I don't know what state you live in, but in CA, it's not a contract until all contingencies are signed off. You ask any lawyer if it's a contract once both parties have agreed to it.They will *all* tell you that it is indeed a contract.There may be numerous ways for the contract to end - but that doesn't mean it isn't a contract.Perhaps a lender told you it's "not a contract" unless the contingencies are signed off, when what they really should have said is "It's not a contract that we can lend on".Perhaps we have to start with "what is a contract" - and we'll see that the accepted offer (or accepted counteroffer) is indeed a legal contract.A contract is:1> An offer ("I'll buy the house for $100K - here's my signed offer to purchase it.")2> An acceptance ("OK - here's my signature agreeing to it.")3> Consideration (The earnest money deposit and the promise that the seller will sell the home to the buyer)Once those 3 elements were met, it's a contract.Once the offer is accepted, there are multiple ways that contract can end - including1> exercising of a contingency clause in the contract2> by mutual agreement of both parties (unlikely here IMO - unless the builder/seller has no inventory left and has another interested buyer waiting that will pay more)3> with a completed sale
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. M