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

Question 1

A buyer submits an offer that changes the price in the seller's original offer. Under contract law, this is considered which of the following?

Accepted Answer

A counteroffer

Answer

An acceptance

Answer

A novation

Answer

An assignment

Question 2

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

Accepted Answer

Financing contingency clause

Answer

Acceleration clause

Answer

Due-on-sale clause

Answer

Subordination clause

Question 3

In a bilateral contract for the sale of real estate, which of the following best describes the obligations of the parties?

Accepted Answer

Both parties exchange binding promises to perform

Answer

Only the seller is bound to perform

Answer

Only the buyer is bound to perform

Answer

A third party guarantees performance

Question 4

When a seller accepts an offer but adds a requirement that closing must occur 10 days earlier than proposed, what has the seller created?

Accepted Answer

A counteroffer

Answer

A valid acceptance

Answer

A void contract

Answer

An option agreement

Question 5

A real estate purchase contract states that 'time is of the essence.' What does this phrase mean?

Accepted Answer

Deadlines in the contract are strictly enforceable

Answer

The contract must be recorded immediately

Answer

The property must be appraised within 24 hours

Answer

The buyer must move in on the closing date

Question 6

Which of the following is required for a real estate sales contract to be enforceable under the Statute of Frauds?

Accepted Answer

A written agreement signed by the party to be charged

Answer

Verbal agreement witnessed by two people

Answer

A notarized oral promise

Answer

An email confirmation without signatures