When does a real estate sales contract become valid or in effect?

A real estate sales contract becomes valid or in effect when it has been signed by both the buyer and the seller. This mutual agreement is essential because a contract requires an offer and acceptance between the parties involved, which is reflected in their signatures. Each party signing the contract indicates that they have reviewed the terms and conditions, and they agree to abide by them.

While other options mention important elements often related to contract negotiations or execution, none establish the validity of the contract as definitively as the signatures of both parties. For instance, a third-party counter-signature is not necessary for the validity of a standard real estate sales contract. Similarly, submitting a deposit is a common practice that shows intent to purchase but does not in itself create a binding agreement. Furthermore, oral agreements can lead to misunderstandings and are generally not recognized as legally binding unless they are subsequently documented and signed. Therefore, the act of having both the buyer and seller sign the contract is the crucial step that solidifies the contract's validity and enforceability.