The VA Amendatory Clause – The Escape Vehicle

Reblogger Debbie Reynolds
Real Estate Agent with Platinum Properties TN Broker: 208698

Hey VA buyers, you are covered with this contingency that must be part of your VA home purchase contract. If the property doesn't appraise, you have an out. Of course the seller can always reduce the price for you.

Original content by Joseph Domino 480-390-6011 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



Joseph Domino

© 2010-2018 Joseph Domino All Rights Reserved


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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I call this a "get out of jail free" card - definitely an important addendum in a VA purchase contract

Jun 22, 2018 05:01 AM #1
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 05:06 AM #2
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Debbie. While many contracts contain a similar clause, the bite of the VA clause is much deeper for those few who try to keep the earnest money! Enjoy your day!

Jun 22, 2018 05:17 AM #3
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Great information for a borrower using the VA for their home loan Debbie Reynolds 

Jun 22, 2018 06:34 AM #4
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

In California, you would be amazed at how many agents do not fill in the space for the sales price. They let their buyers sign it without a number. You would think the buyers would see that and say, hey, how come there is no price in the spot provided for it? But they blindly trust their agents to know what they are doing.

Jun 22, 2018 09:33 AM #5
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much, Debbie, for sharing this excellent reblog selection.

Jun 23, 2018 07:19 AM #6
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Debbie Reynolds

Your Dedicated Clarksville TN Real Estate Agent
Clarksville and Real Estate are my specialities! May I help you?
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