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What An Escape Clause Really Means For Your Offer · That Home Loan Hub

• 0:10
  SPEAKER_01: If you were ever wondering what it's like to be in love with real estate, listen up.
• 0:16
  SPEAKER_01: I've got Mr.
• 0:16
  SPEAKER_01: Love in the house.
• 0:18
  SPEAKER_01: Hello, George.
• 0:18
  SPEAKER_00: Hi, everybody.
• 0:20
  SPEAKER_01: So I just made that up.
• 0:22
  SPEAKER_00: It sounded good, huh?
• 0:24
  SPEAKER_00: There's always some catchphrase to Mr.
• 0:26
  SPEAKER_00: Love.
• 0:26
  SPEAKER_01: There is, there is.
• 0:28
  SPEAKER_01: George, you have an amazing reputation in Carpeti Coast.
• 0:31
  SPEAKER_00: Thank you.
• 0:31
  SPEAKER_01: And I'm so pleased to have gotten to know you over the last few months.
• 0:36
  SPEAKER_01: And I'm very proud that you're here in the seat.
• 0:39
  SPEAKER_01: And I'm going to ask you lots of questions.
• 0:41
  SPEAKER_00: Well, I'm very honored that you've invited me and Megan to come along today.
• 0:46
  SPEAKER_00: We are a husband and wife team, as you know.
• 0:49
  SPEAKER_00: And that's what makes us what we are being a husband and wife team.
• 0:53
  SPEAKER_00: We've we've got very strong family values and we love people.
• 0:59
  SPEAKER_00: And that's why we got into real estate.
• 1:01
  SPEAKER_01: I love that.
• 1:02
  SPEAKER_01: Awesome.
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  SPEAKER_01: So um, what are we talking about today?
• 1:04
  SPEAKER_01: Do you have a topic for me?
• 1:05
  SPEAKER_00: I thought we'd cover a couple of things.
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  SPEAKER_00: What one thing that comes up a lot is with buyers is an escape clause.
• 1:12
  SPEAKER_00: What is an escape clause?
• 1:14
  SPEAKER_00: Exactly.
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  SPEAKER_00: And that's what they're saying.
• 1:15
  SPEAKER_00: A lot of people don't like them.
• 1:18
  SPEAKER_00: So what what an escape clause is, it's put on the contract when you've made an offer subject to selling your house.
• 1:26
  SPEAKER_00: So if you're subject to selling your house, most of the time an escape clause will go in place.
• 1:32
  SPEAKER_00: And what that means is if someone else makes a better offer to the homeowner, then the person that's made the original offer would get three to five working days to meet the terms of their conditions.
• 1:47
  SPEAKER_01: Okay, so let me rephrase this.
• 1:50
  SPEAKER_01: We've got a situation where a buyer is putting an offer to buy a house, but they have to sell their house first before they can proceed with the purchase of this one.
• 2:02
  SPEAKER_01: And in order to not be stuck with buyer A, the vendor can put an escape clause to say, hey, if someone else comes up with a better offer, I'm gonna give you three days or five days to either go unconditional and say, Yep, I'm buying this house, or I will go ahead with this person.
• 2:22
  SPEAKER_01: Is that right?
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  SPEAKER_01: That's right.
• 2:23
  SPEAKER_00: Buyer B.
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  SPEAKER_00: That's exactly what it is.
• 2:25
  SPEAKER_00: Now it's quite tough because it can easily fall over the deal.
• 2:29
  SPEAKER_00: If someone comes in with a better offer, because we carry on doing open homes, so the the public are still coming through, and a lot of times we see it going over.
• 2:38
  SPEAKER_00: Now, what we can do to help those buyers is which in fact I've got a perfect example.
• 2:45
  SPEAKER_00: Just before Christmas, we had a buyer, well, a vendor contacted us and said, Hey, we've just found a house we need to sell before Christmas.
• 2:54
  SPEAKER_00: This was two weeks before Christmas.
• 2:56
  SPEAKER_00: No pressure.
• 2:57
  SPEAKER_00: No pressure, because we've just put an offer on a house.
