In an Alberta transaction, the buyer's offer includes an 'escape clause' (time clause). What is the purpose of this clause?
Correct Answer
C) It lets the seller keep marketing, giving the buyer a specified time to remove conditions if another acceptable offer arrives
An escape clause (time clause) in an Alberta purchase contract allows the seller to continue marketing the property even after accepting a conditional offer. If the seller receives another acceptable offer, the original buyer is given a specified period (typically 24-72 hours) to waive their conditions or the contract terminates.
Why This Is the Correct Answer
An escape clause allows the seller to continue marketing the property after accepting a conditional offer. If a new acceptable offer is received, the seller notifies the original buyer, who then has a specified period (typically 24-72 hours) to waive all remaining conditions or the first contract terminates, freeing the seller to accept the new offer.
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Previous Question
In an Alberta purchase, the buyer's offer is conditional on a home inspection satisfactory to the buyer in the buyer's sole discretion. The inspection finds only minor cosmetic issues, but after honestly reviewing the report the buyer is not satisfied. Can the buyer decline to waive the condition and end the contract?
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