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In my last post, I talked about key contract clauses to have when buying property. In today’s post, I’ll discuss key contract clauses to have when selling property.

1. Qualification of Buyer: This seems pretty obvious, doesn’t it? I’m sure it does, but I’m going to include this in our list anyway, and here’s why - your time!

You don’t want to waste your time with someone who isn’t qualified to go through with the deal from the git’ go.

Nothing is more frustrating than finding out that your property has been tied up by someone who doesn’t have a pot to you know what in. The proof is in the pudding as they say. Get it in writing that they have the ability to close. Have your attorney draft a properly worded clause that spells this out.

2. Right of First Refusal: Don’t want to be held hostage to just one buyer once you sign a contract? Of course you don’t. Including this clause in your contracts is, well, sweet!

Essentially, what it does is, in the event that another buyer comes to the table with a better offer, it allows you the flexibility to take an offer while keeping the property on the market to attract additional buyers.

How cool is that? Very.

Of course, the clause would specify the amount of time that the current buyer has to remove the contingency clause and purchase the property, typically, about a week.

3. Limited Inspection: As the seller, you want to limit the time that a buyer has to inspect the property and not dilly dally in doing a complete and thorough inspection.

Why?

Because you are pretty much leaving the door wide open for them to walk out that door for reasons that really don’t amount to a hill of beans. Also, you want to stipulate that the inspection be done by a licensed inspector.

I’m aware that there are other clauses that other real estate investors include in there contracts as sellers, as well as friends of mine, but the three that I’ve listed above are the ones that I am most comfortable with. I also didn’t want to get into a long, exhaustive list either.

However, if you’re looking for a trusted source in educating yourself further about what contract clauses to have as a real estate investor, whether you’re sitting on the buyers side, or the sellers side of the table, here are two great resources, in my opinion:

1. Bob Diamond’s CYA Contract Clauses

2. Bill Bronchick’s Real Estate Lawyer

As I mentioned in my previous post, ethics and integrity should be the guiding force when deciding what clauses to include in your contracts.

Be sure to have an attorney review all contracts before submitting an offer, this is not to serve as, or substitute for, any legal advice.