Contracts
In North Dakota, an offer becomes a binding contract when:
AThe buyer signs the offer
BThe seller receives the offer
CThe seller accepts and communicates acceptance to the buyer✓ Correct
DThe earnest money is deposited
Explanation
An offer becomes a binding contract (mutual acceptance) when the seller accepts the offer and that acceptance is communicated to the buyer within the offer's time limit.
People Also Study
Related North Dakota Questions
- A North Dakota buyer makes a written offer and the seller verbally accepts. Is there a binding contract?Contracts
- A North Dakota real estate contract where the seller makes an offer and the buyer accepts it exactly as written creates which type of contract?Contracts
- A North Dakota seller accepts an offer on Monday. Before the buyer receives notice of acceptance on Tuesday, the seller receives a better offer. The seller can:Contracts
- A North Dakota landlord who fails to return a security deposit within the required time may be liable for:Property Management
- A North Dakota purchase contract provides that 'time is of the essence.' This means:Contracts
- A North Dakota seller accepts an offer of $275,000. They pay off a $190,000 mortgage and 6% commission. What are the net proceeds before other closing costs?Real Estate Math
- A North Dakota buyer's agent fails to submit an offer within the agreed timeframe, causing the seller to accept another offer. The buyer's agent may have breached the duty of:Agency
- A North Dakota seller accepts a purchase offer but then receives a better offer before closing. The seller may NOT simply accept the second offer because:Escrow & Title
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.
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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
Study This Topic
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →