Contracts
In Vermont, the 'effective date' of a real estate contract is typically:
AThe date the listing was entered in the MLS
BThe date the last required signature is affixed and the acceptance is communicated to the offeror✓ Correct
CThe date the buyer's earnest money is deposited
DThe recording date of the deed
Explanation
A contract becomes effective when the last required party signs and the acceptance is communicated to the offeror. In Vermont real estate practice, the 'effective date' or 'binding date' is used to calculate contingency deadlines and other time-sensitive contract provisions.
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Key Terms to Know
Earnest Money
A 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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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