If your buyers have a backup contract with a termination option, Paragraph D of the Addendum for Back-Up Contract (TXR 1909) explains the start and end of that option period.
The addendum says that the time for giving notice of termination begins on the effective date of the backup contract. It continues without restriction until the amended effective date of the contract—the day your buyers receive notice of the first contract’s termination. At that point, the option period lasts for the time indicated in the contract.
For example, the effective date of your buyer’s backup contract with a 10-day termination option is December 1. If they become the primary contract on December 15, they have the unrestricted right to terminate from December 1 until December 25.
Do they have any right to terminate before the backup contract becomes the primary contract?
Good Question
I hear buyers ae terminating the back up before they get in first position. Is that legal?
Tod, Paul, and Vicky: The second paragraph in this article answers your questions. The third paragraph illustrates how it would work in real time. Hope that helps!
So if I understand what you’re saying the Backup Contract can be terminated at any time before it moves to first position. I agree with that interpretation.