Jennifer is selling her home in Anne Arundel County. She receives an offer that includes a home sale contingency, meaning the buyers must sell their current home before they can purchase Jennifer's property. Jennifer receives a second offer without any contingencies. Under Maryland contract practice, which of the following best describes Jennifer's options regarding the first offer?
Correct Answer
B) Jennifer may accept the second offer as a backup and issue a notice to the first buyers to remove the home sale contingency within a specified period or the contract terminates
Under Maryland contract practice, when a seller has an accepted offer with a home sale contingency and receives a subsequent bona fide offer, the seller may issue a 'kick-out' or 'bump' notice to the first buyers, requiring them to waive the home sale contingency within a specified period (commonly 72 hours) or the contract will terminate. The seller may simultaneously accept the second offer as a backup contract. This protects the seller's ability to move forward if the first buyers cannot proceed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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