ContractsHomebuying Glossary
Binding Contract
A contract that is legally enforceable and obligates both parties to follow through on its terms.
In plain English
A contract becomes binding once all required signatures, considerations, and (where applicable) attorney-review or option periods are complete — at that point, both parties are legally obligated to perform, subject to any contingencies.
Why it matters
Knowing exactly when your contract becomes binding matters, since your contingency deadlines are usually counted from that date.
Where you'll run into it
Guides and tools on TheBuyingPath that cover binding contract in context.
Related terms
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