Search

Categories

Seller is under contract but receives a higher offer from another Buyer.

Question:  Say a Buyer #1 and Seller are under contract. Seller then receives a much higher offer from Buyer #2. Seller now wants to move forward with Buyer #2. Does the Seller have an out with Buyer #1?

Answer:  In general, the answer is no. If a Seller cancels the contract without a right to do so, then this creates a default scenario which triggers Section 16.2 of the REPC. Please be aware that in this Section, the BUYER gets to CHOOSE the remedy for the Seller’s default, which may include a sum equal to the earnest money, specific performance, or any other remedies available at law.