Contracts
In Pennsylvania, a real estate sales contract becomes legally binding when:
AThe buyer signs the offer form
BThe seller verbally accepts the offer over the phone
CThe fully executed contract is communicated and delivered back to the buyer✓ Correct
DThe buyer delivers the earnest money deposit to the broker
Explanation
In Pennsylvania, a real estate contract becomes binding upon full execution — when all parties have signed the agreement AND acceptance is communicated or delivered back to the offeror. Verbal acceptance is insufficient under the Statute of Frauds.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
State-Specific Concepts
Escrow Disputes
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