If Buyer A and Seller B make a change to a sale transaction that is in escrow, what must happen for it to be effective?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

For a change to a sale transaction that is currently in escrow to be effective, it must be documented in writing and agreed upon by both parties involved in the transaction. This means that any alterations to the terms of the agreement, such as price adjustments, contingencies, or any other modifications, require a formal and signed document to ensure that both the buyer and seller acknowledge and consent to the changes.

Written documentation is essential in real estate transactions to prevent misunderstandings and disputes later on. It serves as a clear record of what was agreed upon and protects the rights of both parties. Verbal confirmations are not legally binding and can lead to complications if either party later claims that the terms were different. Therefore, mutual written consent is the appropriate and required method for making changes to an escrow transaction.

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