Contracts

In South Dakota, a 'purchase agreement' (sales contract) for real estate typically becomes binding when:

AThe buyer makes the offer
BBoth parties have signed and acceptance has been communicated to the buyer✓ Correct
CThe earnest money is deposited
DThe property passes inspection

Explanation

A binding real estate contract is formed when the seller accepts the buyer's offer (or the buyer accepts the seller's counteroffer) and that acceptance is communicated to the other party. Both parties' signatures and communication of acceptance are required.

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