Contracts
A purchase agreement in Iowa becomes binding when:
AThe buyer signs the offer
BThe seller accepts the offer and acceptance is communicated to the buyer✓ Correct
CEarnest money is deposited
DThe listing broker countersigns the agreement
Explanation
A binding contract requires a valid offer, unqualified acceptance, and communication of that acceptance to the offeror. In Iowa real estate, the purchase agreement is binding when the seller's acceptance of the buyer's offer is communicated back to the buyer.
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