Contracts
In North Dakota, a 'bilateral contract' in real estate means:
ABoth parties are from different states
BBoth parties make promises to each other—such as the buyer's promise to pay and the seller's promise to convey title✓ Correct
COnly the buyer has contractual obligations
DThe contract involves two separate properties
Explanation
A bilateral contract involves mutual promises from both parties. In a real estate purchase contract, the buyer promises to pay the purchase price and the seller promises to convey title.
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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.
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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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