If your buyers have a backup contract with a termination option, Paragraph D of the Addendum for “Back-Up” Contract (TXR 1909) explains the start and end of that option period.
The addendum says that the time for giving notice of termination begins on the effective date of the backup contract. It continues without restriction until the amended effective date of the contract—the day your buyers receive notice of the first contract’s termination. At that point, the option period lasts for the time indicated in the contract.
For example, the effective date of your buyer’s backup contract with a 10-day termination option is December 1. If they become the primary contract on December 15, they have the unrestricted right to terminate from December 1 until December 25.
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2 Comments on "When Can Buyers Exercise the Termination Option in Their Backup Contract?"
Be sure that the back-up buyer pays the option fee when their back-up contract is executed (before they are in first place) so they have the right to the option period the whole time they are waiting AND when they move into first place.
What if the Buyer wants to cancel their back-up offer before it becomes the primary?