Contracts
Under Wisconsin law, a real estate contract is fully 'executory' before closing because:
AIt has been fully performed
BIt has been agreed to but the primary obligations (closing, transfer of title, payment) have not yet occurred✓ Correct
CIt cannot be enforced
DIt requires DSPS approval before execution
Explanation
An executory contract is one that has been formed (accepted) but where the primary obligations — closing, payment of the purchase price, transfer of title — remain to be performed.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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