Backup Contract
Barron's Real Estate Dictionary:
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Backup Contract
A contract to buy real estate that becomes effective if a prior contract fails to be consummated.
Example: Abel contracts with Baker to sell a property contingent on Baker’s ability to obtain financing within 30 days. In the meantime, Abel arranges a backup contract to sell to Collins, should Baker fail to obtain financing.
Example: Abel contracts with Baker to sell a property contingent on Baker’s ability to obtain financing within 30 days. In the meantime, Abel arranges a backup contract to sell to Collins, should Baker fail to obtain financing.
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Backup Contract
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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