Contracts
A 'backup offer' in NC real estate is:
AAn offer automatically accepted if the first offer fails
BA second offer accepted by the seller subject to the first contract not closing, giving the backup buyer priority if the first deal falls through✓ Correct
CAn offer made by the listing broker on behalf of a buyer
DAn offer that extends the due diligence period
Explanation
A backup offer is accepted by the seller but takes effect only if the primary contract fails to close; it gives the backup buyer the right of first refusal if the primary deal falls through.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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