PSI Virginia Real Estate Practice Exam

What is typically required for a real estate contract to become binding?

1. Only verbal agreements are sufficient

2. All parties must sign the document

3. It must be notarized

4. It should be emailed to all parties

The correct answer is: All parties must sign the document

For a real estate contract to become binding, it must be signed by all parties involved in the transaction. This requirement ensures that there is mutual assent, or agreement, between the parties. The signatures represent each party's acceptance of the terms and conditions outlined in the contract, indicating their intent to be legally bound by the agreement. While there are various forms of agreements in real estate, such as verbal ones or even informal communications, these typically do not provide the legal enforceability that a signed written contract does. Notarization and the method of delivery (like emailing) may add layers of verification or facilitate the process, but they are not prerequisites for the enforceability of a contract. Therefore, the signature of all parties is essential to establish a legally binding real estate contract.