When a seller receives several buyers’ offers to purchase, the first approved and signed offer becomes the primary contract. From that point on, all other offers are referred to as “back-up offers.” Back-up offers are commonly submitted when buyers are determined to pursue a specific property. Presenting a back-up offer is a good idea for the reason that contracts frequently fall apart over inspection and financing issues. If you are very interested in a property, submit a back-up offer, because your chances of getting the property may be better than you think. When submitting a back-up offer, review it thoroughly, present and discuss all terms of your offer with the seller. Somewhere in your offer, clearly point out that your offer is a “back-up offer.” If need be, consult an attorney to make sure your interests are properly protected. You will still be able to view other properties, but if you put an offer on another property, you will need to appropriately withdraw your back-up offer and request from the seller that your earnest money deposit be refunded. If the principal buyer’s contract fails to close, the buyer and seller will need to sign a contract release. Subsequent to signing the release, the seller should inform you that your back-up offer is now the main contract. From this point on you will need to carry on per your contract terms. You should make it a point to find out the reason why the main contract failed. It may have been due to an inspection issue. If so, try to get a copy of the first buyer’s inspection report to make sure you and the seller do not waste more time and money over an inspection concern. Good luck and happy Buying!
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