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What Is A Back-Up Agreement?
Question: What is a "back-up" agreement?
Answer: A property is not actually "sold" until a sale closes and title passes to another party. Unless prohibited by the sale agreement, a seller can seek a "back-up" agreement in case the original offer falls through. A back-up agreement is a complete sales contract that includes all terms and conditions but it has no effect if the first deal succeeds. However, if the first contract fails then the back-up agreement comes into play. Because real estate agreements sometimes fail because of financing or inspection issues, a back-up contract can open new opportunities for both buyers and sellers.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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