PSI Real Estate Exam:
Contracts with complete
answers(verified for accuracy)
Acceptance - answer 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 - answer Anything of value, such as money, services,
goods, or promises, given to induce another to enter into a contract.
Sometimes called valuable _________
Contingency Clause - answer 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 - answer 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 - answer 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 - answer 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.
Contracts with complete
answers(verified for accuracy)
Acceptance - answer 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 - answer Anything of value, such as money, services,
goods, or promises, given to induce another to enter into a contract.
Sometimes called valuable _________
Contingency Clause - answer 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 - answer 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 - answer 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 - answer 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.
