While I admire the spirit of your request, I'd handle that contingency a different way as an investor. Before I get into what I'd do, I'd also like to second Liv'ed's sell-side point.

First, most sellers are used to a financing contingency, so I think you'll get more milage from using one. Besides, all of the other criteria are basically implied with the financing contingency, because few underwriters (if any) will approve a loan for a borrower who's unemployed or who's salary is reduced (assuming the borower tried to qualify for the max).

Second, instead of writing fancy contingencies, why not help your buyer to negotiate an option on the property. This way if any of that other stuff were to happen, then your buyer could sell that option to another buyer.

Thank you all for your input. In the end, Sellers accepted the clause pretty much as originally written. The only change was to alter the "floating" "prior to closing" to a fixed point in time. roughly 1 week prior to scheduled closing.

Michael i was wondering how you made out. Looking at it as i buyers agent and then looking at it if i was the listing agent i have different thoughts. As the buyers agent of course you are protecting your buyer, but if i was the listing agent and received a contract with this on it, i would think of the sellers protection. If the buyer looses their job before closing, they can not get a mortgage anyway and it would fall under the mortgage contingincy, i was thinking the only time it would come into play is the time between committment and closing. Please let us know.... thanks

Buyer reserves the right to withdraw this offer prior to transfer of title if there are one or more significant changes in Buyer's employment. Such changes in employment include:

1. Buyer's annual salary is reduced;
2. Buyer becomes unemployed;
3. Buyer's employer relocates beyond a 50-mile radius of Concord, NH; or
4. Buyer accepts a job which would require travel in excess of 50 miles from Concord, NH.

In the event Buyer decides to withdraw this offer based on one or more of the above, Buyer will give written notice of such withdrawal to Seller, and Seller agrees that all deposits paid by Buyer shall be returned to Buyer within five (5) days of receipt of such notice.

~~~

For what it's worth, if I were the seller, I wouldn't accept this without compensation for keeping my house off the market while the Buyer (hopefully) makes his/her way through the purchasing process without a change in employment status or location.

Hi Michael,
I agree that a lawyer should be involved, but if you want to suggest to a lawyer what you are thinking, then something like: All parties agree that if a significant change of employment for either buyer occurs prior to closing, including loss of employment or transfer outside a 50 mile range, that this transaction may be canceled with all deposits returned.

The key is to keep it simple and clear.

Best luck,

Dane Hahn
NH Broker 603-566-5460

I agree with the concept but also with the idea that an attorney should craft the clause (maybe even hotline).

Also, for any of these sorts of contingencies, try hard wiring the escrow release in the offer. "in such and such event, BUYER and SELLER authorize and instruct ESCROW AGENT to release all deposit monies to the BUYER without further authorization required by either party." That way you don't have to chase paper work on a dead deal, but may have some education to do with other agencies handling escrow in which case if your agency is OK with this, then hold it there. This idea was vetted at a "never do that again" training session with Kathy Roosa and she endorsed the concept.

Michael, as a buyer's agent I would have the buyer seek legal assistance on this one. It reads well as written to me, but for the best protection have an attorney review it. Personally, I don't typically want to put lawyers in the middle, but the with the buyer's best interest a top priority, it may be prudent. Good Luck.