Real Estate License Contracts 2

Question 1

Which element is NOT required for a real estate contract to be legally valid?

Accepted Answer

Notarization by a public notary

Answer

Notarization is not a required element for a valid contract; offer, acceptance, capacity, consideration, and legal purpose are.

Question 2

A contract signed by a minor for the purchase of real estate is generally considered:

Accepted Answer

Voidable by the minor

Answer

Contracts with minors are voidable at the option of the minor because they lack full legal capacity.

Question 3

Under the Statute of Frauds, a contract for the sale of real estate must be:

Accepted Answer

In writing and signed

Answer

The Statute of Frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 4

When a buyer makes a counteroffer, the original offer is:

Accepted Answer

Automatically terminated

Answer

A counteroffer rejects and terminates the original offer, creating a new offer.

Question 5

Consideration in a real estate contract refers to:

Accepted Answer

Something of value exchanged by the parties

Answer

Consideration is the thing of value (money, promise, etc.) each party gives, making the contract binding.

Real Estate License Practice Test