Special Stip Framework
Buyer Contingency
This Agreement is contingent upon Buyer obtaining | receiving | other ____________________________ from _____________________________ before ___/___/___ ("Special Contingency Date"). If this contingency is not fulfilled prior to the Special Contingency Date, Buyer must provide Notice to Seller within one Day and [select one]
... this Agreement shall automatically terminate and Buyer shall receive a full refund of their earnest money. Buyer has the unilateral right to remove this contingency at any time prior to the Special Contingency Date.
... Buyer may extend the Special Contingency Date _____ Days by paying to Seller in immediately available funds $_____________ in Option Money. This Option money ☐ will ☐ will not be applied to the Purchase Price at Closing.
... Buyer has the right to terminate this Agreement within 3 Days of the Special Contingency Date. If the Buyer does not terminate timely, the Buyer's right to terminate under this contingency is waived.
Inspection Contingency
This Agreement is contingent upon [Inspection Item] before ___/___/___ ("Special Contingency Date"). The Buyer must complete the above inspection in order to rely upon this contingency. If this contingency is not fulfilled satisfactorily prior to the Special Contingency Date, Buyer must provide Notice to Seller with evidence of inspection results within one Day and [select one]
- this Agreement shall automatically terminate and Buyer shall receive a full refund of their earnest money.
- Buyer has the right to terminate this Agreement within 3 Days of the Special Contingency Date. If the Buyer does not terminate timely, the Buyer's right to terminate under this contingency is waived.
Seller Repair Stip
Purpose: Request specific and objective changes be made to the Property.
Seller will have the ____________________
located in the _________________
[Pick One] serviced / repaired / replaced / repaired or replaced / installed / mediated / reattached / restored / sealed / secured / treated / pumped / flushed / removed
by a licensed / certified / professional _________________
in accordance with _________________ standards / codes / permit requirements
and provide Buyer with all estimates, details of work, permits, warranties and paid invoices
on or before ___________________.
If the Seller does not fulfill this obligation properly and timely,
[Pick One]
- the Buyer may terminate the Agreement and receive a full refund of Earnest Money in addition any the other remedies available in the Default section of this Agreement. (This is already the default remedy but makes it clear what happens.)
- the Seller will pay an additional $ ________________ as Seller Monetary Contribution Toward Buyer’s Costs at Closing to compensate Buyer. [This should be an amount that motivates the Seller. Cannot be used if the repair is something the Lender will require be complete in order to make the loan.]
- the Buyer has the right to unilaterally delay the Closing until the date this obligation is fulfilled by Seller and Seller will pay $ ____ per day for as a penalty for the delay which will be paid as a Seller Monetary Contribution Toward Buyer’s Costs at Closing. The Seller will also pay at Closing the cost of any rate lock extension charged by the lender as a result of the delay in Closing.
Deadline Changes
Purpose: To change deadlines with the Buyer and the Seller needs in mind.
The Buyer and Seller agree to modify the _____________________________ deadline to ___/___/___. Buyer will pay to Seller within one Banking Day $__________ as Option Money, which ☐ will ☐ will not be applied to the Purchase Price at Closing.
If Buyer fails to deliver the Option Money timely, Buyer will be in default and the Holder will pay to Seller the Earnest Money.
Closing Date Changes
Purpose: To change the Closing Date with the Buyer and the Seller needs in mind.
As consideration for Seller agreeing to amend the Closing Date to ___/___/___, Buyer will pay to Holder within one Banking Day $__________ as additional Earnest Money, which ☐ will ☐ will not be applied to the Purchase Price at Closing.
If Buyer fails to deliver the additional Earnest Money timely, Buyer will be in default and the Holder will pay to Seller the Earnest Money.
Seller Kick Out
Purpose: Add Seller rights when the Buyer is asking for a contingency that is longer or more subjective than the Seller would prefer.
Seller shall have the right to continue to market and offer the Property for sale. If Seller receives an acceptable bona fide offer to purchase the Property that the Seller would like to accept, Seller shall give Buyer Notice of the same. Buyer shall then have _________ hours after receipt of the Notice to deliver to Seller an Amendment to this Agreement, signed by Buyer, removing
[PICK ONE]
-
this contingency in favor of Buyer.
-
all contingencies in favor of Buyer, including any Due Diligence Period in the Agreement.
[OPTIONAL]
Additionally, Buyer will pay to Seller $__________________ as Option Money. This Option money ☐ will ☐ will not be applied to the Purchase Price at Closing.
In the event Buyer does not deliver within the time period stated above: (1) the signed Amendment to Seller and (2) the Option Money (if any referenced above) to Seller, then this Agreement shall terminate, and Earnest Money shall be refunded to Buyer. In the event Buyer delivers the Amendment referenced above and the additional Option Money (if any) within the time period stated above, Seller shall execute the Amendment and deliver a copy of same to Buyer.
SMART Framework
Seller Responses to a Contingency Request
✅ Accept as Written
Agree fully and assume the risks with full understanding of the possible consequences.
💰 Make it Costly
Add option money for the contingency to compensate the Seller for taking the home off of the market without clear indications that it will close. Note whether the Buyer will or will not get credit for this money at Closing.
⏳ Counter with a Deadline
If there is no existing deadline, the contingency lasts through Closing. Adding an earlier deadline will give the Seller more certainty prior to Closing.
📑 Request More Information
As the Buyer to explain the reasoning behind the contingency and it's time period. Firming up details may allow for a shorter contingency that what is initially requested.