My client wants to submit an offer for a property already under contract using the Addendum for “Back-Up” Contract. How do we determine the contract’s effective date?

1 minuteread
  • Home
  • /
  • Knowledgebase
  • /
  • Contracts and Forms
  • /
  • My client wants to submit an offer for a property already under contract using the Addendum for “Back-Up” Contract. How do we determine the contract’s effective date?

The effective date for purposes of depositing earnest money and paying any termination option fee is the date of final acceptance. This is the date that the last party to sign the backup contract communicates acceptance back to the other party or the other party’s agent, if applicable.

If the first contract terminates, the effective date changes to the amended effective date. This is the date the seller notifies the backup buyer that the first contract is terminated and the backup contract becomes the primary contract. All performance obligations under the contract—other than depositing earnest money and paying any termination option fee—use the amended effective date for purposes of performance.

Source: TAR

X
Welcome to Realty Nation
wpChatIcon
Scroll to Top