New Jersey Real Estate Practice Exam Free Practice Question
A buyer has made an offer on a listed property and the seller has signed it, indicating acceptance of the offer. What must still be done before this offer becomes a binding contract of sale?
Correct Answer: C
Rationale: For an offer to become a binding contract, the buyer must be notified of the seller's acceptance. This notification is essential as it ensures that both parties are aware of and agree to the terms of the contract.
Option A, recording the accepted offer, is not necessary for the contract's binding nature; recording is typically done for public notice but does not affect the agreement itself.
Option B, depositing earnest money, is important for demonstrating the buyer's commitment, but it does not create a binding contract on its own.
Option D is misleading; while acceptance is a crucial step, without notifying the buyer, the contract is not fully enforceable.
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