Contracts

In a Texas transaction, when the seller accepts the buyer's offer, acceptance must be communicated to the buyer. Under contract law, the offer is accepted when:

AThe seller signs the offer
BThe seller communicates acceptance to the buyer (or buyer's agent) before any revocation✓ Correct
CTREC processes the contract
DThe earnest money is deposited

Explanation

Under contract law, acceptance must be communicated to be effective. A signed offer that is not yet communicated to the offeror (buyer) has not formed a binding contract. In Texas real estate, acceptance occurs when the signed contract is delivered to the buyer or the buyer's agent, creating the contract's effective date.

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