A seller in Stockton receives two offers simultaneously on her $480,000 home. Offer A is for full price with a 17-day inspection and 21-day loan contingency. Offer B is for $500,000 with no contingencies and proof of funds. Under California law and the C.A.R. RPA, what is the seller's obligation regarding the two offers?
Correct Answer
A) The seller has the right to accept, reject, or counter either or both offers at her discretion
Under California law, the seller has full discretion to accept, reject, or counter any offer. There is no legal obligation to accept the highest offer or to follow a specific protocol when multiple offers are received.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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