Contracts
In Minnesota, what is the difference between an 'offer' and a 'purchase agreement'?
AThey are the same document
BThe offer becomes a binding purchase agreement only when accepted by the seller and communicated to the buyer✓ Correct
CAn offer is only valid for 48 hours; a purchase agreement lasts until closing
DA purchase agreement requires court approval; an offer does not
Explanation
A buyer's offer is an unaccepted proposal. When the seller accepts the offer without changes and that acceptance is communicated to the buyer within the offer's deadline, the offer becomes a binding purchase agreement. Until acceptance is communicated, the offeror can withdraw their offer.
Related Minnesota Contracts Questions
- A Minnesota purchase agreement specifies that the seller's personal property (washer, dryer, refrigerator) is included in the sale. At closing, the seller has removed the refrigerator. The buyer:
- In Minnesota, a purchase agreement becomes void automatically in which situation?
- A Minnesota seller accepts an offer and the parties have a binding purchase agreement. The seller then receives a higher offer. The seller may NOT accept the second offer because:
- Under Minnesota contract law, 'consideration' in a real estate purchase agreement is provided by:
- In Minnesota, which of the following provisions in a purchase agreement specifically addresses who is responsible if the property is damaged or destroyed between signing and closing?
- A Minnesota lease agreement contains an option to purchase. The tenant exercises the option. This creates:
- In Minnesota, a real estate purchase agreement that contains a provision for arbitration of disputes means:
- A Minnesota homebuyer uses the Minnesota Association of Realtors purchase agreement form. This form is considered a:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →