What must happen for a buyer to terminate their backup contract without liability?

What must happen for a buyer to terminate their backup contract without liability?

• A. They must inform the seller verbally
• B. They must provide written notice before receiving primary status
• C. They must wait until the primary contract is executed
• D. They must consult an attorney for formal termination

Answer: (B)

For a buyer to terminate their backup contract without liability, it is necessary for them to provide written notice before receiving primary status. This requirement is crucial because a backup contract is designed to take effect only if the primary contract fails or is terminated. By giving written notice, the buyer formally communicates their intention to withdraw from the backup agreement, which ensures clarity and prevents any potential disputes later on regarding their commitment to that contract. The written notice serves as a documented record of the buyer's decision, which is important in real estate transactions where legal obligations are concerned. Without this notice, they may inadvertently assume liability or obligations under the backup contract.

For a buyer to terminate their backup contract without liability, it is necessary for them to provide written notice before receiving primary status. This requirement is crucial because a backup contract is designed to take effect only if the primary contract fails or is terminated. By giving written notice, the buyer formally communicates their intention to withdraw from the backup agreement, which ensures clarity and prevents any potential disputes later on regarding their commitment to that contract.

The written notice serves as a documented record of the buyer's decision, which is important in real estate transactions where legal obligations are concerned. Without this notice, they may inadvertently assume liability or obligations under the backup contract.