Contracts
A NJ seller who receives a backup offer while under contract with a primary buyer may:
AImmediately cancel the primary contract
BAccept the backup offer conditionally, pending termination of the primary contract✓ Correct
CShow the backup offer to the primary buyer to pressure them
DNot acknowledge the backup offer until the primary contract closes
Explanation
A seller may accept a backup offer contingent on the primary contract falling through, which provides security if the primary deal collapses. They should not use the backup offer as pressure on the primary buyer, as that would be bad faith dealing.
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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.
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