FREE Wisconsin Real Estate License Transactions & Contracts Questions and Answers
Which type of contract is legally binding in a real estate transaction?
Correct!
Wrong!
A written contract signed by all parties involved in the transaction is legally enforceable in real estate sales.
What is the purpose of a purchase agreement in a real estate transaction?
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Wrong!
A purchase agreement outlines the terms, conditions, and obligations of both the buyer and seller in a property sale.
Why is a closing disclosure important in a real estate transaction?
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Wrong!
A closing disclosure provides final details on loan terms, closing costs, and payment breakdowns before the transaction is finalized.
What is the role of contingencies in a real estate contract?
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Wrong!
Contingencies allow buyers or sellers to withdraw from the contract if specific conditions are not met.
What happens if a buyer fails to meet the terms of a purchase contract?
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Wrong!
If a buyer defaults on a purchase contract, they may forfeit their earnest money or face legal consequences.
What is the purpose of earnest money in a real estate transaction?
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Wrong!
Earnest money is a deposit made by the buyer to show good faith and commitment to the purchase.