I’m the back-up buyer. When does my option period start?
06/30/2015 | Author: Legal Staff
A seller accepted my back-up offer on a home that’s currently under contract to another buyer. I paid for a 10-day option to terminate, but when do my 10 days start? I don’t know if I’ll even get the chance to purchase the house.
You have the option to terminate at any time while you’re in the back-up position. The option period specified in Paragraph 23 of the contract—10 days, in your case—doesn’t start until your contract becomes the primary contract, which is the date you receive notice from the seller of the termination of the first contract.
Have a question about buying, selling, or leasing property in Texas? Ask us. Not all submitted questions will be answered.
The question is seller has accepted a contract on their property closing date on a FHA b financing contract was 3/9/16. I ( agent ) received a request to change the closing date until the 3/18/16. Seller in return offered to give the buyer a closing date of 3/14/16. No contract date have
been changed or agreed up on by both buyer & seller in writing.
Seller offered his property on a back up contract, to the first contract if it didn’t close by 3/15/16. the back up offer would net the seller about 4 K more then the first contract.
Mortgage co sent email on Fri. 3/11/16 the first buyer got loan approval & the FHA appraisal come in at sales price, requiring no repairs.
As the agent I need to know if seller/we have to allow the first buyer contract the extra time for required dock prep time to close. 3/18/16.
Or does Seller have the right to go to the back up offer and get more money for his property. I Need to know company standings. S. Sebastian
I am a back-up offer and they required me to pay a $100 option period. I was just informed today that they 1st offer was accepted and the contract was terminated. Why did I have to pay and option period for a house I never had the option to buy? Do they have to give me back my money since I was never the Primary Contract?
The 1st contract has to terminate before the back-up option goes into effect or ‘begins’. )The original question doesn’t state that the original contract terminated. )
Trish, that’s exactly what a “back up offer” is. This insures that the “back up” is first in line if the first deal falls through.
Stop! A seller cannot accept your back-up if the property is “under contract to another buyer”. Where are the agents in this transaction? This site is misleading to the public.
When are escrow and option checks due?
Leave a Comment
The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.
While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.