Contracts, Contract Law and Required Contract Forms
Core concepts
A valid real estate contract needs competent parties, mutual assent, consideration, lawful purpose, and a description sufficient to identify the property. The statute of frauds requires covered real estate agreements to be in writing and signed by the party to be charged. An offer creates power of acceptance; a counteroffer terminates the original offer. Acceptance must be unequivocal and communicated. Contingencies (financing, inspection, appraisal, sale of another home) must be clear about deadlines and consequences.
Oklahoma licensees commonly use OREC-promulgated forms and the Residential Property Condition Disclosure form. Contract questions test whether the parties used the required form, whether all addenda were incorporated, and whether deadlines were calculated correctly. Electronic signatures are generally acceptable when the parties agree.
Traps
Counteroffers are a favorite trap: once the buyer counters, the seller cannot later "accept" the original offer. Another trap is treating earnest money as optional; the contract should state the amount, holder, and disbursement rules. Watch for "time is of the essence" clauses and for contingencies that lack a deadline. Oral modifications to a written contract may be unenforceable under the statute of frauds. Do not confuse a CMA or letter of intent with a binding contract.
Worked example
Seller lists at $300,000. Buyer offers $290,000 with a 10-day inspection contingency. Seller responds in writing at $298,000. That is a counteroffer, so the buyer's original $290,000 offer is dead. If the buyer accepts the $298,000 counteroffer and communicates acceptance before revocation, a contract exists on those terms; any further change requires another counteroffer.
Rule of thumb
Read offers from the top down: parties, property, price, financing, deadlines, contingencies, signatures, and addenda. A counteroffer replaces, not supplements, the prior offer.