ContractsIntermediateArizona Exam

An Arizona 'bump clause' (or 'kick-out clause') in a contract contingent on the buyer's home sale allows the seller to:

ACancel the contingent contract without cause by providing the buyer 24 hours' written notice of intent to terminate
BContinue marketing the property and 'bump' the buyer if a non-contingent offer is received, giving the buyer a set time to remove the contingencyCorrect
CRequire the contingent buyer to waive the home sale contingency and close within 30 days or forfeit their earnest money
DAutomatically increase the accepted price to match the highest competing offer received during the contingency period

Why Continue marketing the property and 'bump' the buyer if a non-contingent offer is received, giving the buyer a set time to remove the contingency Is Correct

Answer B: Continue marketing the property and 'bump' the buyer if a non-contingent offer is received, giving the buyer a set time to remove the contingency

A bump/kick-out clause allows the seller to continue marketing. If a better offer arrives, the seller notifies the contingent buyer, who has a specified time (often 72 hours) to remove their home sale contingency or be released from the contract.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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