Chapter 9 - Real Estate Contracts Practice Questions

In addition to the essential elements of a valid contract, real estate contracts must include what?

An accurate legal description of the property

One who assigns or transfers property is referred to as a/an...?

Assignor

A contract in which each party promises to do something is referred to as a...?

Bilateral contract

A listing contract is an example of a/an?

Bilateral contract

To mingle or mix, for example, a client's funds in the broker's personal or general account is known as?

Commingling

Until a purchase contract is closed upon, it is considered a/an?

Executory contract

Damages benefiting the non-defaulting party as a result of a default of a contract are known as?

Liquidated Damages

A meeting of the minds between two parties is also known as?

Offer and acceptance

What real estate contracts must be in writing?

Sales contract Lease contract for greater than 1 year Purchase contract for a multi-family property

The sale of a property as an alternative to damages is an example of?

Specific performance

This contract is formed only if another party performs that requested act?

Unilateral Contract

A contract that has no force or effect is referred to as a/an?

Void Contract

If a contract is not for legal purpose, it is considered a/an?

Void contract

Anything given or promised by a party to induce another to enter into a contract is known as?

consideration

An agreement that has not been put into words, but is implied by the actions of the parties is known as a/an?

implied contract

A down payment made by a purchaser of real estate as evidence of good faith is known as?

Earnest money deposit

Those to whom property or interests therein shall have been transferred are known as...?

Assignees

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...?

Assignment

If one of the parties to a contract wants to withdraw without terminating the contract, which of the following can be used...?

Assignment

A violation of the terms or conditions of a contract without legal excuse is known as a?

Breach

The unlawful appropriation of another's property or earnest money deposit is known as?

Conversion

When a contract is fully performed, the contract is considered?

Discharged

An interest in real estate such that a court will take notice and protect the owner's rights is known as?

Equitable title

Real estate agents use which contracts?

Express Contracts Listing Contracts Buyer Representation Agreements

When you give your keys to a valet, you assume that the valet will park your car in exchange for a fee. This is because a/an... contract was created between you and the valet?

Implied

What contract is NOT required to be in writing?

Lease under 1 year

A listing contract exists between a seller and the?

Real estate broker

A contract by which a buyer and seller agree to the terms of a sale is known as a?

Sales contract

This is a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time?

Time is of the Essence

Oral listing agreement between a seller and a broker are?

Unenforceable

If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an?

Voidable contract