Real Estate Term of the Day: Escape Clause
ESCAPE CLAUSE – a provision in a contract that allows one or more of the parties to cancel all or part of the contract if certain events or situations do or do not happen (Barron’s Dictionary of Real Estate Terms)
The most common use of the escape clause is if the buyer makes the purchase offer contingent on the sale of another home. Failure for that sale to complete would allow the buyer to cancel the agreement to purchase the other home.
