How exactly are one of these worded, and how do i work it into my agreement to sell?

Try being alot more specific? Complete thoughts are always helpfull as well as context!

Well I am basically trying to wholesale properties, and i hear the safest way to do that is to work a 30 day inspection clause into the agreement during which i can back out at any time.

No one in their right mind would allow for a 30 day inspection time frame. 7 to 10 days is typical with the possible exception of Termite inspections when the close date is outside what the coverage period of the inspection is.

Are you a licensed Agent? I have a strong feeling you are not and just someone who wants to tie up a property while you illegally attempt to find a buyer. Basically acting as a Broker with out license which is a felony in most states and is strongly enforced in Florida. If your not licensed, you will not be able to effectively market in Florida with out a licensed agent "discovering" you and file a complaint.

Placing any clause in an agreement which allows you to back out at any time is unethical in most circumstances unless you are PAYING for an Option.

If your not licensed... You will probably find, Pensacola is a dangerous place to attempt to perform illegal real estate activities.

Realty Check,
What you need is a reality check.

He is an investor attempting to resell the property before he closes on it. Hate to break this to you but that is not Illegal and challenge you to post that statute that you claim it violates. Since he would be acting as a principle there is no license needed and he would not be acting as a broker.

Using the inspection period to back out should he not find a buyer is not the best way to do business but also not illegal.

Would do something like that earn me a bad reputation? if so, what are some more ethical steps i can take to avoid being stuck with a property? Ive also heard of a 30-60 day condition termination period along similar lines of the inspection period mentioned.

Just to back up Paul's comments, reselling a property before you close on it is 100% legal everywhere and you don't need a license in most states or any province. Michigan is one exception, there I think the limit is 5 properties a year without either being licensed yourself or using a licensed broker to conduct your sales.

Back to your original question. An inspection clause or a financing clause or a "I have to check with my partner, the dog" clause, are all bogus as escape clauses. I know they're popular in the 'guru' courses but they should be in your contract and used ONLY for the legitimate reasons they exist.

You don't need to be sneaky or ashamed of what you're doing. You are providing a legitimate solution to a property owner's problem but at the same time you don't take on unnecessary risk to do so. Everyone you deal with should understand that.

That said, I would get the protection you're looking for in one of two ways:

1. Pay the seller $1 for a 30 day option to purchase the property.
2. Include a 30 day cancellation clause in your purchase contract.

Which way you do it doesn't really matter. What matters is how you explain your position to the other party. They have to understand that you are going to do your best to help them, but you can't make any guarantees.

To ensure you don't have to call on any of these methods of escape you have to make sure you get great deals, and start right away building a buyer's list, so you can flip these deals quickly. Then you won't need 30 days anyway.

Other clauses to consider adding are...

1. Subject to Inspection
2. Subject to Marketable Title

Thanks for the great suggestions. I never even considered a 30 day option.

Noob here: How exactly will the "subject to inspection" get you out? If they don't find anything, or it is minor, or the owner will fix whatever is found then you don't have an "out", right? Same goes for the title, what if the title is marketable? What are "legitimate" outs that won't get you laughed at and you can use to walk away if you need to?

I think I like what RealDealer said.

I tend to agree with RealDealer...just go with an option and call it what t is.

DRM7,

The "Subject to Inspection" clause is to protect you and your investment. It isn't primarily for an escape, but if there is something to be found during the inspection stage, i.e., faulty foundation, structural damage, HVAC problems, etc. These damaging situations can pose a great liability on the homeowner in the future. This the reason that it's almost always best to order an Inspection right after an Offer is accepted.

Regarding the "Marketable Title" clause, this protects the buyer because you want to make sure that there isn't any existing judgments, liens, etc. attached to the Subject or Target Property. Again, this isn't an escape technique but it can be used to the Buyer's advantage and offering a peace of mind.

Thanks for the information. This raises another question for me, if you put an inspection clause in your contract and the inspector finds various things from minor issues to say wiring or plumbing, even a dripping faucet, is everything in the report up for negotiation? I guess my real question is, can you negotiate EVERYTHING in the report or are there "rules" covering how to handle inspection findings?

With that Inspection clause in the Offer, it allows breathing room to discover an issue or uninformed condition of the house that you were not aware of. So "Yes", you can negotiate from there if your Inspector finds issues that can be a future liability. If the Seller cannot or will not correct the issues then this clause should protect you. I would always check with your local RE Attorney for confirmation.

An Option is probably the best choice for the topic scenario but some states do not allow Options. Therefore, you would have to consider using clauses that can protect your earnest money and financial livelihood.