Home Buying in 53005>Question Details

Melissa, Home Buyer in 53005

Bump Clause in Primary Offer, What does this mean for Back up offers?

Asked by Melissa, 53005 Wed May 19, 2010

We are in the process of putting in an offer on a lot. The lot already has an accepted offer on it, which means if our offer is accepted we will be in a secondary/back up position. At one point the seller's agent told us that there is a 72 hour bump clause in the accepted contract and we would be wise to make an offer. I know it would benefit the agent and his sellers to have a back up, so my question is what kind of contract language should be in the contract to recognize this bump clause? All the language I have seen leaves the amount of time we will be waiting to find out if we are primary wide open and we will become primary when we are notified in writing by the seller. Does the bump clause change this? Is is possible to put in this contract that the seller and the primary buyer have 72 hours to remove all contingencies and if those are not removed we will become primary? Please help we're not getting any straight answers from anyone! Thank you!

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Melissa’s answer
Thank you for your response...Would that 72 hr. first right of refusal play a role in the contract language as well? Is it possible to tell them that after that 72 hours, if the primary buyer does not remove the contingencies we are the primary buyer. Or would we need to keep the borad language?
0 votes Thank Flag Link Wed May 19, 2010
Melissa, The term "bump clause" generally refers to an offer that has a contingency which may allow a secondary offer to Bump the first offer out and place a secondary offer into a primary position. The most common contingency would be a home sale contingency. If the secondary offer does not have the same contingency, it's possible that the seller would serve notice to the primary offer that a secondary offer has been accepted. If the primary offer does not remove that contingency within the time frame permitted in the primary offer, the secondary offer would be moved into the primary position.
0 votes Thank Flag Link Tue Feb 4, 2014
from my experience, we us a 72 hr. first right of refusal. Meaning the primary has 72 hr. to remove all contingencies and have financing in place to close. I have never heard of the term "Bump Clause" but it sounds like it is the same thing.
0 votes Thank Flag Link Wed May 19, 2010
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