A seller accepts an offer with a financing condition and no escape clause. Before the condition deadline, the seller receives a higher unconditional offer. What is the seller's legal position?
Correct Answer
B) The first agreement binds the seller; a second acceptance must depend on it ending
Accepting a conditional offer creates a binding agreement, so the seller cannot simply sell to someone else. A second offer can be accepted only as a back-up whose acceptance depends on the first agreement ending, for example because its condition fails or the first buyer signs a release. Without an escape clause in the first agreement, the seller has no right to demand that the first buyer waive the condition early.
Why This Is the Correct Answer
This is correct because the seller is already bound by the first agreement. The only safe way to deal with the higher offer is to accept it as a back-up that takes effect only if the first agreement ends, through a failed condition or a signed release, so the seller never has two firm contracts for one property.
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A real estate agent presents an offer to their seller client that contains an unusual condition allowing the buyer to assign the contract to another party. The seller is confused about this provision. What is the agent's primary legal obligation in this situation?
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A seller accepts a conditional offer but later receives a higher unconditional offer. The seller wants to accept the second offer. Under typical Agreement of Purchase and Sale terms, what is the seller's legal position?