Contracts

A NH contract states that the buyer must obtain a home inspection within 10 days of the effective date. 'Effective date' is typically defined as:

AThe date the buyer signed the offer
BThe date the seller's signed acceptance is communicated to the buyer✓ Correct
CThe date the earnest money deposit clears the bank
DThe closing date

Explanation

The effective date is generally the date the contract becomes binding—when the seller's acceptance is communicated to the buyer. All time periods in the contract run from this date unless otherwise specified. Licensees should ensure the effective date is clearly noted on the contract.

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