Let's look at the Offer is Subject to Parent's Approval clause
This type of clause is most frequently inserted when a young couple is buying their first home.
One or sometimes both the mothers and fathers may be giving their children a gift of perhaps equal to the down payment.
They feel and rightly so, that they need to approve the home purchase.
When I was active in the real estate industry, many times young couples purchasing their first home, would have part or all of the down payment provided by Mama and Papa.
Because Mama and Papa had a vested interested in the property, they usually wanted to see where their monies were going and would raise objections from time to time.
It was also quite common for the young couple to bring one or both sets of parents in to view the property before solidifying the transaction.
I suspect that many times there was some background conversation that went something like this:
"Now listen kids, don't buy any house until we've approved it first." "Your mother and I have bought many homes over the years and know what to look out for."
If the parents were not helping with the down payment,
in many cases the "kids" ignored them, just like they always did when it
came to good advice from experience.
If the parents were providing financial support, then the "kids" didn't have much choice. They almost had to have the subject to parent's approval real estate objections clauses inserted. :-)
For some different information about clauses, please select one of the photo links of your choice below.
"How do You Handle the Parent Clause?"
Before I get into the actual viewing by the parents lets look at the motivations and things you should consider with these real estate objections clauses.
In many cases, the parents will just walk through the property, make a few comments and then have a short chat with you and leave.
In most cases they will be satisfied with the home and everything will be fine......BUT.....once and awhile.......
Dad, (sorry I'm picking on Dad's here), starts his, this is wrong, that is wrong. Even worse, he starts trying to bargain for a better price! What to do?
When any real estate objections arise, first stay calm, nod your head up and down slowly, smile, take a deep breath and relax.
Isolate the Problem
When handling these real estate objections clauses, the first thing to do after returning to the kitchen table and making sure Dad is relaxed, is to isolate the issue.
You: Well Dad, I know you have some concerns about the furnace, right?
Dad: I most certainly do. That furnace looks at least 25 years old and will probably break down shortly.
You: I can certainly appreciate your concern. Tell me, is this the only concern you have with the house Dad?
Dad: As far as I could see, yes.
You: So just to make sure we are on the same page, if we can put your mind at ease about the furnace, then everything is a go, right?
Dad: That would most certainly put our minds at ease.
Note: What you are doing here, is confirming the issue, isolating it to one issue, and getting Dad to confirm that if the furnace "problem" is either corrected or a non issue, the transaction is a go.
What you say after that is going to depend on:
Well Dad, we have our furnace inspected and cleaned every year and this
is the report we had done just last month. As you can see, there are no
cracks, the burner is working at top efficiency and the furnace company
gave the furnace an A-OK. I can leave this report with the house when
the "kids" move in if you like. We also highly recommend XYZ furnace
people. The service they supply has been exceptional. Would you like us
to leave this report?
You: How about
we do this. I'll have a full furnace inspection done as soon as possible
and based on that report we can either give the all clear, or we will
repair or replace any problems that arise from said inspection. We most
certainly don't want these "kids" having any problems with the furnace
when they move in. How about we write up an amendment to the purchase
and sales agreement right now and go from there. Fair enough?
You could also offer a Seller's Home Warranty which should help ease Dad's concerns.
In a Nutshell
The main points to remember should a "problem" be brought up on the parent approval walk-through real estate objections clause:
Side Note: Please don't try to hide things. I'm a great believer in being honest and upfront with people no matter what I'm doing. I realize that people aren't perfect, including myself, but we can all try to "do to others what you would like to be done to you". OK?
For More Information about Satisfying Clauses
Select any of these photo links