Real Estate Sales Exam FREE Real Estate Sales Real Estate Contracts Questions and Answers 2

Question 1

A buyer signs a purchase agreement but the seller never signs it. What is the status of this transaction?

Accepted Answer

No valid contract exists

Answer

The contract is fully executed

Answer

The contract is voidable by the buyer

Answer

The buyer can enforce the contract through specific performance

Question 2

Which clause in a real estate contract allows a buyer to cancel if they cannot secure financing by a specified date?

Accepted Answer

Financing contingency

Answer

Escalation clause

Answer

Habendum clause

Answer

Acceleration clause

Question 3

What is the legal effect of an 'as-is' clause in a residential purchase contract?

Accepted Answer

The seller will not make repairs but must still disclose known defects

Answer

The seller is exempt from all disclosure requirements

Answer

The buyer waives the right to a home inspection

Answer

The property is sold without any warranties including title

Question 4

In a land contract (contract for deed), when does the buyer typically receive legal title?

Accepted Answer

When all payments under the contract are completed

Answer

At the time of signing the contract

Answer

After the first payment is made

Answer

When the buyer takes physical possession

Question 5

Which of the following would make a real estate contract voidable rather than void?

Accepted Answer

A contract signed by a 17-year-old

Answer

A contract signed by a person declared legally incompetent by a court

Answer

A contract for the sale of a property that has been condemned

Answer

A contract with an illegal purpose

Question 6

What does the 'time is of the essence' clause establish in a real estate purchase contract?

Accepted Answer

Deadlines in the contract are strictly enforceable and failure to meet them is a material breach

Answer

The closing must occur within 30 days

Answer

The seller must vacate the property immediately after closing

Answer

The buyer must complete inspections before making an offer