A Minnesota purchase agreement contains a home sale contingency with a 72-hour kick-out clause. The seller delivers a 72-hour notice on Monday at 9:00 AM after receiving a second offer. The buyer's agent calls the listing agent at 8:45 AM on Thursday (72 hours and 45 minutes later) to verbally waive the contingency. The seller has already signed the second purchase agreement at 8:00 AM Thursday. Which of the following best describes the legal situation?
Correct Answer
C) The 72-hour period likely expired at 9:00 AM Thursday; the buyer failed to waive in time, and the seller may have validly proceeded with the second buyer
The 72-hour period that began Monday at 9:00 AM expired Thursday at 9:00 AM. The buyer's agent called at 8:45 AM Thursday—technically before the deadline—but the waiver must be communicated in writing under standard Minnesota purchase agreement practice to be effective. A verbal call to the listing agent is generally insufficient to constitute a valid waiver. Furthermore, even if the timing were close, the seller had already signed the second agreement at 8:00 AM Thursday, before the buyer's call. Under these facts, the seller's position is defensible: the waiver was not properly delivered in writing, and the seller proceeded within their contractual rights.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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.
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