What does 'Ratified Contract' Mean?
We have had our house listed for sale and last week we got a contract. We are waiting to hear back about the Home Inspection right now. Every time I speak with my Realtor® she calls our contract a 'Ratified Contract.' What does this mean? What is the difference between a 'Contract' and a 'Ratified Contract?'
Confused in Northern Virginia
Like every other field, Real Estate is a discipline that has its own language. All Realtors® know the lingo, but we forget that not every one understands our 'Realtor® Speak.'
What you received last week was an Offer. After discussing the Offer with your Realtor, you most likely Countered (went back to them with YOUR Offer). This cycle can go back and forth until the two parties reach agreement. This is how your sales contract ends up with scratched out terms and initials. Each time a party Counters, they are essentially making a brand new Offer. Once the parties have agreed on the terms of the contract, and all changes are initialed and all blanks are initialed and/or signed, you have what is called Ratified Contract--a contract to purchase your home at terms agreeable to all parties.
A Ratified Contract will likely still have Contingencies...but that is a post that I covered yesterday, What is the big rush to clear the contingencies?
I hope this helps!
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