Contracts
Under Massachusetts law, an agent who signs a purchase offer as 'agent for' a disclosed principal creates contractual obligations for:
AThe agent personally
BThe principal (the buyer or seller), not the agent personally✓ Correct
CBoth the agent and the principal jointly
DNeither the agent nor principal until the deed is delivered
Explanation
When an agent signs a contract on behalf of a disclosed principal, the contract creates obligations for the principal, not the agent. The agent is merely the vehicle through which the principal acts.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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