The Weasel Clause is like a slippery snake finding its way into the most obscure part of your real estate contract. Like poisonous venom, the Weasel Clause is meant to take a bite out of you, in the event that someone doesn't like the way the deal is going and wants out. The Weasel Clause can be a slippery way of escape out of a contract. Usually disguised and stuffed in a sentence or paragraph of fluffy verbiage (where it is barely noticed), the Weasel Clause is ready to kill the deal in one bite!
Here are two classic examples of the Weasel Clause:
1. This offer is subject to Buyer obtaining financing with a lender of Buyer's choice, at terms and conditions acceptable to Buyer. What terms & conditions are going to be acceptable to the Buyer? If they are not defined upfront, they are left up to interpretation. And what if the Buyer doesn't like the terms and conditions of their loan on the day of closing? You guessed it, they have a right to back out.
2. This offer is subject to Buyer performing a walk-through of the home prior to closing. What if they aren't happy with the walk-through on the day of closing? You got it, they can walk away from the deal. We may all agree that a walk-through is important. However, it may be best to make the walk-through a "courtesy" of sale, and not a "contingency" of sale.
Don't be fooled by the Weasel Clause, it's there for a purpose. Even though the other agent says his/her client has pure intentions... yada, yada, yada... we all know that people typically go into protect and defend mode when something goes wrong. Make sure you protect and defend your client in the negotiation stage, so the Weasel Clause doesn't take a bite out of you!
This information is provided courtesy of Melinda Peterson ~ Real Estate Cafe
