Contracts
A real estate contract that is 'subject to court approval' is one that:
AIs fully binding on all parties from the date of signing
BRequires approval by a judge or administrator before becoming binding, such as in a bankruptcy or estate sale✓ Correct
CIs conditional on the property passing a court-ordered inspection
DRequires IDFPR approval before the parties are bound
Explanation
Certain real estate contracts require court approval before they are binding, particularly in bankruptcy cases (where the bankruptcy court must approve the sale) and estate/probate sales (where the probate court must approve the sale of estate property). In these cases, the contract is not binding until the court approves.
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Key Terms to Know
Contingency
A 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.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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