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A house we are considering has a contingency offer already on it-- contingent on buyer 1 selling their house first. If we make our offer and the seller accepts it, I have been reading that buyer 1 has a couple of days to either remove their contingency or back out. My question is when does "mutual acceptance" start in our case? The day the seller agrees to our offer or once buyer 1 backs out?
Besides what you've been reading, you need to know what's in the contract. Some sellers for whatever reason don't put in a kick out clause. They just let it run for a couple of months. I know some people who did that just because they liked the buyers.
Some will say 24 hours, 24 hours, 36 hours, 72 hours for the buyer to remove their contingency.
Once the buyer removes the contingency, your "effective" date is now day 0 and the next day will become day 1 for counting purposes. Your "execution" date is the date everyone signs it into a contract, but none of your contract dates start counting until you have a new "effective" date.
To put it another way, as long as there is still another buyer under contract on the property, your contract is never "effective".
Somebody who practices real estate in WA can chime in, but at least in my area, the seller accepting your back-up offer doesn't automatically invalidate the contingencies existent in the first contract. Your contract doesn't become executable until and unless the first contract doesn't perform; in your case, the time you would have to wait before knowing whether you've entered "pole position" depends on the timing of the house sale contingency written into the first contract. Could be 30 days, could be 60 days or more, could be two weeks, who knows? But, at least in my area, the acceptance of a back-up offer doesn't mean the purchaser under contract has to automatically relinquish their contingencies.
I have been reading that buyer 1 has a couple of days to either remove their contingency or back out.
It all depends upon the terms of their contract.
Quote:
Originally Posted by berniekosar19
But, at least in my area, the acceptance of a back-up offer doesn't mean the purchaser under contract has to automatically relinquish their contingencies.
It's pretty much the same in my area. A kick-out clause is relatively rare around here.
It's pretty much the same in my area. A kick-out clause is relatively rare around here.
Yeah, I've never heard of something like that for a back-up offer; kind of sounds like the definition of torturous interference with a contract, to tell you the truth. You can only have one executable contract out on a property at any given time, so the terms of a back-up contract/offer taking precedence over the contract that has actually been executed seems odd to me.
Yeah, I've never heard of something like that for a back-up offer; kind of sounds like the definition of torturous interference with a contract, to tell you the truth. You can only have one executable contract out on a property at any given time, so the terms of a back-up contract/offer taking precedence over the contract that has actually been executed seems odd to me.
Kick out is common in some places. Second contract is contingent on close of first. First requires removal of sale of other house contingent within a short period upon receipt of another acceptable offer.
Very difficult to get a contract contingent on the sale of another house here unless the other house is in a contract. No hope of ever getting one without kickout clause.
Kick out is common in some places. Second contract is contingent on close of first. First requires removal of sale of other house contingent within a short period upon receipt of another acceptable offer.
Very difficult to get a contract contingent on the sale of another house here unless the other house is in a contract. No hope of ever getting one without kickout clause.
Kick-out clause is one thing; I was more referring to the OP phrasing their question as if by the seller merely accepting their back-up offer, it would automatically invalidate the contingencies in the already accepted first contract.
Kick-out clause is one thing; I was more referring to the OP phrasing their question as if by the seller merely accepting their back-up offer, it would automatically invalidate the contingencies in the already accepted first contract.
OP appears to understand the protocol. He is simply asking when His contract starts....which is when the sale of other home contract is voided.
A house we are considering has a contingency offer already on it-- contingent on buyer 1 selling their house first. If we make our offer and the seller accepts it, I have been reading that buyer 1 has a couple of days to either remove their contingency or back out. My question is when does "mutual acceptance" start in our case? The day the seller agrees to our offer or once buyer 1 backs out?
Here it is once buyer #1 cannot fulfill their contract. It could be 72 hours, 30 days..whatever is written into the original contract.
Now from the seller's viewpoint, how much stronger would your contract be than contract #1?? Buyer #1 may be closing on the sale of his home in two weeks or less.
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