Which statement about the transition from offer to accepted offer is correct?

• A. An accepted offer becomes a binding contract subject to contingencies.
• B. An accepted offer immediately transfers ownership.
• C. An accepted offer is not binding until closing.
• D. An accepted offer eliminates the need for disclosures.

Answer: (A)

When an offer is accepted, a contract is formed between buyer and seller. This contract is binding, but it usually includes contingencies that must be satisfied for the deal to go forward—such as financing approval, a satisfactory home inspection, appraisal, or title clearance. Ownership does not transfer until closing and recording of the deed. So the accepted offer creates a binding contract that is subject to these contingencies, rather than transferring ownership immediately or waiting until closing to become binding. Disclosures remain required as applicable, and the contract doesn’t eliminate those duties.