Contracts
A Montana seller who accepts a backup offer on their property should understand that the backup offer:
AAutomatically voids the first accepted offer
BBecomes effective only if the first transaction fails and the seller gives proper notice to the backup buyer✓ Correct
CRequires the seller to negotiate with both buyers simultaneously
DObligates the seller to choose between the two offers immediately
Explanation
A backup offer becomes effective only if the primary contract falls through. Upon failure of the first contract, the seller typically notifies the backup buyer and the backup offer becomes the active contract.
People Also Study
Related Montana Questions
- A Montana seller accepts a full-price offer but the transaction later fails because the buyer's lender requires repairs the seller refuses to make. If the contract has a financing contingency, the buyer:Contracts
- An offer becomes a binding contract when:Contracts
- Under Montana law, a real estate purchase contract becomes binding when:Contracts
- A Montana homeowner with a deed of trust defaults on their loan. The trustee initiates a non-judicial foreclosure. What is the first step the trustee must take?Finance
- In Montana, if a buyer's agent writes an offer for their client on a property listed by the same brokerage firm, and the firm chooses to practice dual agency, both parties must provide:Agency
- A Montana real estate licensee who accepts a referral fee from a home warranty company without disclosing it to their client has:Montana License Law
- A Montana property owner suspects their well water is contaminated by a neighboring agricultural operation. They should first contact:Environmental
- A Montana broker is required to supervise salespersons under their license. Failure to adequately supervise may result in:Montana License Law
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.
Study This Topic
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →