Contracts
In Iowa, an offer to purchase becomes a binding contract when:
AThe buyer signs and submits the offer
BThe seller signs the offer in acceptance and the buyer receives notification of the acceptance✓ Correct
CThe earnest money deposit is received by the broker
DThe buyer and seller both sign and the broker delivers copies to each party
Explanation
A binding contract is formed when the seller signs the offer in acceptance AND the buyer receives notification of that acceptance. Mutual assent requires communication of acceptance — the contract is not formed until the buyer knows the seller has accepted.
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