My buyer client’s Addendum for Sale of Other Property by Buyer gives him three days after receiving notice from the seller that she has accepted another offer to waive the contingency or his contract will automatically terminate. The contract also contains a 10-day termination option for my client. Two days after the effective date, the seller notified my client that she accepted another offer. Does my client have to waive the contingency within the three-day period, or does he have until the end of the option period to waive the contingency? And if my client waives the contingency, can he still terminate under the option within the 10-day period?

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  • My buyer client’s Addendum for Sale of Other Property by Buyer gives him three days after receiving notice from the seller that she has accepted another offer to waive the contingency or his contract will automatically terminate. The contract also contains a 10-day termination option for my client. Two days after the effective date, the seller notified my client that she accepted another offer. Does my client have to waive the contingency within the three-day period, or does he have until the end of the option period to waive the contingency? And if my client waives the contingency, can he still terminate under the option within the 10-day period?

The time periods and rights provided under the contingency addendum and the termination option are completely independent. If the buyer doesn’t waive the contingency within the three days provided for in the addendum, the contract will automatically terminate. His right to terminate within the 10-day termination option period is not diminished by his election to waive the contingency.

Source: TAR

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