In the context of a real estate contract, what is meant by "executed"?

In the realm of real estate contracts, the term "executed" refers specifically to the situation where the contract has been signed by all parties involved, thereby making it legally binding. This act of signing signifies that all parties agree to the terms and conditions laid out in the contract, creating enforceable obligations. Once executed, the contract outlines the responsibilities and rights of the parties, allowing them to move forward with the transaction with confidence.

Understanding "executed" in this manner is crucial for parties engaged in real estate transactions. It differentiates finalized agreements from those that are still under negotiation or not yet agreed upon. In contrast, options suggesting that the contract is pending approval, verbally agreed upon, or remaining in draft form do not convey the legal binding nature of an executed contract. Each of these other scenarios indicates varying stages of the contract process that do not carry the finality of execution.