A buyer in Scottsdale submits an offer with a sale-of-home contingency, giving them 45 days to sell their current residence. After 30 days with no offers on their home, they ask their agent about their options. The seller has just received another offer without contingencies. What advice should the agent give the buyer?
Correct Answer
C) The buyer has 15 more days to sell their home, but the seller may present a kick-out clause or 72-hour notice if included in the contract
The buyer has 15 more days remaining in their contingency period, but if the seller included a kick-out clause or 72-hour notice provision, the seller could activate it when receiving a backup offer. This allows sellers to continue marketing while under contract with contingencies. Option A is incorrect because kick-out clauses allow sellers to consider other offers. Option B is incorrect because the agent should not advise immediately waiving contingencies without discussing the buyer's financial situation. Option D is incorrect because there's no requirement to match competing offers.
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Related Topics & Key Terms
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Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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