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Alex and Michael Helbig signed a contract to purchase their first home from sellers Joe and Bonnie Watson. Once all parties have attended closing and the purchase has been funded, the Helbigs are given the keys to their house. What type of contract do they have at this point?

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Answer: Executed

Explanation: Contracts in which all necessary procedure, documentation or paper works have been put in place are called executed contracts. In other words, finalized contracts whereby the seller's demands have been met and similarly, the buyer's wish has been granted. And as such making the agreement between both seller and buyer effective are called executed contracts. In the scenario above, documentation processes has been completed, purchase fee has been paid and the keys of the property handed to the buyer. At this point negotiation and purchase has come to a closure, This is makes it an excited contract.

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