A licensee listed a property that had an unfinished garage.

A contract is only created when there is an offer, acceptance, and consideration. In this case, the buyer made an offer subject to a condition (the garage being finished). However, until the seller accepts the offer, no contractual obligation exists. The mere existence of an offer—even if definite and certain—does not bind either party until acceptance has been communicated.

Massachusetts real estate exam law and practice stress that the offer to purchase is not binding on the seller until accepted. Once the seller accepts, it becomes a valid and enforceable contract, provided that all other legal elements (consideration, competent parties, lawful purpose, and in writing per the Statute of Frauds) are satisfied. The requirement for notarization is not necessary for a valid sales contract in Massachusetts; notarization is only required in the case of deeds or certain recorded instruments.

Thus, since the seller had not yet accepted, there was no contract—only a pending offer with a condition.