What initiates the process of forming a legally binding real estate contract?

The formation of a legally binding real estate contract requires mutual acceptance and consideration. Mutual acceptance occurs when both the buyer and the seller agree to the terms of the contract, demonstrating their intent to be bound by those terms. This agreement must be clear and specific regarding the details of the transaction, such as the price, property description, and any other pertinent terms.

Consideration refers to something of value that is exchanged between the parties involved. In a real estate transaction, this is typically the money paid by the buyer and the property that the seller agrees to transfer. Without consideration and mutual acceptance, an agreement cannot be legally enforced in court, as both parties must have a stake in the transaction.

While the buyer's intent to purchase and the seller's verbal agreement might signify interest in proceeding with a transaction, they do not constitute a legally binding contract on their own without mutual acceptance of the key terms and consideration. Similarly, completion of a title search is an important step in the transaction process but is not a prerequisite for the formation of the contract itself.