Contracts & Agency Flashcards
6 cards from real Real Estate practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Contracts & Agency flashcards as text
A financing contingency in a purchase agreement protects the buyer if:
Answer: The buyer cannot obtain mortgage financing
A financing contingency allows the buyer to cancel the contract and recover their earnest money if they cannot secure a loan as specified in the agreement.
Specific performance as a remedy in real estate means:
Answer: The court orders the breaching party to complete the transaction
Specific performance is a legal remedy requiring the defaulting party to fulfill their contractual obligations since real estate is considered unique.
An option contract in real estate gives the optionee the:
Answer: Right but not the obligation to purchase within a set period
An option contract provides the buyer the right to purchase the property at an agreed price within a specified timeframe, but they are not required to do so.
The Statute of Frauds requires that real estate contracts must be:
Answer: In writing and signed to be enforceable
The Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party to be charged to be legally enforceable.
When a seller responds to a buyer's offer by changing the price, this creates a:
Answer: Counteroffer that voids the original offer
A counteroffer legally rejects the original offer and substitutes a new offer, giving the original offeror the right to accept, reject, or counter again.
An open listing allows the seller to:
Answer: Sell through multiple brokers and pay commission only to the one who produces the buyer
An open listing is a non-exclusive arrangement where multiple brokers may market the property and only the procuring broker earns a commission.