February 01, 2018

Members sometimes call when a seller is under contract but wants to accept a second offer that is higher. However, accepting the second offer is problematic. Doing so can bind the seller to two contracts to sell his property. An alternative that won’t create problems for the seller would be to accept the second offer using the Addendum for “Back-Up” Contract. Then, if the original contract does not terminate by the date stated in the addendum, the backup contract is terminated. If the original contract is terminated by the date in the addendum, the backup contract will move into the primary position. —Kinski Moss, deputy general counsel