FREE Real Estate Sales Real Estate Contracts Questions and Answers

Question 1

A buyer and seller have signed a purchase agreement. The buyer must still secure financing, and the seller must provide a clear title. At this stage, what is the status of the contract?

Accepted Answer

Executory

Answer

Executed

Answer

Voidable

Answer

Unilateral

Question 2

According to the Statute of Frauds, which of the following agreements MUST be in writing to be enforceable?

Accepted Answer

An agreement to purchase a parcel of real property

Answer

A residential lease for a term of less than one year

Answer

An open listing agreement with a 'first to procure a buyer' clause

Answer

A month-to-month rental agreement

Question 3

A buyer includes a clause in their purchase offer that states, 'This offer is conditional upon the buyer obtaining a conventional loan for 80% of the purchase price at an interest rate not to exceed 5%.' This clause is an example of a(n):

Accepted Answer

Contingency Clause

Answer

Acceleration Clause

Answer

Subordination Clause

Answer

Escalation Clause

Question 4

A seller offers a $5,000 bonus to any broker who brings a ready, willing, and able buyer to purchase their property. This is an example of what type of contract?

Accepted Answer

Unilateral Contract

Answer

Bilateral Contract

Answer

Executed Contract

Answer

Implied Contract

Question 5

Which of the following is an essential element for a real estate contract to be valid and enforceable?

Accepted Answer

Consideration

Answer

Notarization

Answer

Earnest money deposit

Answer

Professional appraisal

Question 6

A buyer has a contract to purchase a property. Before closing, the buyer transfers their rights and obligations under the contract to a new buyer. The seller agrees to release the original buyer from all liability and substitute the new buyer. This process is known as:

Accepted Answer

Novation

Answer

Assignment

Answer

Subrogation

Answer

Defeasance

A buyer and seller have signed a purchase agreement.The buyer must still secure financing, and the seller must provide a clear title.At this stage, what is the status of the contract?

A buyer and seller have signed a purchase agreement.
The buyer must still secure financing, and the seller must provide a clear title.
At this stage, what is the status of the contract?