Contracts
A Texas buyer has signed a purchase contract. Before closing, the seller notifies the buyer that they have received a higher offer. The seller cannot accept the higher offer because:
AThe MLS rules prohibit it
BThe parties have an executed contract and the seller is bound by its terms✓ Correct
CTREC prohibits acceptance of backup offers once a contract is signed
DThe listing agreement prohibits it
Explanation
Once a contract is fully executed (all parties have signed and notice of acceptance has been given), both parties are legally bound. The seller cannot accept another offer without breaching the existing contract.
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