Home Buying in Virginia>Question Details

Steve, Home Buyer in Bethesda, MD

what is a backup contract?

Asked by Steve, Bethesda, MD Fri Feb 8, 2008

My agent want me to sign a backup contract for a house that a offer was given and ratified with another buyer. Could you provide more information on a backup contract? What's the pro and con? Thanks!

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Answers

4
Oftentimes a buyer agent might have you do a back up offer to get your feet wet and to make you more attached to that agent.

You have the right to pull the other offer at any time.

Also note that a back up offer can HELP the other deal happen. In other words if there is any problems, the listing agent tells the buyer agent "we have a back up offer, so you better not ask for too much in repairs."

Another option is to verbally tell the listing agent "if the seller so much as sneezes, let us know."

Frank
1 vote Thank Flag Link Mon Feb 18, 2008
Can a buyer request proof of a back up contract/offer when negotiating an amendment? Is the listing agent required to disclose once he uses it to pressure the buyer?
0 votes Thank Flag Link Thu Oct 23, 2008
A "back-up put you in position to be "first" if the accepted contract fails for any reason whatsoever. Typically, the "backup" has a cancelation clause that terminates the "backkup" for any reason the "backup buyer" decides, for example, if you find a better property and make an offer on it. Discuss the pros and cons with your broker to decide if it is in your best interests to make such a "backup offer".
0 votes Thank Flag Link Fri Feb 8, 2008
A back-up contract is a contract that would be able to take the place of an exsisting contract; should the 1st one fall apart or become voided. If your agent feels this is beneficial; perhaps the listing agent gave him some indication that this 1st deal is falling apart.
I would talk to him about it. If he is your Buyer's agent - you should both have very open communication. Ask him point blank why he thinks it is a good idea....
0 votes Thank Flag Link Fri Feb 8, 2008
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