FREE Real Estate Sales Contracts & Negotiations Questions and Answers

Question 1

Which of the following describes a unilateral contract in real estate?

Accepted Answer

A contract where only one party makes a promise and the other party performs an act.

Answer

A contract where both parties exchange promises to perform a future act.

Answer

A contract that is fully performed by all parties at the time of agreement.

Answer

A contract that is unenforceable due to a lack of consideration from one party.

Question 2

A buyer makes an offer on a property, and the seller responds with a counteroffer. Which of the following statements is true regarding the original offer?

Accepted Answer

The original offer is automatically terminated by the counteroffer.

Answer

The original offer remains open until explicitly withdrawn by the buyer.

Answer

The seller is still bound by the terms of the original offer for a reasonable time.

Answer

The buyer can accept the original offer even after receiving the counteroffer.

Question 3

What is the legal principle that requires certain contracts, including those for the sale of real estate, to be in writing to be enforceable?

Accepted Answer

The Statute of Frauds

Answer

The Doctrine of Laches

Answer

The Statute of Limitations

Answer

The Parol Evidence Rule

Question 4

During negotiations for a property purchase, the buyer makes an offer that includes a contingency that the property must appraise for at least the purchase price. If the appraisal comes in lower, what is the most likely outcome if the contingency is not waived?

Accepted Answer

The contract becomes voidable, and the buyer may terminate it without penalty.

Answer

The buyer is still obligated to purchase the property at the agreed-upon price.

Answer

The seller is obligated to reduce the price to match the appraisal.

Answer

The real estate agents are responsible for making up the difference.

Question 5

Which of the following is considered 'valuable consideration' necessary for a valid real estate contract?

Accepted Answer

A monetary payment or a promise of one.

Answer

A promise to keep the property tidy for showing.

Answer

A personal favor done for the seller previously.

Answer

The agent's promise to provide excellent service.

Question 6

A real estate contract is considered 'executed' when:

Accepted Answer

All terms and conditions of the contract have been fully performed.

Answer

It has been signed by all parties.

Answer

It has been recorded in the public records.

Answer

The earnest money deposit has been received.