Contracts
The Indiana Purchase Agreement is a legally binding contract once:
AThe buyer signs it
BThe seller signs it
CBoth parties have signed and acceptance has been communicated to the offeror✓ Correct
DThe earnest money is deposited
Explanation
A real estate contract is binding when there is a meeting of the minds — both parties have signed and acceptance has been communicated back to the offeror. Earnest money deposit is not required for contract formation.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Math Concepts
State-Specific Concepts
Escrow Disputes
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