Real estate deals can move fast—and they can fall apart just as quickly if you don’t understand when a contract is truly binding. Many buyers and sellers assume that once everyone agrees in principle, the deal is done. But in real estate, that’s not enough.

Here’s a real-world example that shows why attention to detail matters.

The Story

A buyer and seller had finally agreed on a sales price after several rounds of negotiation. The last agreement was verbal and now they had to put it on paper. The seller crossed out the old price on the offer, wrote in the new price, initialed it, and sent it back.

The buyer received it, initialed the new price, and even filled in a ratification date (the date when both parties officially agree to all terms). But the buyer also made one tiny change: instead of having the title company hold the deposit, they wrote in that their own agent’s company would hold it. They initialed that change and sent it off to the seller.

Deal done, right?

Not so fast.

The seller never agreed to that last change—and instead chose to accept an offer from another buyer that came in unexpectedly. 

The first buyer’s agent was shocked. “But we had a ratified contract!”

The seller’s agent explained: “Your buyer changed a term of the contract. That made it a counteroffer—not a ratified contract.”

The Lesson

For a real estate contract to be considered ratified (official and binding), here’s what must happen:

✅ Both buyer and seller must agree to every term of the contract—even the small ones.
✅ Any changes must be signed off on by both parties and delivered in writing.
✅ If either party makes a change that hasn’t been agreed to, it becomes a new offer or counteroffer—not a final contract.

Even something as simple as changing who holds the deposit is considered a material change. Until both parties sign off on it, there is no ratified contract—and either party can still walk away.

What about simple typos?

• If the buyer’s name is spelled incorrectly but both parties agree and initial the correction, it’s usually fine (a clerical correction).

• If a property address has a typo but all other information makes it clear which property is being sold (such as a tax ID or plot and section number), the contract can still be valid—though it’s always wise to correct the mistake and have both parties initial it.

• If a typo causes confusion about the property being sold, the contract isn’t considered ratified until that’s cleared up.

The Bottom Line

In real estate, close enough isn’t good enough. Until both parties have signed and agreed to every single term—with no unapproved changes—the contract isn’t binding.

Takeaway for Buyers and Sellers:

• Pay close attention to any changes in the contract—even small ones.

• Don’t assume the deal is done until both sides have officially agreed and signed.

• When in doubt, ask your agent to confirm whether the contract is fully ratified.

Real estate deals hinge on the details—be sure yours are all buttoned up.