What is the difference between a real estate binder, an offer to purchase and a contract?
After you find a house you want to purchase, the realtor will usually ask you to sign a binder or an offer to purchase. These two forms are actually the same thing and are not binding on the parties unless they say something like, This binder will become the contract if no formal contract is signed. A real estate contract is the final, binding agreement between a buyer and seller. In the New Milford area, the contract is customarily prepared by the seller’s attorney. However, in Litchfield and some other nearby towns, the realtor may present a formal contract for your signature.
