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An inspection contingency (also called a \u201cdue diligence contingency\u201d) gives the buyer the right to have the home inspected within a specified time period, such as five to seven days. It protects the buyer, who can cancel the contract or negotiate repairs based on the findings of a professional home inspector.
Short answer: no, the seller can't back out after an inspection. However, the seller may be able to get the buyer to walk away from the transaction based on a negative inspection report.
A backup offer is simply a contract stating a buyer will purchase a home from a seller with agreed-upon terms if the primary contract is terminated. It is a written offer that is legal and binding.
How Do Buyers Make A Backup Offer On A House? Making a backup offer is similar to making a regular offer. A seller considers and accepts a backup offer just as they would a primary offer, so it's important to strategize if you want yours to be accepted.
A seller can accept backup offers in any market, but the tactic of placing an offer on a home that's already under contract is more common when housing inventory is low. A seller may accept backup offers so if the current buyer walks there is another purchaser ready to close the deal.
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The due diligence fee is the amount paid by the buyer directly to the seller, which the seller deposits and keeps. If the deal closes, the buyer will have that amount credited back to them at closing.
Can You Withdraw a Backup Offer? A buyer could withdraw their backup offer; however, they're still obligated to follow the purchase agreement. If the current buyer does not follow the contract, they would be open to losing their earnest money deposit held in escrow.
A seller may accept backup offers so if the current buyer walks there is another purchaser ready to close the deal. By collecting backup offers, the seller avoids having to remarket the listing, show the home again or sift through numerous new offers, because backup buyers eagerly await the home on the sidelines.
A backup offer or backup contract is a an addendum to a primary offer on a home. What does it mean when a house has a backup offer? Basically, it means that if the primary offer falls through, then the seller agrees to the terms of the backup contract.
The seller holds the property in trust for the buyer until final closing and the deed has been recorded. This means that the risk of loss of damage to the property before closing and before recording, falls on the purchaser unless otherwise agreed to in a written agreement.

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