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A "Turkey Foot Clause" is a specific type of contingency clause in a real estate contract that allows the buyer to back out of the purchase for any reason, or for a set of very broad, subjective reasons, up until a certain deadline. This clause provides the buyer with significant flexibility and risk mitigation, essentially allowing them to "walk away" from the deal without penalty, much like a wild turkey can escape by leaving only a footprint. Understanding this clause is critical for both buyers seeking protection and sellers evaluating the strength of an offer.
The core function of a Turkey Foot Clause is to provide the buyer with a nearly unrestricted exit strategy. Unlike specific contingencies for financing, appraisal, or home inspection, which are based on objective, third-party verifiable conditions, a Turkey Foot Clause is often based on the buyer's subjective satisfaction. This could be with the property's condition, the neighborhood, or even a simple change of heart. For a buyer, including this clause can make a competitive offer feel safer. For a seller, an offer containing a Turkey Foot Clause is considered riskier than an offer with only standard contingencies, as the likelihood of the deal falling through is higher.
Standard contingencies are designed to protect the buyer from specific, unforeseen issues. A financing contingency, for example, makes the purchase dependent on the buyer securing a mortgage loan from a lender. An inspection contingency allows the buyer to negotiate repairs or withdraw based on the objective findings of a professional home inspector. The Turkey Foot Clause, by contrast, is not tied to an external event or objective report. Its trigger is the buyer's personal discretion, making it a much broader and more powerful form of protection for the buyer and a significant point of negotiation in the contract.
Sellers should be wary of accepting an offer that includes a Turkey Foot Clause. By agreeing to it, the seller effectively takes their property off the market for the duration of the contingency period. If the buyer decides to invoke the clause and withdraw, the seller has lost valuable marketing time and may have missed opportunities from other potential buyers. This can be particularly damaging in a fast-moving market or if the property has limited interest. Sellers often counter offers with Turkey Foot Clauses by requesting a higher sale price, a shorter contingency period, or the removal of the clause altogether in favor of more standard, objective contingencies.
There are strategic reasons a buyer might insist on a Turkey Foot Clause. If a buyer is new to a area and is unsure about the community, or if they are making a quick decision in a competitive bidding situation and want a "safety net," this clause can provide peace of mind. It can also be useful for buyers who are simultaneously trying to sell their own current home but are not making their purchase offer contingent on that sale (a separate "home sale contingency"). It gives them an option to exit if their own sale encounters unexpected problems.
| Aspect | Buyer's Perspective | Seller's Perspective |
|---|---|---|
| Risk Level | Low risk; maximum flexibility. | High risk; deal is less secure. |
| Market Appeal | Makes an offer more attractive to the buyer. | Makes an offer less attractive to the seller. |
| Negotiation Power | Can be used to secure a property with a safety net. | Often leads to requests for a higher price or shorter deadlines. |
The inclusion of a Turkey Foot Clause is a significant negotiating point. Buyers should understand that while this clause offers excellent protection, it may make their offer less competitive compared to offers without it. Sellers must carefully weigh the benefits of accepting an offer with this clause against the potential risk of the deal falling apart. In many cases, a compromise can be found, such as a very short window for the Turkey Foot Clause expiration or a non-refundable earnest money deposit after a certain period. Always consult with a qualified real estate professional to understand how this clause interacts with state-specific contract laws and your unique situation. The key is to ensure the contract terms align with your risk tolerance and investment goals.
