Newsflash: CA Back-Up Offer Addendum Questions (BUO)

Under what circumstance would it make sense for a potential buyer to sign a Back-Up Offer Addendum with the following checked:Time Periods in the agreement for investigations, contingencies, covenants and other obligations [x] all time periods shall begin as provided in the Agreement. However, if the date for Close of Escrow is a specific calendar date, that date shall NOT be extended, unless agreed to in writing by Buyer and Seller.If signed, isn’t this basically saying that the clock starts ticking for buyer at that moment to take care of investigations, inspections, contingencies, etc? Why would buyer want to spend time and money on this while his offer is still just a back-up? If deal closes with original buyer, then the back-up person will have lost that time and money wouldn’t they?Also, can buyer suggest changes to Seller’s Addendum in order to make buyer more comfortable in submitting a back-up offer or is it a take it or leave it kind of thing and what the seller has filled out is final? If changes can be made to back-up offer form per buyer’s request, is there a form that must accompany this or is communication through e-mail or agent relaying the message sufficient?And lastly, I notice that there is a blank spot for back up number to be filled in. I saw somewhere that seller can write in TBD (To Be Determined) in that blank spot. Is this done so that the seller has the freedom to choose the most attractive offer once the original one doesn’t go through? If yes, what about the dates that the many back-up offers are accepted? Isn’t seller obligated to go down the list in time order whether by the back-up position number or dates?

Read more at https://www.reddit.com/r/RealEstate/comments/eumunx/ca_backup_offer_addendum_questions_buo/?utm_source=ifttt

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