How To Get Out Of A Real Estate Contract

[Jared Smith]

Just because you get a rental property under contract, it doesn't mean you have to buy it.

I structure my contracts so that I have several ways to get out, and also get my full earnest money deposit back, if something changes after I get a property under contract.

Below are 4 clauses to include in contracts:

Home Inspection - give yourself 10 days to have a home inspector inspect the property. If you're not happy with something the inspector finds you can renegotiate or cancel the contract.

Financing - If for some reason the bank decides not to fund your loan, you can cancel the contract.

Appraisal - If the house doesn't appraise for the amount that you're buying the house for, you can cancel the contract.

HOA/Condo Docs - usually have a certain number of days to review the rules of the association. During that period you can cancel the purchase for any reason. (Check your state laws before you use this. The HOA/Condo laws vary from state to state. You want to make sure you are familiar with your local laws.)

Of course, I am not a real estate attorney. You should always check your state laws, or consult with an attorney before acting on anything.

-Jared