What occurs once the buyer and seller both sign the sales contract?

Once both the buyer and seller sign the sales contract, the contract becomes legally binding. This means that both parties are obligated to adhere to the terms and conditions outlined in the agreement. Upon execution of the contract by both parties, it signifies mutual acceptance of the offer, and both parties must now fulfill their contractual obligations unless a legally recognized reason exists to terminate the agreement.

While there are additional steps that might follow, such as entering the property information into the MLS or requiring agent signatures for different transactions, these actions do not impact the legal binding status of the contract itself. The contract’s binding nature is established at the point of signature by both parties, ensuring that they have formally agreed to the terms of the sale.