So when exactly is the effective date (if using the 2-T)?

Knowing the effective date is important because it signifies when the contract’s terms are officially in effect. The effective date marks when the contract becomes legally binding and enforceable for both parties. Accurately establishing the effective date helps prevent misunderstandings and disputes.

The effective date can be considered day zero of the contract and allows the parties to establish a timeline for tasks to be completed for all parties. For example, if the parties have agreed to a due diligence fee, once the contract is binding the fee is due.

So how do we determine the effective date in NC?

The short answer is that it depends on if your contract is written using form 2-T or drafted by a real estate attorney. If it has been drafted by an attorney, then that contract should define when the contract is binding. If using Form 2-T, the effective date occurs when the following two things take place:

1)      All parties have signed the offer (or initialed the counteroffer)

2)      The party to whom the offer (or counteroffer) was made has communicated that they have signed the offer.

So, if all parties have signed the offer and it has been communicated to the party who made the offer then that is the effective date.  If you are the buyer who submits an offer on the 15th of May and the seller signs on the 16th of May but does not communicate to you or your agent that the offer has been signed until the 17th, then the effective date is the 17th of May. It matters not the date that the last person signed the contract. The contract has to be signed by all parties and communicated.

Does the acceptance have to be communicated in writing?

Again, it depends on which contract the parties have used. If it is the 2-T, the contract states that acceptance can be communicated by any means sufficient to manifest acceptance, including but not limited to personal delivery of the signed offer, oral communication, or communication via email or text.

As an ex-auditor, I would say despite the fact that oral communication is an acceptable communication method, always document so as to reduce any potential misunderstandings.

If you have any questions, please reach out to me at CJ@clairesells.com or visit my website www.clairesells.com.