I doubt it's legal, couldn't be used, but if you don't disclose it to anyone I wouldn't see the harm.

Well, at least it shouldn't do any harm I guess.

This way if you don't find a buyer in a week or two its no harm no foul and you walk away.

On the other hand, what is the harm in giving $250 in EMD for homes in CA that are worth $300k or often much more?

Is it a five day pay or quit notice....my worst fear is that he will try and keep the lease term and will harm the house once he is inside which is why I am giving him what I think is an inexpensive out since my experience is most least break fees are two to three month's rent.

My concern is that I don't want to open something that can potentially harm me. 

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

But the often shady and unethical practices from the majority can undermine the credibility of the wholesaler and harm the parties involved in the transaction.Enough of an outcry over the years by people that have been defrauded, has initiated  changes to the legality and abilities of a wholesaler to sell without owning a portion of the property for a certain amount of time or limiting the amount of transactions you are able to have without a real estate license. 

He has not threatened to do harm to me personally, but behaves aggressively and threatened to be my enemy.Also- I did a background check...$40 and nothing came up, though the police screen listed things when I went to see them.

After all the educational substance is what makes this forum so great.