Under the TREC Addendum for Sale of Other Property by Buyer, the buyer's contingency on selling their current home has a 60-day deadline. On Day 45, the seller receives a new offer from another buyer. The seller notifies the first buyer. Under the addendum, the first buyer typically has how many days to waive the contingency?
Correct Answer
B) The number of days specified in the addendum (commonly 3 days) from receiving notice
Under the TREC Addendum for Sale of Other Property by Buyer, when the seller notifies the first buyer of another acceptable offer, the first buyer typically has a specified number of days (commonly 3 days) to waive the sale contingency. If the buyer does not waive within that period, the contract terminates.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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