Contracts
In Michigan, a seller who accepts an offer while a contingency (such as a home inspection) is still pending has:
AEntered into a binding, unconditional contract
BEntered into a binding contract subject to the contingency being satisfied or waived✓ Correct
CForfeited their right to accept other offers permanently
DCompleted the sale
Explanation
When a seller accepts an offer with pending contingencies, the parties have a binding contract, but the buyer's obligations (and sometimes the right to proceed) depend on the contingency being satisfied or waived. If the contingency fails, the contract may terminate.
People Also Study
Related Michigan Questions
- In Michigan, an 'offer to purchase and contract' that is signed by both parties and not subject to any unfulfilled contingencies is:Contracts
- In Michigan, an 'offer to purchase' becomes a binding contract when:Contracts
- In Michigan, a 'home inspection contingency' period typically runs from:Contracts
- Under Michigan law, an offer to purchase real estate becomes a binding contract when:Contracts
- In Michigan, a residential landlord who fails to provide required disclosures under the Security Deposit Act (such as not providing a financial institution statement for the deposit location) may lose:Property Management
Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
Study This Topic
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →