Clause Language and Information about Multiple Offers, Escalation Clauses, Closing Costs, Consent to Disclosure and more!
Additional Resources are available including sample language and addenda at:
https://www.keyeducationonline.com/ > Multiple Offers Course (Login and click on course library)
Seller Paid Closing Cost/Concessions
If your buyer is requesting that the seller pay some of their closing cost, you may add this to the Purchase Agreement under Additional Terms:
"Seller to pay buyer's closing costs, pre-paids and miscellaneous fees, not to exceed __% of the purchase price."
Or
"Seller to pay buyer's closing costs, pre-paids and miscellaneous fees, not to exceed$__."
The FHA currently allows a maximum seller contribution of 6% of the purchase price.
Due Diligence:
Property is being sold subject to a Due Diligence Period of ______ days from the Binding Agreement Date.
Option Payment for Due Diligence Period:
In consideration of Seller granting Buyer the option to terminate this Agreement, buyer shall pay seller $_________ in non-refundable option money, the receipt, and sufficiency of which is hereby acknowledged; plus buyer shall pay Seller additional option money of $_________ by
___ check or
___ wire transfer of immediately available funds either
___ as of the Offer Date; OR
___ within _____ days from the Binding Agreement Date
Any additional option money paid by Buyer to Seller:
___ shall be applied towards the purchase price at closing,
(subject to lender approval)
___ shall not be applied toward the purchase price at closing
and shall not be refundable to the buyer unless the closing fails to
occur due to the default of the seller
Escalation Clause:
Contract Price to be [insert number, e.g. $500.00] higher than the highest bona fide offer, net of concessions, received by Seller, not to exceed [insert cap number, e.g. $5,000.00].
The parties intend this agreement to be a binding contract and not an offer to enter into a contract at a later date. The price determination will take place as set forth herein, but the fact that the price is not
determined as of the time this contract is fully executed by both parties shall not defeat the existence of a contract.
Listing Firm to provide Selling Firm with a copy of the next highest bonafide purchase agreement offer.
Closing Date – Seller’s Choice (.pdf Download)
Seller shall choose closing date that is convenient for seller to be any weekday date between 00/00/00 and 00/00/00, not including any state, federal or bank holidays. Seller shall name desired closing date in writing no later than (SPECIFY deadline for seller to name date). If seller does not name desired date in writing by deadline specified, buyer shall name buyer’s preferred date within two days of deadline specified.
Contemporaneous Offer Notice (form is available in the Dotloop Templates)
This is to inform you that another buyer that I represent has also written an offer to purchase the property located at ______________________________________.
Neither the terms of your offer or your identity will be disclosed to this other buyer.
If you prefer to be represented by another licensee, I can refer you to another agent or broker. Please contact me if you would like such a referral.
Appraisal Guarantee Clause
Appraisal Guarantee: Purchaser agrees to pay $XXX above the appraised value not to exceed the Purchase Price of $XXX.
If the Appraisal Guarantee is not sufficient to satisfy the appraisal deficiency all parties agree to negotiate in good faith to reach a satisfactory resolution.
If a satisfactory resolution cannot be achieved Seller may declare this agreement null and void and all Earnest Money shall be returned to Purchaser.
Appraisal/ Gap Financing
In the event, the appraised value comes in below Purchase Price, then Buyer agrees to pay up to $__________ over appraised value not to exceed the purchase price. Any such cash differential shall be applied to Buyers`required Cash at Closing.
TAGS: verbiage, contract verbiage
Home Sale Contingency
“Transaction is contingent upon the successful closing of buyer’s current home at 123 Main St, to be listed on X/X/X, in contract no later than X/X/X and closed on or before X/X/X.”
“Transaction is contingent upon the successful closing of buyer’s current property at 123 Main St (MLS#), currently listed, to be in contract no later than X/X/X, and closed on or before X/X/X.”
“Transaction is contingent upon the successful closing of buyer’s current property at 123 Main St (MLS#), currently listed, in contract and scheduled to close on X/X/X.”
“Transaction is contingent upon the successful closing of buyer’s current property at 123 Main St (MLS#), currently listed, in contract & past the inspection, remedy & appraisal periods, and scheduled to close on X/X/X.”
Radon Mitigation
"Seller to install radon mitigation system using contractor acceptable to all parties. Follow up radon test to be completed at seller expense. Test results to be delivered to purchaser within x number of days. Mitigation and test to be completed prior to closing. Purchaser will verify completion during the final walkthrough."
Lancaster Ohio Campgrounds Required Clause
LANCASTER CAMPGROUND 8/25/2022. Additional Terms and Conditions: The parties understand that this transaction involves a campground property where the Seller does not own the real estate but only owns and is entitled to sell the cottage and contents as personal property. The real estate referenced here is solely a leasehold interest under a 99-year lease with the campground with applicable fees and ongoing lot rent. This contract is contingent upon the Buyer being approved by the campground as a tenant, whose obligations are further contingent upon approving the campground's lease terms, conditions, and rules and regulations. Section 8 is modified to remove the reference to a deed and fee simple transfer but substitute therein a bill of sale for the cottage and contents from the Seller and lease with the campground. Section 9 is modified to remove the reference to any owner’s or homeowner’s commitment or policy but substitute therein a leasehold commitment and policy.
Backup (Secondary) Offer Clause(s)
Sellers are presenting this counteroffer as a back-up (secondary) to an existing purchase contract which shall be referred to as the “primary contract.” The terms of Buyer’s offer are accepted with the following modifications and/or additions:
1. Sellers are presently in contract. This counteroffer, if accepted by Buyers, shall be a back-up (secondary) contract to the existing primary contract, which is scheduled to close on or before ___________. If for any reason, the primary contract is terminated, Sellers will provide written notice to Buyers and upon delivery of that notice to Buyers’ agent, they will be considered the primary contract.
2. Sellers reserve the right to make modifications and/or additions to the terms and conditions of the primary contract, which shall not in any way affect Buyers’ position as the backup (secondary) contract. The Buyers’ deposit check shall be due and payable within 24 hours of Buyers receiving written notice that they have moved from backup (secondary) position to primary position.
3. All time periods specified in the contract regarding inspections will not begin until Sellers deliver to Buyers written notice that they have moved from secondary positions to primary position.
4. The Buyers acknowledge that they are the backup (secondary) contract, however, they reserve the right to terminate this contract without any liability any time prior to their receipt of written notice from the Sellers putting them in primary position.