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

A contract requires acceptance by all parties, and without the seller's signature there is no mutual agreement.

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

A financing contingency protects the buyer by allowing contract termination if they fail to obtain a mortgage commitment by the deadline.

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

An as-is clause means the seller will not make repairs, but most states still require disclosure of known material defects.

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

In a contract for deed, the seller retains legal title until the buyer fulfills all payment obligations under the agreement.

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 minor is voidable because the minor may choose to disaffirm or ratify it upon reaching the age of majority.

Real Estate Sales Exam Practice Test