Contracts
A Connecticut seller's property is under contract. Another buyer makes a higher offer. The seller's agent properly includes an 'escape clause' (kick-out clause). This clause allows the seller to:
AAccept the second offer and automatically void the first contract
BContinue marketing the property and give the first buyer notice to waive contingencies or lose the contract✓ Correct
CRaise the price on the first buyer's contract without notice
DSecretly negotiate with the second buyer without disclosure
Explanation
A kick-out clause allows the seller to continue marketing and, upon receiving a backup offer, give the first buyer a set period (often 48-72 hours) to waive contingencies or the seller may terminate the first contract.
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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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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.
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