Purchase Agreements
Practice Exam
2026/2027 VERSION
WITH QUALITY
QUESTIONS AND
VERIFIED ANSWERS
100% CORRECT WITH
RATIONALES AND PDF
DOWNLOAD.
,1. A purchase agreement becomes
legally binding when:
A. The buyer makes an offer
B. The seller lists the property
C. Both parties sign and communicate
acceptance
D. The buyer secures financing
Answer: C
Rationale: A contract requires offer,
acceptance, and communication of
acceptance to be binding.
2. Earnest money is best described as:
A. A loan from the seller
B. Proof of buyer’s serious intent
C. A closing cost
,D. A commission payment
Answer: B
Rationale: Earnest money demonstrates
the buyer’s good faith and intention to
proceed.
3. Which contingency protects a buyer
who cannot obtain a loan?
A. Title contingency
B. Inspection contingency
C. Financing contingency
D. Appraisal contingency
Answer: C
Rationale: A financing contingency
allows the buyer to exit if they cannot
secure a mortgage.
, 4. A counteroffer:
A. Accepts all original terms
B. Rejects the original offer and proposes
new terms
C. Creates an automatic contract
D. Is illegal in real estate
Answer: B
Rationale: A counteroffer terminates the
original offer and replaces it with new
terms.
5. Time is “of the essence” means:
A. Time is flexible
B. Deadlines are strict and enforceable
Practice Exam
2026/2027 VERSION
WITH QUALITY
QUESTIONS AND
VERIFIED ANSWERS
100% CORRECT WITH
RATIONALES AND PDF
DOWNLOAD.
,1. A purchase agreement becomes
legally binding when:
A. The buyer makes an offer
B. The seller lists the property
C. Both parties sign and communicate
acceptance
D. The buyer secures financing
Answer: C
Rationale: A contract requires offer,
acceptance, and communication of
acceptance to be binding.
2. Earnest money is best described as:
A. A loan from the seller
B. Proof of buyer’s serious intent
C. A closing cost
,D. A commission payment
Answer: B
Rationale: Earnest money demonstrates
the buyer’s good faith and intention to
proceed.
3. Which contingency protects a buyer
who cannot obtain a loan?
A. Title contingency
B. Inspection contingency
C. Financing contingency
D. Appraisal contingency
Answer: C
Rationale: A financing contingency
allows the buyer to exit if they cannot
secure a mortgage.
, 4. A counteroffer:
A. Accepts all original terms
B. Rejects the original offer and proposes
new terms
C. Creates an automatic contract
D. Is illegal in real estate
Answer: B
Rationale: A counteroffer terminates the
original offer and replaces it with new
terms.
5. Time is “of the essence” means:
A. Time is flexible
B. Deadlines are strict and enforceable
