📝 What Is a Ratified Sales Contract in Real Estate?

A Ratified Sales Contract is a real estate purchase agreement that has been fully accepted, signed, and delivered by both the buyer and seller. Once ratified, the contract becomes legally binding and officially starts all transaction deadlines such as inspections, contingencies, and closing timelines.

How a Ratified Sales Contract Works

A contract becomes “ratified” when every party has agreed to all terms, signed the final version, and the executed agreement has been delivered to all parties. This marks the moment the deal is officially in effect.

Key components required for ratification include:

  • All signatures completed — buyer, seller, and any addenda or counteroffers.
  • Final terms agreed upon — including price, closing date, contingencies, and included items.
  • Delivery of the fully executed contract — typically through email or an e-signature platform.
  • Recognition of the ratification date — which starts all contract timelines.

The ratification process ensures both parties understand the terms and are legally committed to moving forward with the sale.

Why a Ratified Sales Contract Matters

Benefits for Buyers:

  • Provides legal certainty that the seller has accepted the deal.
  • Starts inspection, appraisal, and financing timelines.
  • Ensures the seller cannot accept another offer.
  • Gives clarity and structure for completing the transaction.

Benefits for Sellers:

  • Confirms the buyer’s commitment to purchase.
  • Allows the seller to plan for move-out and closing.
  • Stops marketing the property and prevents further negotiations.
  • Triggers deadlines that help keep the buyer on track.

Example of a Ratified Sales Contract

A typical ratification scenario might look like this:

  • The buyer submits an offer on the home.
  • The seller counters with adjustments.
  • The buyer accepts the changes and signs.
  • The seller signs the final version.
  • The signed contract is returned to all parties.

Once delivery occurs, the written agreement is officially ratified and the transaction timeline begins.

Why It Matters for FSBO Sellers

FSBO sellers often manage negotiations and paperwork on their own. Understanding when a contract is truly ratified ensures they don't mistakenly believe a deal is binding before all signatures and deliveries are complete.

  • Prevents misunderstandings about when the deal becomes official.
  • Confirms when sellers must stop accepting new offers.
  • Helps track buyer deadlines and contingency periods.
  • Strengthens the legal enforceability of the agreement.

When listing with Flat Fee MLS through Brokerless, sellers receive support ensuring contracts are properly executed and legally binding.

Frequently Asked Questions

Is ratification the same as execution?
Not exactly. A contract is executed when all signatures are complete. It is ratified once the fully signed agreement has been delivered to all parties.

When do deadlines start?
Deadlines begin on the ratification date, not when the first person signs.

Can the seller accept another offer after ratification?
No. Once the contract is ratified, both parties are legally committed.

What if changes are made after signatures?
Any change requires a signed addendum — and ratification resets only if the addendum alters deadlines or material terms.