What is an escape clause?
An escape clause means that you can sell off the property for sale. Let’s just say you live at 123 Main Street and somebody says, ‘Hey, I wanna buy your home but I have a home to sell’.
You say, ‘Okay, fine, you can sell your home but I need an escape clause’. That means if somebody else doesn’t have a home to sell or they have a more like a property that you think will sell more, then you could potentially bump those people but those first people that have the foot in the door, they would basically have 24, 48 or 72 hours to firm up or to back out.
Meaning, ‘Hey, we could potentially escape to sell to these other people’. but it doesn’t automatically just go to the other people. The first people do get that first right of refusal to say, hey, yet we can still buy it or no, we can’t unfortunately and let it go to the other people.
