Under Iowa law and standard Iowa purchase agreement practice, which of the following is NOT typically considered an essential element that must be present for a residential purchase agreement to be enforceable?
Correct Answer
D) The signature of the buyer's mortgage lender approving the financing
A lender's signature is not an essential element of a purchase agreement. The purchase agreement is a contract between the buyer and seller. Financing arrangements are handled separately through loan applications and commitments. The lender is not a party to the purchase agreement and need not sign it for the contract to be enforceable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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