Please note that these clauses are provided by Michigan Association of Realtors. Use the following disclosure if using any alternate clauses.
https://www.mirealtors.com/Portals/0/Documents/AcknowledgementReleaseFormWeb1022%202.pdf
| Clause | |
| Inspection Contingency Waiver Alternative | Buyers offer is contingent upon satisfaction inspection at Buyers expense within days’ provided in this agreement, however, that Buyer may not terminate this agreement based on the results of the inspection unless it reveals a single defect where the estimated repair cost is in excess of $5000.
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| Inspection Contingency Waiver Alternative. Close or terminate. | Buyers offer is contingent upon satisfaction of inspection at Buyers expense within 7 days. Upon receipt of the inspection, Buyer shall have the following two options only: (a) terminate this Agreement in writing; or (b) proceed to close pursuant to the terms hereof.
Optional (explain to client): Failure to terminate this Agreement in writing within the stated timeframe shall constitute a waiver of this contingency.
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| Inspection Contingency Waiver Alternative. Non Refundable EMD | Buyers offer is contingent upon satisfaction inspection at Buyers expense within 7 days. If the inspection reports are not satisfactory, Buyer may terminate this Agreement by providing written notice to the Seller within said timeframe, in which case the earnest money deposit shall be released to Seller and neither party shall have any future rights or obligations hereunder. |
| Appraisal Guarantee | Notwithstanding any other provisions herein, this Agreement is contingent upon the Property being appraised at a value equal to or higher than: (a) the sale price or (b) $ ____ (lower appraised value that the buyer selects).
NOTE: Do not allow a clause in a PA (as a listing agent) that authorizes a reduction in price if appraised value comes in lower. If a seller does not get their asking price, they are typically not obligated to sell at that lower price, and any language otherwise should be stricken.
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| Escalation Clause. | In the event Seller receives another competing offer(s) from a qualified Buyer with terms acceptable to the Seller, and from which Seller would realize a higher net sales price (contract sales price less other Seller concessions) then Buyer hereby increases their offer by the amount necessary to give the Seller a net sale price that is $____________________ above the net sales price in the competing offer, not to exceed a maximum contract sales price of $_______________________. This additional amount shall be added to the buyer down payment.
If another competing offer(s) contains a similar escalation clause: (select one) ____ Only one escalation is authorized. OR ____ Multiple escalations are authorized not to exceed the above maximum contract sales price.
Should this escalation provision be invoked, this contract shall be deemed ratified when signed by the Seller provided no changes have been made to the Sales Contract other than sales price and financing escalation as agreed to in this addendum. Buyer and Seller agree to execute revised parts of the Contract of Sale confirming the escalated sales price and financing (if applicable) upon request by either party. Seller shall attach to this Addendum evidence of competing offers without which, at the option of the Buyer, this Escalation Addendum is void and of no effect and the original offer will be valid. Seller and Seller’s agent represent and warrant that all competing offers are bona fide. |
| Escalation Clause – Simple. | Buyer offers to pay $____ for the home, but if the seller receives a bona fide offer that is higher, buyer will increase the price to $____ above the amount of the other offer, up to $__________.
Optional: Seller must provide bona fide offer and all addenda must be provided at time of request for buyer countersignature. |
| Appraisal Guarantee Appraisal Gap | 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. |
| ‘Informational Only’ Sample Language | Buyer’s offer is contingent upon a satisfactory inspection at Buyer’s expense within ___ Days; provided, however, that Buyer may not terminate this Agreement based on the results of the inspection unless it reveals a single defect where the estimated repair cost fir which is in excess of $_______. Termination requires written notice of termination from Buyer to Seller, together with a copy of the inspection upon which Buyer relies. |
| Post Closing Occupancy Clause | Seller shall have the option to remain in possession of the Property for a period of ________ days after closing, but no later than ________. During Seller’s period of post-closing occupancy, Seller shall pay all utilities, shall maintain fire and liability insurance, shall maintain the Property and shall pay daily rent [of $________] [equal to 1/30th of Purchaser’s entire monthly mortgage payment, including principal, interest, taxes and all insurance (even if not included in Purchaser’s monthly mortgage payment)]. The parties shall execute a Post-Closing Occupancy Agreement as agreed upon by the attorneys for both Seller and Purchaser which shall contain the above-stated terms and a $________ security deposit for damage and removal costs. The terms and conditions to be included in the Post Closing Possession Agreement referred to above may include terms and conditions in addition to those contained in this Paragraph as mutually agreed upon by the attorneys for the Parties acting in good faith. |
| Paying for occupancy | Seller occupancy days 31 through 60 shall be at a per diem cost of 1/30th of Purchaser’s entire monthly mortgage payment, including principal, interest, taxes and insurance. |
