A backup offer is made in the acknowledgement of any current offer, and makes sure that there will be a contract made with the seller, even if the first one does not go through. It is a contract that is legally binding and if it is chosen by the seller, it will put the buyer next in line for buying the home in case the first buyer does not go through with the deal.
A backup offer is a contract/agreement that is legally binding and recognizes the presence of existing offers. If the first offer does not proceed, then the holder of the backup offer will be in a position to purchase the property in question.
The backup offer is important while buying or selling any property, since there will be an automatic contract with the property seller in case the first property buyer leaves the deal or walks out from it. The house will not be listed in the market once again. The second prospective buyer will still get an opportunity to purchase property, even when another buyer is already in the first position. This will happen if he/she backs out. Sellers often provide such offers in order to guarantee home sales in case the first buyer walks out from the deal.
