Contracts
A Minnesota seller who accepts a backup offer while under contract with a primary buyer should:
ACancel the first contract before accepting the backup
BAccept the backup offer as a contingent contract to take effect if the primary contract fails✓ Correct
CRefuse all backup offers to avoid legal issues
DList the property again
Explanation
A seller may accept a backup offer as a contingent contract that takes effect only if the primary contract is cancelled. The seller remains bound by the primary contract until it is properly terminated.
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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.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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