Contracts
A Texas real estate sales contract becomes binding when:
AThe seller signs the offer
BThe buyer delivers earnest money to escrow
CBoth parties have signed and the signing party has been notified of acceptance✓ Correct
DThe title company receives the executed contract
Explanation
A contract becomes binding (executed) in Texas when all parties have signed and the party making the offer has received notice of the other party's acceptance. Notification of acceptance completes the contract.
Related Texas Contracts Questions
- If a Texas residential contract has no closing date specified and both parties cannot agree on one, what is the likely result?
- In Texas, when a buyer uses the TREC Financing Addendum and fails to obtain loan approval by the deadline despite good faith efforts, the buyer may:
- The TREC contract's 'paragraph 4' addresses the license holder disclosure required when a real estate agent has a personal interest in the property. This disclosure:
- In Texas, a 'contingency' in a real estate contract is a condition that must be met for the contract to remain binding. If a contingency is NOT met, the general consequence is:
- When a Texas buyer enters into an option contract for a property, the 'consideration' for the option itself is:
- The TREC One to Four Family Residential Contract is:
- In a Texas real estate transaction, when a buyer defaults and the seller elects to terminate the contract and retain the earnest money, this is generally treated as:
- In a Texas real estate transaction, 'specific performance' as a remedy means:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →