When buying or selling a property, it is vital to understand the legal implications of every step of the process. One of the most critical moments in a property transaction is when a seller accepts an offer from a buyer and signs a sales contract. However, what happens when the seller receives another offer from a different buyer while under contract? Can the seller accept the new offer, or must they honor the original contract?

The answer to this question depends on several factors, including the terms of the original contract and state laws. Generally, when a seller accepts an offer and signs a contract, they are legally obligated to fulfill the terms of that contract. However, there are some circumstances under which a seller may be able to accept another offer while under contract with another buyer.

One such scenario is a contingency clause in the original contract. Contingencies are conditions that must be met for the sale to proceed, and they can include things like home inspections, loan approvals, and appraisals. If any of these contingencies are not met, the contract may be terminated, and the seller can consider other offers.

Another circumstance that may allow for the acceptance of another offer is a breach of contract by the original buyer. If the buyer fails to fulfill their obligations under the contract, such as failing to secure financing or not showing up for closing, the seller may be within their rights to terminate the contract and accept a new offer.

It is also essential to note that state laws vary regarding the seller`s ability to back out of a contract or accept another offer. Some states have laws that allow for “bump clauses,” which provide a mechanism for a seller to accept a higher offer if one is presented while under contract with another buyer. Other states may require the seller to honor the original contract, regardless of any subsequent offers.

In conclusion, while a seller is generally obligated to fulfill the terms of a sales contract once it has been signed, there are some circumstances under which they may be able to accept another offer. These circumstances may include contingency clauses, breaches of contract, or state-specific laws. However, it is crucial to seek legal advice before taking any action that could potentially violate the terms of a contract or state law. As a buyer or seller, it is important to understand the legal implications of every step of the property transaction process to protect your interests.