Contracts
A 'backup offer' in Alabama real estate is:
AAn offer that automatically becomes primary if the first contract fails
BAn offer submitted after the seller has accepted another offer, held in position to become primary if the first contract falls through✓ Correct
CAn offer that must be rejected by law
DAn offer made by a buyer who cannot get financing
Explanation
A backup offer is submitted and accepted in a secondary position. If the primary contract falls through, the backup automatically moves into primary position.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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