Contracts
In New Hampshire, an offer to purchase becomes a binding contract when:
AThe buyer signs the offer✓ Correct
BThe seller verbally agrees to the terms
CThe seller signs the offer and acceptance is communicated to the buyer
DThe earnest money is deposited in escrow
Explanation
A binding contract requires both offer and acceptance. In New Hampshire, the contract is formed when the seller signs (or signs a counteroffer that is then accepted) and notice of acceptance is communicated to the offeror.
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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.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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