Contracts
A real estate purchase contract becomes binding when:
AThe buyer signs the contract
BBoth parties have signed and the acceptance is communicated to the offeror✓ Correct
CThe earnest money is deposited
DThe title search is ordered
Explanation
A contract becomes binding when there is a meeting of the minds — both parties have signed and the acceptance has been communicated back to the offeror. Simply signing without communicating acceptance does not create a binding contract.
Related Alabama Contracts Questions
- Under Alabama law, an offer to purchase real estate can be withdrawn:
- A contract that is 'void' is:
- An 'escalation clause' in a buyer's offer:
- In a real estate contract, 'consideration' most commonly takes the form of:
- The seller's right to continue marketing the property while a purchase offer is pending, with an obligation to notify the buyer if a backup offer is accepted, is called a(n):
- Which of the following is NOT required for a valid real estate contract in Alabama?
- In Alabama, the Statute of Frauds requires that real estate contracts be:
- If a seller accepts a buyer's offer by email without any changes, which of the following best describes the contract status?
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