Contracts
What is 'mutual assent' in a Rhode Island real estate contract?
AA mutual agreement between two brokers
BThe meeting of the minds—both parties agree to the same terms at the same time✓ Correct
CThe lender's approval of the loan
DBoth parties signing the closing documents
Explanation
Mutual assent (or 'meeting of the minds') is the requirement that both parties agree to the same contractual terms. It is evidenced by offer and acceptance without conditions that change the terms.
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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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