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A party to a trust, often a trustee, may take an action even though they are not empowered to do so. A deed of ratification confirms that this action was approved by the authorised party, who are often the beneficaries or members. This allows the previous unauthorised action to be validated.
In the home buying process, a real estate contract is ?ratified? once the buyer and seller have both agreed to terms, but have not completed the final execution. This takes place after an offer has been accepted and earnest money has been exchanged.
They are legally binding, which means that either party may see legal action if the other party does not abide by the contract terms. If an agreement changes, both parties must sign an amendment to reflect that a change has occurred and provide details about the change.
Ratification is when a document gets the approval of a person or group that has the authority to make it a law. Different legal documents are ratified in different ways. Article VII of the U.S. Constitution, for example, specified that the Constitution would become law when ratified by 9 out of 13 states.
Ratified contracts are most commonly used in real estate and refer to a legally binding agreement that has been initially accepted by both the buyer and the seller, typically following negotiations and the signing of a purchase offer.
The process of putting the contract to the members to approve is known as ratification. Usually, the contract does not become valid unless a majority (50% + 1) of the members vote to approve the terms of the contract.