Patricia is buying a home in Fort Collins. Her CREC contract includes a sale-of-buyer's-property contingency, meaning the purchase is contingent on Patricia selling her current home first. The seller receives a better offer and wants to accept it. Under the CREC-approved Contract to Buy and Sell Real Estate, what mechanism allows the seller to proceed?
Correct Answer
A) The seller may invoke the Notice to Buyer to Remove Contingency, giving Patricia a deadline to waive the contingency or terminate
Under the CREC-approved Contract to Buy and Sell Real Estate, when a contract includes a sale-of-buyer's-property contingency, the seller retains the right to continue marketing the property. If the seller receives another acceptable offer, the seller may deliver a Notice to Buyer to Remove Contingency. This gives the buyer a specified time period (as stated in the contract) to either waive the contingency and proceed with the purchase, or terminate the contract and receive a refund of earnest money. This provision protects the seller while giving the buyer a fair opportunity to decide.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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