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Hi, I’m Guy Gimenez with Buying Texas Today. One of the most common provisions you will find in most contract forms from an investor is called a "Weasel Clause".
A "Weasel Clause" is simply language inserted into the contract that allows that investor to walk away from your contract without penalty if the investor is unable to find someone to sell that contract to.
Weasel clauses typically state that your contract is "subject to" or "contingent upon" property approval by some third party, a "business partner", an "inspector", an "investor partner" — whatever it may be. This person is always unnamed and is never a party to your contract.
Anytime an investor needs approval by some unknown third party or if your contract contains language I describe in my video titled, "Is Your Buyer Really a Buyer?, then rest assured that investor has no intention of buying your property.
As always
reach out to us with any questions you may have and we will be happy to discuss your situation with you!
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