Offer vs Contract

Just because my Buyer Client has signed papers does not mean that the house is under contract.

"Contract Formation" occurs when both sides have agreed on each and every term and have signed and initialed everywhere on all the papers. The process takes a lot of ink. At that point (and not a minute before), the house is under contract.

In Texas, the date that Contract Formation occurs is also called the Effective Date of the contract. Most of the dates in the contract are counted from the Effective Date, such as the Option Period and the Financing Period.