A contingency found in some real estate purchase agreements, this provision allows a seller who has accepted an offer from a buyer with a contingency (often the sale of the buyer’s current home) to continue marketing the property. Should the seller receive another acceptable offer, the original buyer is then given a specified timeframe (typically 72 hours) to remove their contingency. If the original buyer removes the contingency, they are obligated to proceed with the purchase. If they do not, the seller is free to accept the new offer. As an example, consider a buyer making an offer contingent on selling their existing house. The seller accepts but includes this safeguard. Another potential buyer emerges with a clean offer. The original buyer is notified and must decide whether to waive the contingency and buy the property or allow the seller to move forward with the new offer.
This protection mechanism provides sellers with a degree of certainty and the potential for a quicker, less complicated sale. It mitigates the risk of being tied to a contract that may never materialize due to the original buyer’s inability to sell their current property. Historically, this protection was more common in slower markets, offering sellers a competitive edge. In faster markets, sellers might simply reject contingent offers outright. The inclusion can be a significant benefit to sellers as it allows them to explore other options and potentially secure a more favorable deal without being locked into a single, potentially lengthy, transaction.
