Ace the Texas Real Estate State Exam 2025 – Unlock Your Realty Dreams!

The term that refers to an agreement giving a seller the right to accept backup offers is a contingency clause. This clause is included in a contract to stipulate certain conditions that must be met for the underlying contract to be binding. Specifically, a contingency clause can allow the seller to continue marketing the property and accepting backup offers, which provides a safety net in case the original offer falls through due to unmet conditions.

In real estate transactions, contingency clauses play a crucial role, as they determine what happens if specific conditions arise. For example, if the primary buyer's financing falls through, the seller can move on to a backup offer. This ensures that the seller is not left without options and can quickly proceed with another potential buyer.

By contrast, an exclusive agency agreement is more related to the relationships and rights between the seller and a real estate agent, while an option agreement typically grants a buyer the right to purchase, not necessarily providing a framework for accepting other offers. A lease purchase agreement combines elements of a lease and a purchase and does not inherently cover the acceptance of backup offers. Thus, the contingency clause is the correct terminology for this situation.