David Saks: July 2014

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 3479

weasel

We're not talking about funny little furry,  creatures here.

We're actually talking about a little paragraph that you could actually insert into the body of your contract that could help you break the deal.

You might consider the weasel clause an obscure conditional statement that allows you to back out of a contract anytime prior to closing the deal.

Even though it might not be your intention to back out of the deal, with a weasel cluse you retain the option right up until the time your ready to sign the closing documents. Isn't that nice ?

With a weasel clause, you might even be able to have the earnest money deposit returned to you in case you decide to back out of deal or change your mind at some future date.

Here are a few examples of weasel clauses that you might find interesting:

1. The contract is subject to adequate financing by the buyer. Adequate financing can be whatever you want it to be, including 100% of the purchase price. Some ruthless buyers might even go so far as to weasel up to 200% of the purchase price. How about that for ruthlessness ?

2. How about this one ? This contract is subject to my partner's approval. And just who in the heck might that partner be ? Why that partner might be your mother-in-law or your science teacher, or nobody for that matter. Hmmmmm???

3. What about, subject to the political climate of the neighborhood ? If you find out your neighbor is a democrat or republican and you don't like their party affiliation it seems like you might be able to back out of the deal with a ridiculous weasel clause of this variety.

4. How about, subject to the absence of squirrels on the lawn ?

5. What about, subject to an appraisal paid by either party, such as the buyer or seller. If your the buyer and you include this clause and include that the contract is subject to an appraisal to be paid for by you the buyer, and you decide not to have the appraisal performed, you can kill the deal.

I know that some of these clause are more than ridiculous, however, they can be real and become the substance of a valid contract and also give you the option, and possibly the peace of mind, that you have the right to back out of deal anytime before you get to the closing table.

Chime in legal experts. what are your thoughts about the weasel clause ?




David Saks



Time&Temp Memphis

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Comment balloon 0 commentsDavid Saks • July 12 2014 11:27AM
Real Estate Practice : Lesson 3479
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