What must happen once a real estate contract is formed?

Once a real estate contract is formed, both parties are legally obligated to perform according to the terms agreed upon in the contract. This mutual obligation is a fundamental element of contract law, known as "bilateral obligation," which means that the responsibilities and duties specified in the contract must be fulfilled by all parties involved to ensure the contract's enforceability.

In real estate transactions, this typically involves the seller fulfilling their obligation to transfer ownership of the property and the buyer making the agreed payment in exchange. If either party fails to perform as required, it may result in a breach of contract, which can lead to legal consequences, including potential damages or specific performance remedies. Therefore, both parties must act according to the contract for it to be upheld legally.