Contracts
What is the 'mailbox rule' and how does it apply to Illinois real estate offer acceptance?
AA rule requiring all offers to be submitted via mail to be valid
BThe common law rule that acceptance of an offer is effective when deposited in the mail, not when received; modified by modern electronic communication practices✓ Correct
CA rule requiring offer responses within 24 hours of receipt
DAn Illinois statute requiring delivery of all contracts by certified mail
Explanation
The mailbox rule states that acceptance is effective upon dispatch (when put in the mail) rather than upon receipt. In modern Illinois real estate practice, most communications occur electronically, and contract language typically specifies when acceptance occurs (e.
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Math Concepts
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