Contracts
A purchase and sale agreement in Maine is considered legally binding when:
AThe buyer signs the offer
BBoth parties have signed and acceptance has been communicated✓ Correct
CThe earnest money deposit is delivered
DThe title search is completed
Explanation
A contract is formed in Maine when there is offer, acceptance, consideration, and communication of acceptance to the offeror. Both parties must sign and acceptance must be communicated for the agreement to be binding.
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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
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