The VA Amendatory Clause – The Escape Vehicle

Real Estate Agent with HomeSmart SA541769000

VA loans offer qualified buyers several benefits that make purchasing a home easier and less risky. Some of the benefits of using a VA loan include an option for no money down, a government insured loan and a property appraisal process that helps ensure the home meets minimum standards.

One of the often overlooked benefits is the VA Amendatory Clause language that is a required modification to typical real estate contracts. The purpose of the clause is to remove some of the risks for loss of earnest money deposits made by the buyer. The clause offers a way to terminate the purchase contract if the properties’ cost exceeds the established (appraised) value.

Since some VA buyers lack the substantial cash reserves that many conventional buyers have, the loss of deposits could severely cripple their attempt to purchase again if a sale falls through.

You may see the VA Amendatory Clause, sometimes called the Escape Clause, presented in several different ways. As long as the clause or addendum follows the language identified by the U.S. Department of Veteran Affairs the buyer is protected.

An example of the clause language can be found at



 Joe Domino is a Realtor® serving the Phoenix & Scottsdale metro area. You can find more great information by visiting his website at



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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 06/22/2018 05:00 AM
Home Buying
scottsdale homes
phoenix homes
mortgage lending
real estate

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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This is a very important element to the VA contract. It is also similar in FHA contracts. We are a government loan area so buyers are covered.

Jun 20, 2018 05:46 PM #1
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Very Important. Thanks for the Re-Blog Debbie Reynolds 

Jun 20, 2018 06:10 PM #3
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

In Wisconsin...checking the Appraisal box on any offer will provide the buyer with that protection.

Jun 22, 2018 05:07 AM #4
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Joseph Domino 480-390-6011 

This is good information for the veteran using the VA to finance their home purchase

Jun 22, 2018 06:37 AM #5
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