What is an executed contract?

An executed contract refers to a contract that has been fully performed by all parties involved. This means that all the terms and conditions outlined in the agreement have been fulfilled. For example, in a real estate transaction, an executed contract would indicate that both the buyer and the seller have completed all necessary actions such as signing the contract, transferring funds, and conveying the property. An executed contract signifies that the agreement is no longer just an intention but has been acted upon, resulting in the completion of the obligations defined within it.

In contrast, contracts that are merely signed but not yet performed, those agreed upon orally, or those declared void do not meet the criteria of being executed. Therefore, understanding the significance of executed contracts is fundamental in real estate, as it reflects the finality and completion of contractual obligations.