When is a buyer legally bound to purchase a property?

A buyer is legally bound to purchase a property after all contingencies are removed. Contingencies are specific conditions or provisions in a purchase agreement that must be met for the sale to proceed. These can include financing approvals, satisfactory home inspections, and the sale of the buyer's current home, among others. Once these contingencies are satisfied or waived, the buyer has a firm legal obligation to go through with the purchase. This mechanism protects both the buyer and the seller by allowing time for necessary evaluations and conditions to be met before finalizing the agreement.

The other situations mentioned, such as verbal agreements, initial offers, and property viewings, do not create binding obligations in the same way. A verbal agreement lacks enforceability due to the need for a written contract in real estate transactions. Making an initial offer serves as the beginning of negotiations but does not constitute a binding contract until terms are finalized and contingencies are addressed. Similarly, merely viewing the property does not carry any legal commitment to purchase. Thus, the removal of contingencies is the key moment that solidifies the buyer's obligation.