Who gets the money in this backup contract situation?

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08/13/2015 | Author: Editorial Staff

Does my buyer client get her earnest money and option fee back if her contract with an attached Addendum for “Back-Up” Contract (TAR 1909) never moves into the primary position?

The earnest money is refunded to her, but the seller retains the option fee. Remember that your client retained the right to terminate the backup contract at any time while in the backup position.

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Categories: Legal, Buyers, Sellers
Tags: legal faq, buyers, forms, backup contract, earnest money, option fee

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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.

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