What should a seller consider when accepting a buyer's contingency?

What should a seller consider when accepting a buyer's contingency?

• A. Leaving the property on the market indefinitely
• B. Including an escape clause in the agreement
• C. Locking in the sale price
• D. Waiting for the buyer to sell their property

Answer: (B)

When a seller considers accepting a buyer's contingency, including an escape clause in the agreement is a prudent choice. This clause allows the seller to have the flexibility to terminate the contract if specific conditions are not met within a certain timeframe. By incorporating an escape clause, the seller ensures that if the buyer's contingency—such as the sale of their current property—fails to materialize, they can still keep their options open and potentially pursue other buyers. This is particularly important in a competitive real estate market, where sellers may not want to be locked into a prolonged agreement with an uncertain outcome. By having this clause in place, the seller can mitigate the risk of losing potential offers from other interested buyers while the current buyer works through their contingency.

When a seller considers accepting a buyer's contingency, including an escape clause in the agreement is a prudent choice. This clause allows the seller to have the flexibility to terminate the contract if specific conditions are not met within a certain timeframe. By incorporating an escape clause, the seller ensures that if the buyer's contingency—such as the sale of their current property—fails to materialize, they can still keep their options open and potentially pursue other buyers.

This is particularly important in a competitive real estate market, where sellers may not want to be locked into a prolonged agreement with an uncertain outcome. By having this clause in place, the seller can mitigate the risk of losing potential offers from other interested buyers while the current buyer works through their contingency.