Contracts
When a Maine seller accepts an offer with an escape clause (kick-out clause), it means:
AThe seller can cancel at any time
BThe seller can accept other offers and give the first buyer a chance to waive contingencies✓ Correct
CThe buyer can back out without penalty
DThe contract is not legally binding until inspection
Explanation
An escape clause (kick-out clause) allows a seller who has accepted an offer with a home sale contingency to continue marketing the property and, upon receiving another offer, give the first buyer a set period to waive the contingency or release the contract.
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Key Terms to Know
Contingency
A 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.
Earnest MoneyA 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.
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