What occurs to a contract for the sale of a home after it has been signed by both parties?

When both parties have signed a contract for the sale of a home, the contract is considered executory. This means that while the contract is now binding and enforceable, the obligations set forth in the contract have not yet been fully performed. In an executory contract, both parties have specific duties they must carry out before the transaction is complete. For example, the seller must transfer the property to the buyer, and the buyer must pay the agreed-upon price. Until these conditions are met, the contract remains in this executory phase.

Once all conditions of the contract are fulfilled, it then becomes executed, meaning both parties have completed their respective obligations under the agreement. Thus, the correct understanding of the nature of the contract is that it is initially executory following both signatures, reflecting the ongoing responsibilities that each party has until the sale is finalized.