Need to have "out clauses" in contract with owner???

Need to have "out clauses" in contract with owner???

I was wondering what "out clauses" are good ones to write in a contract? Basically how do I not get screwed if I cannot find a buyer to assign the contract to? This I think is the one thing holding me back from talking to homeowners and getting a contract signed. I'm affraid that if I lock up a deal and can't find an end buyer I'll get stuck with the house. So is there any terms or anything that I need to know?

Much appreciated thanks.



Money won't fall into your hands, you have to earn it!

out clauses

A couple I would make sure to have are the right of inspection clause, and approval of partner clause. The approval of partner clause can get you out of the contract if you can not find an end buyer but you will have time limits on each.


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clearing up what each of those ACTUALLY mean

So you are basically saying a good clause is approval of partner(does this mean that you tell them you have a partner and if he or she doesn't want this, you can get out of the deal???)

and for right of inspection clause, what does that mean exactly...if it fails inspection, you can get out of it???

Sorry if I sound dumb, but if i don't ask, then ima feel even dumber when i get to that point and dont know what they mean...


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The IRS and your state department of labor are on the lookout for employers who don't collect and pay withholding taxes, unemployment, and workers' compensation insurance. If you have employees that are "off the books" you're looking for trouble.

If you get caught, you'll have to pay withholding taxes and as much as a 25% penalty. Intentionally failing to file W-2 forms will subject you to a $100 fine per form. The fine for failing to complete the Immigration and Naturalization Service (INS) Form I-9 varies from $100 to $1,000 per form.

Your corporation or LLC won't shield you from liability in these cases, either. All officers, directors, and responsible parties are personally liable for the taxes.
If you hire people to do contract work for you on a per-diem basis, they may be considered employees by the IRS. If any workers fail to pay their estimated taxes, you may still be liable for withholding.

If these workers are under your control and supervision and work only for you, the IRS may consider them employees, even if you don't. If this happens, you may be liable for back taxes and penalties.

To protect yourself, you should:

Hire only contract workers who own their own corporation. Or get the business card and letterhead of any unincorporated contractors you may use, so you can prove these workers aren't your employees.

Require proof of insurance (liability, unemployment, and workers' compensation) in writing.

Get written contracts or estimates on workers' letterhead that states they'll work their own hours and you don't have direct supervision over the details of the work.

Have letters of reference from other people for whom the contractors worked to show that the contractors didn't work solely for you. Keep these in your files.

File IRS Form 1099 for every worker to whom you pay more than $600 per year.

In addition to possible tax implications, an independent contractor can create liability for you if a court determines the contractor is your employee. For example, if your independent contractor is negligent and injures another person, the injured party can sue you directly.


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