Contracts

An offer to purchase real property becomes a binding contract when:

AThe seller signs the offer
BThe seller communicates acceptance to the buyer✓ Correct
CThe earnest money is deposited
DThe buyer's lender approves the loan

Explanation

A contract is formed when the offeror (buyer) is notified of the offeree's (seller's) acceptance. Signing alone does not create a contract — the acceptance must be communicated to the buyer.

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