Recently, we’ve been involved in a few transactions where the buyer or the seller thought they had an effective contract before they actually did. If you are not sure when you actually “have a deal” and are wondering “When is the contract on my new house effective?” Keep Reading…
In Texas, for a real estate contract to be effective it has to meet three requirements:
- The buyer and the seller have agreed to all of the terms of the contract in writing;
- The contract is signed by all parties; and
- The last party to accept the terms has communicated that acceptance to the other party or his agent. Once acceptance has been communicated, you have an effective contract. This step is called executing the contract and the date the contract was executed is included on page 8 of the ONE TO FOUR FAMILY RESIDENTIAL CONTRACT promulgated by the Texas Real Estate Commission. (TREC).
Either agent, representing their broker, can fill in the executed date but it is a good business practice for the agents to confirm the executed date when communicating final acceptance.
Amie and I were in a Graduate Realtor Institute – Real Estate Finance class yesterday and discovered that it is common for contracts to go to the lender and the title company without and the Executed Date being filled in on the contract. Not having the date written on the contract DOES NOT mean the contract is not valid. It just makes it difficult to determine the deadlines for other actions where “Time Is Of The Essence.”
There are a lot of details that your Realtor takes care of for you that you never know about. Be picky about who represents you in the largest single purchase most people ever make. Choosing the right Realtor can save you thousands of dollars in the long run. If you are thinking about buying a home or selling your home we would love to walk with you through all of the details involved in the process. Contact us, because…
In A Market This Hot, You Really Need A Firefighter By Your Side!!!
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FireBoss Realty would love to help you if you are looking for Homes for sale in Wylie, Homes for sale in Sachse, Homes for sale in Murphy, Homes for sale in Lucas, Homes for sale in Allen, Homes for sale in McKinney, Homes for sale in Plano or Homes for sale in Collin County.
