suboffer

A suboffer is a secondary or subordinate offer that is contingent upon the acceptance of a primary offer. This concept is most commonly encountered in real estate transactions, but can also appear in other contractual contexts. In a real estate scenario, a buyer might make an offer on a property. If that offer is accepted, but the buyer has a condition to fulfill, such as selling their current home, they might also present a suboffer to the seller. This suboffer essentially means, "If I successfully sell my current home, I will proceed with purchasing your property."

The seller in this situation would then be aware of a potential secondary transaction. They might accept the primary offer with the suboffer attached, meaning they are willing to sell to the first buyer, but only if that buyer meets their stated contingency. Alternatively, the seller could choose to reject the suboffer or counter it. This allows the seller to keep their property on the market while the first buyer works to fulfill their conditions. If the first buyer's suboffer is not fulfilled within the agreed-upon timeframe, the seller is then free to accept another offer without penalty. The terms and conditions of a suboffer are as legally binding as any other part of the contract once accepted and all contingencies are met.