A Minnesota purchase agreement includes a sale-of-buyer's-home contingency. The seller receives a second offer and delivers a 72-hour notice to the buyer. The buyer fails to waive the contingency within the 72-hour period. What is the most likely outcome under Minnesota contract practice?
Correct Answer
C) The seller may declare the original contract void and proceed with the second buyer
Under Minnesota purchase agreement practice, when a contract contains a sale-of-buyer's-home (home sale) contingency, the seller typically retains the right to continue marketing the property. If the seller receives another acceptable offer, the seller may deliver a notice (commonly referred to as a 72-hour or 'kick-out' notice) requiring the buyer to waive the contingency within the specified period. If the buyer fails to waive the contingency within that timeframe, the seller may declare the original contract null and void and proceed with the new buyer. The original buyer's earnest money is returned.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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