Many home buyers understand the concept of a “back-up offer” – a seller accepts a preferred offer in a multiple offer situation, but wants the option to have a back-up offer in case subjects are not removed on the accepted contract. But many home buyers don’t realize that you can actually write up an offer even after there has been an accepted offer on a property.


However, both buyers and sellers need to know a few things before entering into a back-up offer situation.


First, for sellers, you must make sure that your real estate agent, upon accepted a back-up offer, writes a back-up clause into the secondary offer, preventing you, the seller, from being legally bound to selling one property to two different buyers (awkward…). Make sure that your contract is rock solid – that is, one contract at a time.


An accepted offer is a legally binding contract. But for those of you who have bought a home know, a change to that Contract of Purchase and Sale usually constitutes a rejection of the previous contract (this is how the offer-counteroffer process works). If you have an accepted offer with a backup offer and you re-open negotiations, you could actually be rejecting your initial contract and therefore legally activating the backup offer. So always get legal advice from a lawyer well-versed in real estate transactions if this is the situation you may be finding yourself in.


For buyers, the backup offer may be a great idea in case subjects are not removed on that home you were just too late to get in. Deals fall apart all the time. However, what if you write up that backup offer and then find something else that you like? Well, just like any other offer, it can revoked prior to acceptance (we’ll leave the complications of revocation for another post). However, just make sure that this possibility is addressed in the backup offer in case of acceptance. Have your agent write in the proper clauses so that you are able to collapse the accepted offer in case that “other dream home” pops up. Just remember, certain clauses signal to the seller’s agent that your offer is leaving too many “outs”, which may weaken your negotiating position. Sellers want to see serious contracts with buyers that have the full intent to purchase.

Read full post
Categories:   Abbotsford | Abbotsford East, Abbotsford Real Estate | Abbotsford West, Abbotsford Real Estate | accepted offer | advertising | affordability | Agassiz, Agassiz Real Estate | agency | Aldergrove | Aldergrove Langley, Langley Real Estate | amortization | autism | backup offer | Bedford Landing | Bradner, Abbotsford Real Estate | Brookswood Langley, Langley Real Estate | Burke Mountain, Coquitlam Real Estate | buyers | buyers market | buying | Canyon Springs, Coquitlam Real Estate | Cedar Hills, North Surrey Real Estate | Central Abbotsford, Abbotsford Real Estate | Chilliwack E Young-Yale, Chilliwack Real Estate | Chilliwack Mountain, Chilliwack Real Estate | Chilliwack N Yale-Well, Chilliwack Real Estate | Chilliwack W Young-Well, Chilliwack Real Estate | Clayton, Cloverdale Real Estate | Cloverdale | Cloverdale BC, Cloverdale Real Estate | CMHC | completion | contract of purchase and sale | contracts | conveyancing | debt | Downtown VW, Vancouver West Real Estate | East Newton, Surrey Real Estate | Eastern Hillsides, Chilliwack Real Estate | education | Elgin Chantrell, South Surrey White Rock Real Estate | finances | for sale by owner | Fort Langley | Fort Langley, Langley Real Estate | Fraser Heights, North Surrey Real Estate | Fraser Valley | Fraserview VE, Vancouver East Real Estate | fundraiser | government | Grandview Surrey, South Surrey White Rock Real Estate | gross debt service ratio | Guildford, North Surrey Real Estate | Hazelmere, South Surrey White Rock Real Estate | home evaluation | investing | June 2012 | King George Corridor, South Surrey White Rock Real Estate | Langley | Langley City, Langley Real Estate | loan-to-value | market analysis | market update | marketing | markets | MLS | mortgage rates | mortgages | Murrayville, Langley Real Estate | negotiations | open house | Parkinsons | Port Kells, North Surrey Real Estate | Promontory, Sardis Real Estate | qualifying buyers | real estate cycle | real estate history | renting | revocation | Royal Heights, North Surrey Real Estate | rules & regulations | sales-to-listing ratio | Salmon River, Langley Real Estate | Sardis East Vedder Rd, Sardis Real Estate | schedule A | sellers | sellers market | selling | Simon Fraser Univer., Burnaby North Real Estate | speculation | statistics | Sullivan Station, Surrey Real Estate | Sunshine Hills Woods, N. Delta Real Estate | Surrey | Vancouver | Walnut Grove, Langley Real Estate | Whalley, North Surrey Real Estate | White Rock | White Rock, South Surrey White Rock Real Estate | Willoughby Heights, Langley Real Estate
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.