In today’s busy market, I’m getting calls about how to handle multiple offers. A scenario that’s confusing people is when sellers have accepted an offer that includes the Addendum for Sale of Other Property by Buyer (TXR 1908, TREC 10-6) and then receive a back-up offer with more favorable terms than the first offer. Just because the sellers have received a back-up offer does not give them the ability to ask for the first buyers to waive their contingency. Instead, the sellers must execute the second offer with the Addendum for Back-up Contract (TXR 1909, TREC 11-7) attached before they can ask the first buyers to waive their contingency. The sellers can use Notices Regarding Contingency Under Addendum for Sale of Other Property by Buyer (TXR 1912) to notify the first buyers of the accepted back-up offer and to allow the first buyers to either waive their contingency or terminate the transaction.
—Ryan Bauman, staff attorney