What does the term "mutual consent" refer to in a real estate context?

In a real estate context, "mutual consent" specifically refers to both parties signing the agreement. This signature indicates that all parties are in agreement with the terms outlined in the contract, demonstrating a formal acceptance and commitment to the transaction. The concept of mutual consent is foundational in contract law, as it establishes that parties have not only discussed and agreed upon the terms but have also taken the essential step of executing the contract through their signatures.

While verbal agreements and negotiations may initiate the process, they do not constitute a legally binding contract. Signing the agreement solidifies that both parties acknowledge their obligations and rights as stipulated in the document, creating an enforceable contract.