In real estate, we often use the term "executed" to refer to a purchase and sales agreement that has been signed and received by both real estate buyers and sellers.
What this means is that the buyer has submitted an offer, has included an offer of consideration (a deposit amount), and the seller has accepted the offer without any changes. Once the seller has signed the offer and it's sent back to the buyer, then we say we have an executed contract.
We consider an offer to be executed even if the seller has not actually received the deposit check - in practice, many agents fax a copy of the check to the seller's agent and then deliver the real check after buyers and sellers have agreed. Even if that check takes a few days to get to the sellers, the buyers still have what we call an executed contract. Waiting for the check becomes dicey in a seller's market because other, higher, offers may come in while the seller is waiting for their deposit check.
Technically...
I took a look at my Modern Real Estate textbook and according to it, a contract is not fully "executed" until all parties have fulfilled their promises - so a purchase and sales agreement is only technically executed at the closing. What we call an executed contract is really an executory contract (where parties still have to do something). But, in practice, we call a purchase and sales agreement that has been signed by both sides an executed contract.
To read other great posts, visit my other blog, CTRealEstateUnleashed.com
Get Unleashed - By Feed
;)
;)
