Contracts
Under Wisconsin law, a signed purchase agreement binds both the buyer and seller. If the seller wants to accept a competing higher offer before closing, the seller must first:
ASimply accept the higher offer — it's their property
BProperly terminate the first contract (which may require mutual agreement or a contractual right) before accepting the second✓ Correct
CGet DSPS approval to terminate
DGive the first buyer 72 hours to match the higher offer
Explanation
A signed purchase agreement is a binding contract; the seller cannot simply accept a higher offer without first lawfully terminating the first contract through mutual release or other contractual means.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
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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