A bumpable buyer is a prospective purchaser whose offer on a property is accepted subject to the removal of certain contingencies, most commonly a home-sale contingency. Under a bump clause, the seller retains the right to continue marketing the property and accepting backup offers. If another qualified buyer submits a more favorable offer, the original buyer may be required to remove the contingency within a specified period or risk losing the opportunity to purchase the property.
The concept of a bumpable buyer is most frequently encountered in competitive real estate markets where sellers wish to avoid delays or uncertainty associated with contingent offers. The arrangement allows the seller to maintain flexibility while giving the initial buyer an opportunity to proceed with the transaction. If the buyer cannot satisfy the terms of the bump clause within the allotted timeframe, the seller may terminate the agreement and move forward with the competing offer.
