The property was listed for $100,000 and the buyer wrote an offer of $90,000. The seller countered $95,000 and the licensee called the buyer on the phone and was informed that $95,000 was acceptable. Do the parties have a binding purchase agreement?

A meeting of the minds refers to both parties agreeing to the same terms. However, in this case, although the buyer verbally accepted the counteroffer, a legally binding agreement requires written acceptance. Therefore, the verbal agreement does not satisfy the legal requirements for a purchase agreement.

While the buyer's initial offer was lower than the listing price, it is not necessary for the buyer to match the listing price to negotiate. Counteroffers are a common part of negotiation in real estate, and the buyer's acceptance of the counteroffer is what would create the binding agreement, not adherence to the original listing price.

Although the seller's counteroffer must be in writing to be enforceable, the buyer’s acceptance also needs to be documented. A binding agreement requires both parties to agree in writing; thus, even if the seller's counteroffer is written, the buyer's verbal acceptance does not suffice without written confirmation.