While laws vary by state, in general, up until that contract is signed by both parties—even after counteroffers have been sent out—all new offers can be considered and accepted. Once both parties have signed it, however, the seller is pretty much locked into the deal.
Contingent – With No Kick-Out Clause
This means the seller can't accept another buyer's offer unless the current buyer can't meet the conditions of their offer. This provision protects the current buyer because they can't be “kicked out” unless they don't meet the contingencies.
Technically, a seller can accept another offer while under contract. However, doing so could result in legal consequences. Once a seller accepts an offer and signs a contract, they are legally bound to that contract until it is either fulfilled or terminated.
However, it's completely reasonable to accept several backup offers while you are under contract (in case your primary buyer falls through).
Yes, the seller can accept another offer after a counter-offer, but they will probably have to inform the first buyer that they have received a new offer. The original buyer then has the right to match the new offer or walk away from the deal.
Generally speaking, neither you nor the vendor has the right to unilaterally change the agreed-upon terms. But some contracts are crafted in anticipation of future changes in the size and scope of projects, with the flexibility for price adjustments.
A typical contingency period typically lasts between 30 and 60 days. With a bump clause, however, the home remains on the market. If another buyer makes a better offer, the seller must notify the original buyer. Then that buyer has only a few days to waive their contingency or increase their offer.
Accepting Backup Offers
Secondary buyers can submit an offer and if the seller accepts, they are then in a backup position. If the first buyer cancels, the second buyer will automatically enter escrow on the property.
Keep in mind that once you make a counter offer, the original offer (or, in some cases, the original counter offer) is off the table. If your counter offer is rejected, you usually cannot go back and accept the previous offer.
Home sellers aren't obligated to accept any offer on their home—no matter how much money it's for.
The short answer is no, they cannot. However, listing agents have a legal and ethical obligation to negotiate the best terms for their clients and to share multiple offer details with them.
Because no one can force a seller to sign (contracts must always be signed freely and without undue influence to be binding), a seller doesn't have to accept even a supposedly "perfect" offer.
In general, the seller's decision is fairly straightforward; optimize your timing and strategy to nab the offer with the highest price. However, there are some situations where you might accept the lower of two competitive bids, or a price much lower than your asking price.
Why Do Sellers Not Like Contingency Offers? Oftentimes, sellers prefer not to accept contingency offers due to uncertainties in the sale process. Since contingency offers are conditional upon several factors, such as financing and inspections, they can delay or jeopardize the home's sale.
Among contingent offers, less than five percent fall through, according to multiple sources. Broken offers may arise because the buyer isn't able to secure financing or because the seller isn't willing to lower their listing price after a low appraisal.
“'Active with a backup offer' could mean the seller accepted an offer but doesn't feel sure that the buyer is a strong candidate, so they want backups in case the first offer falls through,” says Alejandro Figueroa at Keller-Williams Realty in Fort Lauderdale, FL.
Declining the job offer after you've signed a contract could technically be a breach of that contract, and the company could be within its legal rights to sue for damages, according to BrioHR, a human resources software company.
Whether you accept the first offer on your house or not depends on the type of market you're in. While there's no guarantee your home will receive more than one offer, but if you're in a seller's market (where properties are hot and inventory is low), you have a better chance of getting more than one.
Yes. Technically, anyone can turn down a job offer, back out of a job already started, or renege on an acceptance at any point. Most states operate with what is called “at will employment.” This means the employee and the employer are not in a binding contract.
Key Takeaways. “Under contract” means the seller has accepted an offer, but there are still conditions to clear before closing. “Active under contract” means the seller is welcoming backup offers. “Pending” means the home is under contract, and all conditions have been met for the deal to close.
Sellers can sign more than one backup offer, as long as the seller makes the situation clear to everyone involved. For example, you could be in the fourth position if there are four backup offers. Ideally, you want to be in the first position, because this is the offer that's next in line.
If you don't have a contingency to protect you if that happens, you'll most likely lose your earnest money deposit and, in some cases, be subject to other penalties, however. If you back out for any reason and are not covered by a contingency, you'll most likely lose your deposit.
The average length of a home sale contingency offer is 30 to 90 days. The length is set at the time of the home purchase agreement. The home buyer and seller agree on a contingency time frame when they sign the purchase agreement. Home sale contingencies, for example, are usually 30 days.
A survey from the National Association of REALTORS® found that only 5% of home sale contracts in the months of June, July and August of 2022 were terminated. Only 15% of sales contracts were delayed during those 3 months. Buyers and sellers, then, shouldn't worry that a contingency automatically dooms a home sale.
Keep in mind: Legally, a seller's best bet for successfully backing out of a sale is if a contingency written into the contract has not been met. Legally, a seller's best bet for successfully backing out of a sale is if a contingency written into the contract has not been met.