Contract
Templates & Clauses
Essential checklists, clauses, and timelines to bulletproof your transactions.
*Disclaimer: Always consult your broker or legal counsel for state-specific compliance before using custom clauses.
High-Leverage Clauses
Protect your clients and win multiple-offer situations by using precise, strategically written provisions.
Appraisal Gap Clause (Buyer)
Use this when offering over asking price to assure the seller that a low appraisal won't kill the deal.
"In the event the property does not appraise for the purchase price, Buyer agrees to pay the difference between the appraised value and the purchase price in cash at closing, up to a maximum amount of $X,XXX, not to exceed the original purchase price. This provision is contingent upon Buyer's lender approving the financing structure."
Escalation Clause (Buyer)
Use this to win a bidding war without blindly overpaying.
"Buyer agrees to pay $X,XXX above the highest verifiable net offer received by Seller, up to a maximum purchase price of $XX,XXX. Seller must provide a complete, unredacted copy of the competing offer to Buyer's agent upon acceptance. Net offer shall be defined as the purchase price minus any seller concessions."
As-Is with Inspection Rights (Buyer)
Makes your offer look stronger to the seller while still protecting your buyer's right to walk away.
"Buyer accepts the property in its current 'as-is' condition and agrees not to request any repairs for cosmetic defects. However, Buyer retains the absolute right to conduct professional inspections and may terminate this contract and receive a full refund of earnest money if unsatisfied with the structural, mechanical, or safety condition of the property during the option period."
The "Bulletproof" Transaction Checklist
1. Executed Contract Prep (Day 0)
Ensure all parties have signed/initialed every single page. Verify that earnest money and option fee amounts are correct. Confirm the effective date is filled in (this starts the clock on all deadlines).
2. Title, Escrow & Earnest Money (Days 1-3)
Deliver the contract, earnest money, and option fee to the title company immediately. Request a preliminary title commitment to check for unknown liens, encroachments, or encumbrances.
3. The Option Period (Days 1-10)
Schedule the general inspector, termite inspector, and HVAC tech immediately. Review the report with the buyer. Negotiate repairs or seller credits BEFORE the option period expires at 5:00 PM.
4. Financing & Appraisal (Days 14-21)
Check in with the lender weekly. Ensure the appraisal is ordered and completed. If the appraisal comes in low, immediately begin negotiations (price drop, appraisal gap, or challenge the appraisal).
5. Clear to Close (Days 25-30)
Receive the 'Clear to Close' from the lender. Review the Closing Disclosure (CD) to ensure commissions, concessions, and fees are correct. Schedule the final walkthrough 24 hours before closing.
Special Stipulations & Addendums
Common Addendums You Must Know
- Third-Party Financing Addendum: Always ensure the days for buyer approval accurately reflect the lender's timeline. Defaulting to 21 days can be risky in a fast market.
- Seller's Temporary Lease Back: When the seller needs to stay in the home after closing. Ensure daily rental rates and holdover fees are clearly defined.
- Lead-Based Paint Addendum: Federally required for any home built prior to 1978. Do not miss this, or face severe fines.