What is necessary for a real estate contract to be legally binding?

A legally binding real estate contract requires mutual consent, which means that all parties involved must agree to the terms of the contract. This agreement is foundational in contract law, indicating that both the buyer and seller have willingly entered into the contract with a clear understanding of the terms and conditions. Mutual consent is often formalized through an offer and acceptance process, where one party makes an offer and the other party accepts that offer without any modifications or conditions.

While a written agreement is typically necessary for most real estate contracts to be enforceable in many jurisdictions, it is the mutual consent between parties that is the essential component that allows a contract to exist in the first place. Without this consent, there cannot be a legally binding agreement, regardless of whether the other elements, such as a written contract or earnest money payment, are satisfied.