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In this real estate tutorial, Morgan York discusses the effective date of a contract, which is determined by the date of the last signature or initial by either party. Many people mistakenly believe it is the date when the offer is submitted. Additionally, a contract becomes legally binding when money is involved in escrow or a deposit held by the title company. Therefore, the contract is enforceable once the agent deposits the money with the title company. Viewers are encouraged to submit questions for future discussions.