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Backup Agreement

12.2 If the force majeure event is applicable for an uninterrupted period of more than one month, any party may terminate the contract by a written notification without notice to the other party. At the end of this notice period, this contract expires. Such termination does not affect the rights of the parties with respect to a violation of this agreement that occurs prior to that termination. The agreement provides that data is backed up and retrieved via the internet, instead of transporting physical media to an external site with backup data. Unless a buyer feels that the contracted home is “the only one,” there is no particular advantage to making a backup offer, provided there is a lot of inventory on the market to choose from. In neighborhoods where inventory is limited, it is not uncommon to have multiple offers for a desirable and cheap home. Since the seller cannot enter into a contract with a second seller if his home is already in contact with the original buyer, the guarantee offer serves as a substitute for the interest. A seller whose home is a trustee will first look at the backup offers to make a new deal that best suits their needs, instead of putting the broker on the job to generate new buyers. The form also contains a form for the priority position of the offer when multiple offers are received: a seller can collect multiple backup offers or give them priority, depending on when they are received or other factors. It is not uncommon for the addition of “TBD” to place in this location so that the seller can consider all offers and prioritize them based on their best interests, if the initial trust fund ends. Once a home`s contract is accepted, the listing-realtor changes the status of the MLS (Multiple Listing Service) database. In many parts of the country, this change in status is displayed as a “contingent” and, once contingencies are removed, it is called “pending.” In California, the status changes to “active, under contract.” During the emergency phase, some sellers may choose to collect backup offers from potential buyers so that they can quickly pursue a new agreement if the current contract falls from the trust contract due to an eventuality.

Some brokers will also notice in the comments of the MLS list that the seller actively accepts backup offers, so that buyers may have an idea of the realistic possibility of buying a home they might like, but went under contract before making an offer. Once the phase is to come, the agreement moves forward with confidence. The California Association of Realtors Backup Offer Addendum has all the components necessary to create a valid backup offer, including the indication that it depends on the termination of the previous deal, the inclusion of a deposit in the offer and that the offer will not come into effect until the seller delivers signed copies of the termination of the previous contract.