📝 What Is an Executed Sales Contract in Real Estate?

An Executed Sales Contract is a real estate purchase agreement that has been fully signed by all parties. Execution means every required signature, initial, addendum, and revision has been completed — but the contract is not legally binding until it is also delivered to all parties.

How an Executed Sales Contract Works

A sales contract becomes “executed” once both buyer and seller have signed the final version of the agreement, including any counteroffers or addenda. Execution confirms that all terms have been agreed to in writing.

Key elements required for execution include:

  • All signatures completed — buyer, seller, and any required witnesses or agents.
  • All initials entered — on each page or change in the contract.
  • All addenda signed — inspection addendums, financing addendums, disclosures, etc.
  • Final agreed-upon terms — including price, personal property, deadlines, and contingencies.

Execution completes the signing process, but the agreement does not become binding until delivery — at which point the contract becomes ratified.

Why an Executed Sales Contract Matters

Benefits for Buyers:

  • Confirms the seller has accepted the buyer’s offer.
  • Locks in the negotiated terms and pricing.
  • Ensures the contract cannot be changed without written addenda.
  • Moves the transaction toward ratification.

Benefits for Sellers:

  • Secures the buyer’s commitment to purchase.
  • Protects agreed-upon terms from further negotiation.
  • Provides the required documentation for moving toward closing.
  • Prepares the seller for next steps such as inspection and appraisal.

Example of an Executed Sales Contract

Here’s how a contract becomes executed:

  • The buyer submits an offer to the seller.
  • The seller counters with revisions.
  • The buyer signs the counteroffer.
  • The seller signs the final version.
  • All pages and addenda are initialed or signed.

At this point, the agreement is executed — but it is not yet ratified until it is delivered to all parties.

Why Execution Matters for FSBO Sellers

For FSBO sellers, understanding execution is crucial because it prevents misunderstandings about when a contract becomes official.

  • Confirms the buyer has formally agreed to the deal.
  • Ensures all legal documents are complete before delivery.
  • Prevents disputes over missing signatures or addenda.
  • Creates a properly prepared contract for ratification.

When listing with Flat Fee MLS through Brokerless, sellers receive guidance ensuring contracts are properly executed and ready for delivery.

Frequently Asked Questions

Is an executed contract legally binding?
Not yet. A contract becomes legally binding only when it is both executed and delivered — this is called ratification.

What happens after a contract is executed?
Delivery must occur to all parties, which triggers the ratification date and starts all deadlines such as inspections and financing.

Can terms change after execution?
Only through a written and signed addendum. All parties must agree to any changes.

What if a signature is missing?
The contract is not executed until every required signature and initial is present.