Contracts
In Ohio, a seller who accepts an offer and then receives a higher offer cannot simply cancel the first contract because:
AThe first contract is void until the earnest money clears
BThe first contract is a binding agreement; canceling without cause constitutes a breach✓ Correct
CThe seller can always cancel within 72 hours of acceptance
DThe seller must obtain OREC permission to cancel
Explanation
Once mutually accepted, a real estate contract is binding. A seller who cancels to pursue a higher offer is in breach of contract and may be liable for damages or specific performance.
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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.
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.
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.
Math Concepts
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