A buyer has made an offer on a listed property and the seller has signed it, indicating acceptance of the offer. What must still be done before this offer becomes a binding contract of sale?

Recording the accepted offer is not a necessary step for contract formation. While recording may be important for public notice and legal purposes, it does not impact the binding nature of the contract itself. A contract can still be valid even if it is not recorded.

Although depositing earnest money is a common practice that demonstrates the buyer's commitment, it is not a prerequisite for the formation of the contract. The contract becomes binding upon acceptance and notification, regardless of whether earnest money has been paid.

This choice is incorrect because, while the seller's acceptance indicates agreement, a contract is not binding until the buyer is notified of this acceptance. The principle of mutual assent requires that both parties are aware of the agreement for the contract to be enforceable.