Contracts
In South Dakota real estate, a 'backup offer' is:
AA second offer made by the same buyer with a lower price
BAn offer accepted by the seller as second in line, to become primary if the first contract fails✓ Correct
CA broker's guarantee to sell the property if the primary offer falls through
DAn offer made directly by a buyer without an agent
Explanation
A backup offer is accepted by the seller as second in priority, becoming the primary contract if the first buyer's contract falls through (e.g.
People Also Study
Related South Dakota Questions
- When a South Dakota real estate transaction falls through due to a buyer's failure to obtain financing, the listing agent's obligation to the seller includes:Agency
- A South Dakota buyer's agent who has knowledge that the seller accepted a prior offer that fell through should:Agency
- A South Dakota buyer makes an offer on a property. Before the seller responds, the buyer sends a written revocation. The contract:Contracts
- In South Dakota, when both a mortgage and a judgment lien exist on a property, which has priority if the mortgage was recorded first?Escrow & Title
- A South Dakota buyer who purchases agricultural land through a Farm Credit System lender is using which type of financing institution?Finance
- A South Dakota commercial tenant has a lease with a right of first refusal to purchase the building. If the owner receives an offer to sell, the tenant must be:Property Management
- Which of the following clauses in a South Dakota real estate purchase contract allows the buyer to terminate if they cannot obtain financing?Contracts
- In South Dakota, a real estate purchase contract with an 'inspection contingency' generally gives the buyer the right to:Contracts
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.
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Study This Topic
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →