A home inspection clause is a must have. If you were to sign a contract without this clause and you found out later that the property has termites or dryrot you will be responsible for it. If you had it in the clause you would have the option to have the seller credit you for the repair fees or you can cancel your offer.

A clause to have if you are a buyer working with seller financing is first right of refusal. This clause will state that if the seller were to discount their note in the future you will be the first one offered to buy the property at the discounted rate if you could come up with the cash for the deal. Without this clause the seller can sell to a new investor the note and you will have to pay this new investor rather than the person who sold you the property.

Extended contract clause. This is a good thing to have if you have a balloon payment sometime down the line. What this clause says is that you may extend the term another year or two if you do not have the ability to come up with the balloon payment at the time it is due. This is a life saver for some.

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