When does binding acceptance occur in a real estate transaction?

Binding acceptance in a real estate transaction occurs when all parties have signed an identical copy of the offer and delivered it. This is the point at which a legally enforceable contract is formed. For a contract to be binding, there must be a clear agreement between both parties, which is established through the mutual acceptance of the terms outlined in the offer.

In real estate, this means that both the buyer and seller must have agreed to the same terms, and typically, a signed document serves as evidence of this mutual acceptance. Once this step is completed, neither party can unilaterally alter the agreement without the consent of the other party.

Other options, such as an initial offer or a verbal agreement, do not create a binding contract because they lack the necessary signatures that confirm acceptance of the terms. A counteroffer does not represent acceptance of the original offer; rather, it modifies the terms and requires new consideration by the original offeror.