A contingency frequently encountered in real estate contracts allows a seller who has accepted an offer from a buyer to continue marketing the property. This contractual stipulation provides a mechanism for the seller to entertain subsequent offers, even after an initial agreement is in place. For example, suppose a homeowner accepts an offer that is contingent on the buyer selling their current residence. The seller, while contractually obligated to the first buyer, retains the right to solicit other offers. If a more favorable, non-contingent offer emerges, the original buyer is typically given a specified timeframe (e.g., 72 hours) to remove their contingencies or relinquish the contract.
The inclusion of such a clause offers several advantages to the seller. It provides a safety net against potential delays or failures in the initial buyer’s financing or the sale of their existing property. This provision mitigates risk and protects the seller’s interests by allowing them to pursue more secure or lucrative opportunities. Its historical context lies in volatile real estate markets where deals frequently fell through, prompting sellers to seek ways to maintain control and minimize financial exposure. The benefit for sellers is increased optionality, converting their deal into one less risky, depending on market conditions.
