Real Estate Sales Real Estate Contracts Questions and Answers

Question 1

A buyer submits an offer to purchase a home, and the seller accepts.
However, the contract states that the purchase is dependent on the buyer successfully obtaining a mortgage for at least $250,000 within 30 days.
What is this clause called?

Accepted Answer

A contingency clause

Answer

An addendum

Answer

An acceleration clause

Answer

A due-on-sale clause

Question 2

Which of the following contracts must be in writing to be enforceable under the Statute of Frauds?

Accepted Answer

A contract for the sale of a condominium

Answer

A six-month residential lease

Answer

An open listing agreement with a broker

Answer

A month-to-month rental agreement

Question 3

A seller gives a potential buyer the exclusive right to purchase their property for a specified price within a 90-day period. The buyer pays the seller $1,000 for this right but is not obligated to make the purchase. This is an example of a(n):

Accepted Answer

Option contract

Answer

Right of first refusal

Answer

Bilateral contract

Answer

Installment contract

Question 4

If a seller breaches a valid and enforceable sales contract, which of the following remedies is available to the buyer?

Accepted Answer

Sue for specific performance

Answer

File a complaint with the local real estate board only

Answer

Unilaterally amend the contract terms

Answer

Place a mechanic's lien on the property

Question 5

A standard real estate purchase agreement, where a buyer promises to buy and a seller promises to sell, is an example of what type of contract?

Accepted Answer

Bilateral contract

Answer

Implied contract

Answer

Unilateral contract

Answer

Voidable contract

Question 6

For a real estate contract to be valid and legally binding, it must contain several essential elements. Which of the following is NOT a required element for a valid contract?

Accepted Answer

Notarization

Answer

Competent parties

Answer

Lawful objective

Answer

Consideration

A buyer submits an offer to purchase a home, and the seller accepts.However, the contract states that the purchase is dependent on the buyer successfully obtaining a mortgage for at least $250,000 within 30 days.What is this clause called?

A buyer submits an offer to purchase a home, and the seller accepts.
However, the contract states that the purchase is dependent on the buyer successfully obtaining a mortgage for at least $250,000 within 30 days.
What is this clause called?