Omaha Real Estate

Contracts that Bind and Those that Don't

Contracts that Bind and Those that Don't

Everybody has heard the term "binding contract" but what does that mean? At what point is a contract binding?

 

A binding contract is one that obligates by both parties to its terms. In real estate a binding purchase agreement requires the seller to sell and the buyer to buy the specified property notwithstanding any contingencies included.

 

A contract becomes binding once it is accepted by both parties and the other party is notified of the contract being accepted. For example if a seller accepts a purchase agreement by signing it, it is not binding until the buyer has been informed of the seller's acceptance. Notification of acceptance can be done either by returning a copy of the contract to the seller's listing agent or by notifying the listing agent that the offer was accepted.

 

There are a couple of situations in which a buyer or seller may believe they have a binding contract when they do not. The first is verbal contracts. Verbal contracts are not binding even if all of the terms are agreed to. Until the terms are put in writing and signed by both parties a verbal contract for real estate cannot be enforced. In Omaha it is common to negotiate a contract verbally and then once the terms are agreed upon to put it into writing. However until signed by both parties, either one can change their mind. If a seller were to receive a second offer, even after verbally accepting one, the seller is still free to accept the new offer.

 

The second area of possible confusion is counter offers. Any change to an offer needs to be accepted by the other party. Even the smallest of changes constitutes a counter offer and requires the other party's acceptance of the change before the contract is binding.

 

When selling real estate be sure that the purchase agreement is signed, without changes, and both parties are aware of the acceptance of the contract. 

Contracts that Bind and Those that Don't
share
Contracts that Bind and Those that Don't Everybody has heard the term "binding contract" but what does that mean? At what point is a contract binding? A binding contract is one that obligates by both parties to its terms. In real estate a… more
NEW LISTING! Papillion Home for Sale in Park Hills III
share
BUY THIS HOME & HAVE NO PAYMENTS FOR UP TO 6 MONTHS, CALL 402-676-6700. Magnificent 3 bedroom, 3 bath home located in desirable Park Hills III is move-in ready with an abundance of updates including all new carpet, paint, light fixtures… more
NEW LISTING! Omaha Home for Sale in Stonecrest
share
BUY THIS HOME & HAVE NO PAYMENTS FOR UP TO 6 MONTHS, CALL 402-676-6700. Beautiful home nestled in Stonecrest, just 1 block from park. Covered front porch & professional landscaping invites guests into the main floor living… more
NEW LISTING! Bellevue Home for Sale in Birchcrest
share
BUY THIS HOME & WE WILL BUY YOUR HOME, CALL 402-943-9494. Do not miss out on this remodeled Bellevue gem. This thoroughly updated home includes four bedrooms plus a main floor office. Everything inside this home will delight you… more
NEW LISTING! Home for Sale in Hanscom Place
share
Alluring 2-story has an inviting covered front porch which opens to living room with fireplace, built in cabinetry and lots of windows for natural lighting. Formal dining with pass through service bar are a few more of the main floor features… more
NEW LISTING! Blair Home for Sale in Lakeland Estates
share
Magnificent 1 1/2 Story in Lakeland Estates sits on over an acre of land and atop a hill with fantastic views and peaceful horizon. Covered front porch invites guests into this captivating home which offers over 3, 000 finished square feet of… more
What's the Value of My Home?
share
What's the Value of My Home? A common question Omaha homeowners have is, "What's the value of my home? " The answer is, it depends on what the purpose of the valuation is. A home has different values based on what the use of the value is. Theses… more
NEW LISTING! Omaha Home for Sale in Westin Hills West
share
Gorgeous ranch in Westin Hills West is move-in ready and impressive from the start with professional landscaping and mature trees. Covered entry invites guests into this captivating home. Living room with fireplace opens to an elegant kitchen… more
NEW LISTING! Omaha Home for Sale in Hanscom Place
share
Alluring 2 story with a large inviting covered front porch opens to a gorgeous living room with fireplace and a plethora of updates. Kitchen has new ceramic tile flooring, stainless steel appliances, countertops and glass tile backsplash… more
NEW LISTING! Omaha Home for Sale in Center Park
share
Beautiful 3 bedroom, 3 bathroom home, in West Omaha’s desirable Center Park subdivision with private backyard, fully fenced and no neighbors to rear. Includes a plethora of updates like new paint (inside and out), flooring, fixtures and… more