Many buyers and sellers don’t know the advantage of a back-up contract.
Unfortunately, a great number of sellers' agents quit marketing the property once they have a contract in place, but it is quite common for contracts to fall through before closing and the home ends up back on the market. A backup contract, which is legally binding and acknowledges the contract that is in first position, moves next in line should the first buyer back out.
This is advantageous to the
seller for many reasons, including fewer days on the market and less chance of
having to reduce the price.
A backup contract can also be advantageous to a buyer who wanted to purchase the property but did not get their offer in quick enough. The buyer typically pays a reduced amount for earnest money so their funds are not tied up while looking for a different property.
The Texas Real Estate Commission has a promulgated form specifically for this. If you have questions or would like more information, please call, email or drop a message below.
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