Contracts
In a Texas real estate transaction, the 'effective date' of a contract is:
AThe date the contract is first signed by either party
BThe date when the last party signs and all parties have been notified of acceptance, creating a binding agreement✓ Correct
CThe date the earnest money is deposited
DThe first day of the option period
Explanation
The effective date of a TREC contract is typically the date when acceptance is communicated—when the last party to sign delivers notice of acceptance to the other party (or their agent), creating a binding contract. This is important because many time periods in the contract (option period, financing period, survey period) begin on the effective date.
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