Who signs a real estate purchase agreement to make it legally binding?

• A. The buyer only
• B. The seller only
• C. Both the buyer and the seller
• D. The broker

Answer: (C)

A real estate purchase agreement becomes legally binding when both parties sign it because it’s a mutual, bilateral contract. Each party makes a promise: the buyer commits to paying the agreed price and adhering to the contract terms, and the seller commits to transferring ownership on those terms. Signatures from both sides provide the necessary mutual assent and create enforceable obligations for everyone involved.

The broker’s role is to facilitate and prepare the contract, but a broker’s signature isn’t what binds the deal unless the broker is also a party to the contract or there’s a separate agreement with the broker. If only the buyer signs, there’s no obligation on the seller to sell. If only the seller signs, there’s no obligation on the buyer to buy. Only with signatures from both the buyer and the seller is the agreement legally binding.