Question

In a real estate transaction, Maldonado Gastelum has agreed to purchase Candice Dubois's house for $275,000. They have a signed written contract and the escrow is established. Which of the following statements is correct?

a. The purchase is not legally binding until the house is physically transferred.
b. The sale is finalized once the agreement is signed, regardless of escrow.
c. The sale is complete only after the house is inspected by Maldonado Gastelum.
d. The sale is legally binding upon signing the written contract and establishing escrow.

Answer 1

The sale is legally binding upon signing the written contract and establishing escrow.

Step-by-step explanation:

The correct statement is d. The sale is legally binding upon signing the written contract and establishing escrow. When Maldonado Gastelum and Candice Dubois signed the written contract and established escrow, they entered into a legally binding agreement. Escrow is a process in which a neutral third party holds the funds and documents until specific conditions are met and the transaction is finalized. The physical transfer of the house and the inspection by Maldonado Gastelum are important steps in the process, but they do not determine the legality of the sale.