My buyer submitted a back-up offer that was accepted about a month ago, and the listing agent emailed me last week to say that our back-up contract was now primary and that he expected to have a signed termination of the primary contract soon.



Legal Q&A | Back-Up Contracts, Notice of Primary Status and the Due Diligence Fee

QUESTION: My buyer submitted a back-up offer that was accepted about a month ago, and the listing agent emailed me last week to say that our back-up contract was now primary and that he expected to have a signed termination of the primary contract soon. Yesterday, the listing agent called me and demanded to know why my client has not paid the Due Diligence Fee, and I explained that I was waiting on the termination. After speaking with my client about what’s going on, they have decided to terminate and move on. Can my buyer terminate, and if they do, do they have to pay the Due Diligence Fee?

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