• 3:00
  SPEAKER_00: Now, luckily, these people we spoke to earlier in the year and we said to them, Look, the best chance you've got is let's get the paperwork done, let's get you signed up, let's get your photographs done.
• 3:11
  SPEAKER_00: So your photographs are all ready to go.
• 3:13
  SPEAKER_00: So when you find somewhere, we can get you on the market the very next day.
• 3:17
  SPEAKER_01: Ah, so they were prepared.
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  SPEAKER_00: They were prepared.
• 3:21
  SPEAKER_00: So they we were expecting them to go on the market this year.
• 3:24
  SPEAKER_01: Yeah.
• 3:25
  SPEAKER_00: But they phoned me two weeks before Christmas and said, Hey, George, hey, Megan, we've found a house, we've made an offer, it's been accepted, we need to sell.
• 3:33
  SPEAKER_00: We're like, great.
• 3:34
  SPEAKER_00: We got them on the market the next day, and we sold the house within six days.
• 3:38
  SPEAKER_00: Six days.
• 3:39
  SPEAKER_00: Six days.
• 3:40
  SPEAKER_00: Whoa.
• 3:41
  SPEAKER_00: And that was all preparation.
• 3:42
  SPEAKER_00: The market was hot.
• 3:43
  SPEAKER_00: These were the last minute buyers, and in one open home, we got 30 groups through.
• 3:48
  SPEAKER_00: We also had lots of people come through for private viewings before, and then within a day after the open home, we had offers flooding in.
• 3:56
  SPEAKER_00: We brought the deadline forward and we sold it cash unconditional.
• 4:01
  SPEAKER_00: That's amazing.
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  SPEAKER_00: It was amazing for them.
• 4:03
  SPEAKER_00: So that is one way to make it work for you with the escape clause.
• 4:07
  SPEAKER_00: You know, you've got to be able to act quick.
• 4:09
  SPEAKER_00: Yeah.
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  SPEAKER_00: And we can help buyers through all that.
• 4:13
  SPEAKER_00: We can sort of guide them through it step by step.
• 4:16
  SPEAKER_00: That's where Megan and I work really well as a team and taking that pressure away from them.
• 4:21
  SPEAKER_01: Wow, that's amazing.
• 4:23
  SPEAKER_01: It's really, really important to know about those escape clauses because we are in the market where there's a lot of uncertainty.
• 4:30
  SPEAKER_01: And people sometimes don't want to rush into selling their house if they can't secure another house.
• 4:35
  SPEAKER_01: But sometimes that means they will shoot themselves in the foot because they will miss out on the other property.
• 4:40
  SPEAKER_01: So by preparing early enough, by speaking to a real estate agent and actually getting the house ready to go at the push of a button, that's amazing.
• 4:48
  SPEAKER_01: That's very clever.
• 4:49
  SPEAKER_00: Yeah, it was great.
• 4:50
  SPEAKER_00: And look, we we're just we've been working on these techniques for quite a few years now, and I think we've mastered them now to helping people, you know, and and we're always looking to grow.
• 5:00
  SPEAKER_00: And now we've met you as well, you know, and we're getting great ideas from you how to get people in a cash position as well, which is so powerful.
• 5:09
  SPEAKER_01: Awesome, awesome.
• 5:10
  SPEAKER_01: George, thank you so much.
• 5:11
  SPEAKER_01: Anything else to add about this Cape Claws?
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  SPEAKER_00: No, I think that that's for now.
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  SPEAKER_00: I don't like to bombard people too much, but hey, look, if you ever want any more information, give Megan or myself a call anytime, and we can talk you through it face to face.
• 5:25
  SPEAKER_01: Love it.
• 5:26
  SPEAKER_01: So that's George and Megan Love from Hartcourts Carpete.
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  SPEAKER_01: That's right.
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  SPEAKER_01: Beautiful.
• 5:31
  SPEAKER_01: Thank you so much, George.
• 5:33
  SPEAKER_01: See you soon again.
• 5:34
  SPEAKER_00: See ya.