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I'm thrilled to death, but just want to make sure nothing goes sour, as the inspection and transfer of the remaining earnest funds has not occurred yet. The remaining earnest funds will be transferred upon the end of the client-attorney approval period.
Have you already made an earnest money deposit? Generally, there needs to be consideration in order for a contract to be valid. (Consideration is not always money--but that's the easiest to show).
As long as you have a valid contract you have little to worry about--provided you can keep up your end of the bargain.
Here, the seller can definitely accept a backup offer, negotiating it to a backup Contract.
However, your current contract would be Primary and enforceable, as long as all signatures and initials were completed, and the seller cannot just toss it for a better offer.
If you would terminate for any reason, the Backup Contract would become Primary, without the house ever going back onto Active status on the MLS.
Great explanation. This is how it works in our market.
A few years ago we were the back-up offer on a house I wanted SO badly. Even though our price was higher, the primary offer had NO contingencies, not even an inspection contingency. I kept hoping and praying SOMETHING would fall through, but our agent kept telling me that the primary contract, as signed, was pretty ironclad.
So even though we offered more, because they had a signed contract with NO contingencies, the first folks got the house because they were first.
Yes, I think my question has been answered, and we did given an initial portion of the earnest money ($1K) and we will provide the rest of the $14K upon the end of the client-attorney approval period (after all inspection contingencies have been met). I really really want his house, with the exception of the fact that it might burn down or cave in. Let's hope it's got decent bones!
My lawyer just told me they cannot accept other offers. I haven't been able to get in touch with her for two days, so I was worried. Thanks for all your responses.
who is your agent? none? the listing agent? I'd be shocked in any state that a seller cannot accept a backup offer. as has been stated pretty clearly, the seller can't kick you out for a better off, if you don't have a contingency clause (selling your current home) allowing them to do so.
who is your agent? none? the listing agent? I'd be shocked in any state that a seller cannot accept a backup offer. as has been stated pretty clearly, the seller can't kick you out for a better off, if you don't have a contingency clause (selling your current home) allowing them to do so.
I have seen it here before, and on ActiveRain, with agents in some states saying that BU Offers are not allowed.
Don't know how accurate that is, partly because so many agents speak imprecisely, i.e., think they write "Contracts" instead of "Offers."
I don't know if this question has been asked before, but I recently obtained a contract on a home. I really have no home selling contingencies, and I can move in whenever the home closes. We have a healthy down payment and excellent FICO score and we've been approved for an ample amount for a loan. I can also make the $15K earnest money they require. My question is this, can they still accept other offers if we both signed the contract? We are still in our inspection client-attorney appoval period. The inspection is coming up next week. I wish I could get one sooner, but this inspector is really booked (he's really good!).
The problem is the realtor hasn't marked the home contingent or pending yet on MLS, so it's still showing up as active.
I would like to deter others from viewing the home as I think I got the home for a great price. It's someone who wants to get rid of it as his parents, the original owners, have died, and he just wants the $$$$, so he only came up a little in price from my low ball offer! I'm thrilled to death, but just want to make sure nothing goes sour, as the inspection and transfer of the remaining earnest funds has not occurred yet. The remaining earnest funds will be transferred upon the end of the client-attorney approval period.
There's nothing you can can stop the sellers from taking back-up offers, just in case, for some wild reason, you aren't able to complete the transaction (you might get hit by a bus, you might get suddenly transferred across the country, you might drop dead from a heart attack . . . agents have seen it all . . . ) It's not your house, yet, and you really don't have much say in how they choose to market it. Different MLS's handle it differently, but around here, some agents don't list it as contingent until the property is out of due diligence -- because up to that point, a buyer can skip out for just about any reason, up to and including "I don't like the color of the paint in the powder room". Agents are encouraged, of course, to list it as "Contingent - Due Diligence", but that tends to discourage shoppers.
But as far as getting a better offer while you are under contract . . . no, they can only accept it as a backup. They might suddenly get very, very picky about holding you to EXACTLY the terms of the contract -- no leeway on extending due diligence or financing deadlines, for example. But as long as you are holding up your end of the contract, they can't really back out, now. Not that sellers haven't tried . . . but it gets really, really messy.
Don't worry -- tell your agent and/or attorney your concerns, but as long as you are fulfilling the terms of the purchase and sale agreement, you should be fine.
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Agents are encouraged, of course, to list it as "Contingent - Due Diligence", but that tends to discourage shoppers. 
