Contracts

In New York, a 'binder' or 'memorandum of sale' signed before the formal contract is typically:

AA fully enforceable binding contract on both parties
BA non-binding expression of intent subject to the execution of a formal contract✓ Correct
CRequired by law for all residential sales
DOnly valid if notarized

Explanation

In New York practice, a binder or memorandum of sale is generally considered a non-binding expression of intent. The parties are typically not bound until the formal written contract is signed, especially given New York's attorney review practices.

Related New York Contracts Questions

Practice More New York Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New York Quiz →