Contracts
When an Oregon seller accepts a buyer's offer, the purchase agreement becomes:
AAn executory contract — the parties have obligations that remain to be performed✓ Correct
BAn executed contract — fully completed by both parties
CA unilateral contract — only one party is obligated
DA quasi-contract imposed by the court
Explanation
An accepted purchase agreement is an executory contract — both parties have agreed to the terms but obligations (paying the purchase price, delivering title) remain to be performed in the future, at closing. The contract is fully executed (completed) only when both parties have performed all obligations at closing.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA 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.
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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