need it. You just have to make sure that you double-check everything before the time runs out.
Great article. It definetly pays to have escape clauses to cover yourself incase there is a change of circumstances ie finance falls, property value drops, structural problems are discovered etc etc