Contracts
What is a 'backup offer' in a Hawaii real estate transaction?
AA. A second offer from the same buyer with improved terms
BB. An offer accepted by the seller as a contingency: if the first accepted offer falls through, the backup offer automatically becomes the primary contract✓ Correct
CC. An offer submitted to the seller while the listing agent is unavailable
DD. A verbal offer made before a written offer is submitted
Explanation
A backup offer is an offer the seller accepts with the understanding that it takes effect only if the primary contract falls through. The backup buyer must be willing to wait and may deposit earnest money that is held during the waiting period. Backup offers protect sellers against starting from scratch if the first deal collapses.
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