A buyer wants to submit a back-up offer on a property that is already under contract with another buyer. The agent should use which TREC addendum?
Correct Answer
B) The Addendum for Back-Up Contract
The TREC Addendum for Back-Up Contract is used when a buyer makes an offer on a property that is already under contract. This addendum specifies that the back-up contract becomes effective if the first contract terminates.
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Related Topics & Key Terms
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Related Concepts
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.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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