I’m the back-up buyer. When does my option period start?

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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. 

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Categories: Buyers
Tags: backup offer, buyers, option period


Comments

Scelena Sebastian on 03/12/2016

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

Grace on 02/26/2016

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?

Trish Ricklefsen on 07/01/2015

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. )

Dana Kuvent on 07/01/2015

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.

Trish Ricklefsen on 07/01/2015

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.

Deborah Boyd on 06/30/2015

When are escrow and option checks due?


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