When is a real estate contract legally binding in Indiana?

In Indiana, a real estate contract becomes legally binding when it is signed by both parties and contains all the essential elements that make a contract valid. These essential elements typically include an offer, acceptance, consideration, legal capacity of the parties, and a lawful purpose. The mutual agreement and signatures of both parties signify their consent to the terms outlined in the contract, thus creating a legally enforceable obligation.

Verbal agreements, while they may hold some weight under certain circumstances, often lack the specificity and legal enforceability needed for real estate transactions, which is why they do not establish binding contracts. Similarly, acknowledgment by a notary public or submission of a contract to a local real estate board does not inherently create a binding agreement. Notarization may serve as a form of verification but does not influence the binding nature of the contract itself after the necessary signatures are obtained.