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Alberta Real Estate Licensing Exam Practice · Question

In a residential real estate transaction, when does the 'offer' become legally binding?

An offer becomes a binding contract upon acceptance by the offeree and effective communication of that acceptance to the offeror.

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Question: In a residential real estate transaction, when does the 'offer' become legally binding?

Answer options: ✅ When it is accepted by the seller and acceptance is communicated to the buyer.

  • When the buyer signs the initial offer document.
  • When the real estate professional presents the offer to the seller.
  • When the buyer obtains pre-approval for a mortgage.

Correct answer: When it is accepted by the seller and acceptance is communicated to the buyer.

Explanation: An offer becomes a binding contract upon acceptance by the offeree and effective communication of that acceptance to the offeror.

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