In the event of a binding offer, who holds the rights to the contract if the buyer passes away?

In the event of a binding offer, who holds the rights to the contract if the buyer passes away?

• A. The seller
• B. The buyer's estate
• C. The listing agent
• D. The court

Answer: (B)

In the case of a binding offer in a real estate transaction, if the buyer passes away, the rights to the contract are typically transferred to the buyer's estate. This occurs because the buyer's estate represents their legal interests and assets after their death, including any ongoing contracts. The estate has the authority to determine how to proceed with the transaction, which may include completing the sale, renegotiating terms, or even canceling the contract depending on the specific circumstances. The seller does not automatically retain the rights to the contract upon the buyer's passing without the involvement of the estate, as the contract is a mutual agreement that requires both parties to fulfill their obligations. The listing agent also does not hold rights to the contract simply by virtue of their position; their role is to represent the seller in the transaction. The court typically doesn't play a role in this scenario unless there are disputes that require legal intervention, at which point the estate would generally manage the transaction in accordance with state laws and probate proceedings.

In the case of a binding offer in a real estate transaction, if the buyer passes away, the rights to the contract are typically transferred to the buyer's estate. This occurs because the buyer's estate represents their legal interests and assets after their death, including any ongoing contracts. The estate has the authority to determine how to proceed with the transaction, which may include completing the sale, renegotiating terms, or even canceling the contract depending on the specific circumstances.

The seller does not automatically retain the rights to the contract upon the buyer's passing without the involvement of the estate, as the contract is a mutual agreement that requires both parties to fulfill their obligations. The listing agent also does not hold rights to the contract simply by virtue of their position; their role is to represent the seller in the transaction. The court typically doesn't play a role in this scenario unless there are disputes that require legal intervention, at which point the estate would generally manage the transaction in accordance with state laws and probate proceedings.