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Back-Up Contract Texas Real Estate
Addendum for Back-Up Contract Texas Real Estate
 
What is it?  
 
In a nutshell the backup contract is an agreement between a prospective buyer and a seller to purchase the property when there is already an existing contract in place.  The backup buyer and seller agree that if the first contract terminates by a certain date the backup contract will become effective immediately. 
 
Does buyer need to perform per the contract while in the backup position? 
 
The prospective buyer does need to submit earnest and option monies upon execution of the back-up contract, however no other duties are required of the buyer.  All other duties of the contract will be performed upon termination of the first contract.  
 
What is the effective date of the contract?  
 
The effective date of the back-up begins on the date of termination of the first contract.  This is when the option period would begin and all other "time is of the essence" components to the contract.  Seller must notify back-up immediately upon termination of the first contract. 
 
If the back-up contract never moves into first position does the back-up buyer receive a refund of earnest and option monies? 
 
The earnest money is refunded to the prospective buyer but the seller will retain the ... more

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