“Subject to:” is a generic start of a condition of a contract. Such conditions include subject to financing approval, subject to partner approval, subject to a profesional inspection, or subject to an appraisal equal to or above the purchase price.
In creative real estate, the term subject to usually refers to a deal that is subject to the buyer keeping the existing financing in place. Since loans are no longer easily assumable, there are some tricks that the buyer and seller must do so that the lender does not find out about the sale.
I’m just getting started in real estate investing and I’ve heard people speak of using “Subject To” in the contract when a property is going to be flipped. Would someone explain why this should be used and how I should use it in a contract?
If you are correct, then I didn’t ask the right question pertaining to flipping. I understand verbiage should be included in the contract that will give me the right to sell the contract. I need to know what verbiage to use and where it should be placed in the contract.