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What Are Real Estate Escape Clauses?

Wednesday, April 13, 2022   /   by Tara Turner

What Are Real Estate Escape Clauses?

Most real estate contracts contain contingency clauses that allow the buyer or seller to end the transaction without a penalty if certain conditions cannot be met. These are commonly referred to as escape clauses. Here are the three most common real estate contingencies that include escape clauses. 

A home inspection contingency gives the buyer the right to have the home inspected within a specified time period. This protects the buyer by allowing them to cancel the contract or negotiate repairs based on the findings of a professional home inspector. 

A financing clause stipulates that the offer is contingent on the buyer obtaining financing on the property within a set period of time and delivering a written loan commitment to the seller. 

In cases where the buyer must sell their current home first, a home sale contingency gives the buyer a specified amount of time to sell and settle their current home to finance the new one. 

Escape clauses protect both buyers and sellers. Consult your Realtor to ensure that the appropriate clauses are included in your agreement. 

If you have any questions relating to buying or selling a home, please give us a call at 909-255-1070.

Mitchell Stein License# 02081632

Stein Team Realty - Keller Williams College Park
Mitchell Stein Dre# 02081632
2440 W Arrow Route #5C
Upland, CA 91786
310-770-4121
DRE# 01885348

Based on information from California Regional Multiple Listing Service, Inc. as of May 22, 2022. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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