Real estate glossary
Backup offer
An offer you accept in second place, which only moves into first place if the current deal falls through.
A backup offer is an offer you accept on the condition that your existing contract cancels. The backup buyer is lined up and ready, but has no right to buy unless the first deal ends.
Backup offers are usually documented with a specific addendum that spells out when the backup moves into first position and when its deadlines start running.
What it means for you as a seller
A backup offer can take pressure off if your first buyer is shaky, but it does not let you cancel the first contract to take a better offer.
Related terms
- Purchase agreementThe written contract a buyer uses to make an offer; once both sides sign it, it sets the price, deadlines and terms of the sale.
- CounterofferA response to an offer that changes some of its terms; it rejects the original offer and proposes new terms instead.
- ContingencyA condition in the contract that must be met — or removed — by a deadline, letting the buyer cancel if it is not satisfied.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .