In real estate we have a term called short sales. Usually this type of sale is a home that is priced not high enough to clear all debt, liens and costs of the sale and also would require approval by a third party or other parties not in title. Many times approval by the lender is required. It seems most times that the lender will wait till the very last minute to give approval because they naturally are waiting to get the very best possible price.

Some of the risks;

Multiple offers may result in multiple escrows and earnest money deposits and so then multiple terminations must be drwn up to return the earnest money to the unsuccessful deals.

The third party can ask that the property continue being marketed, which can lead to many more offers.

The deal is not final until the third party has agreed regardlesss of whether the buyer and seller have agreed.

The third party might not agree until the last minute.

The third party may not like the contract and require changes.

The third party may not accept the deal and therefore making the deal fail.

The buyer may lose money if they go ahead with their due diligence by having inspections, etc. done before third party approval and then having the sale fail.

Short sales can be complicated and have a more than average rate of failure.