Contracts to buy with options to back out

[Jason A.]

A few times in the BP podcasts (notably in ep. 327), Adam and Brandon have suggested that they make offers to buy property nearly on the spot often before inspections. They go on to explain their contracts have various buyer-friendly options that allow them to back out of the purchase for various reasons.

Is this type of option common? Do these guys have custom, well-honed contracts for this purpose or are these “off the shelf” standard boiler plate clauses?

Are there examples of these contests available? Do they vary state to state?