Contracts
An offer to purchase that includes a deadline of 'accepted by 5 PM today' and is not accepted by that time:
ARemains open until the other party responds
BLapses (expires) and is no longer valid✓ Correct
CAutomatically becomes a binding contract
DMust be extended by the seller
Explanation
An offer that specifies a deadline lapses if not accepted by that deadline. The offeror is no longer bound after the stated expiration time.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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