(Answered) PSI Real Estate Exam - Contracts

(Answered) PSI Real Estate Exam - Contracts Acceptance 1. Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed. Consideration Anything of value, such as money, services, goods, or promises, given to induce another to enter into a contract. Sometimes called valuable _________ Contingency Clause A provision in a contract or deed that makes the parties’ rights and obligations depend on the occurrence (or nonoccurrence) of a particular event. Counteroffer A counteroffer represents a change. It is a response to an offer to enter into a contract, changing some of the terms of the original offer. A counteroffer is a rejection of the original offer (not a form of acceptance), and does not create a binding contract unless the new counteroffer is accepted by the original offeror Earnest Money 1. Money offered as an indication of good faith regarding the future performance of a purchase agreement. . 2. A tenant's security deposit. Also called: Deposit Equitable Title An interest created in property upon the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (closing). Also, the vendee's (buyer's) interest in property under a land contract. Exclusive Right to Sell A listing agreement that entitles the broker to a commission if anyone including the seller finds a buyer for the property during the listing term.