Which of the following statements is TRUE regarding the situation where prospective buyers made an offer on a property but found another house they liked better?

In the scenario where prospective buyers make an offer on a property but later find another house they prefer, the situation is that both contracts can be considered valid until one of them is formally terminated. When the buyers made an offer on the first property, they entered into a binding contract that can only be overturned by mutual agreement or through the fulfillment of specific conditions outlined in the contract (like being contingent upon financing or inspections).

If they then make an offer on the second property, that offer is independent of the first contract. As such, both offers can exist simultaneously unless the buyers withdraw the first offer or one of the sellers decides to accept it. Thus, both contracts remain valid, and it is up to the buyers to decide which offer they want to pursue or if they wish to proceed with both offers until they either get accepted or one is canceled. This understanding highlights the significance of monitoring offers and managing decisions in real estate transactions.