PSI Real Estate Exam: Contracts Final
Review Fully Solved 2025 Updated.
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.
Exclusive Right to Sell - Answer 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.
Express Contract - Answer A contract that has been put into words, either spoken or written.
Implied Contract - Answer A contract that has not been put into words, but is implied by the
actions of the parties.
Legal Title - Answer The interest in property held by the rightful owner. Also, the vendor's
(seller's) interest in property under a land contract.
Review Fully Solved 2025 Updated.
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.
Exclusive Right to Sell - Answer 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.
Express Contract - Answer A contract that has been put into words, either spoken or written.
Implied Contract - Answer A contract that has not been put into words, but is implied by the
actions of the parties.
Legal Title - Answer The interest in property held by the rightful owner. Also, the vendor's
(seller's) interest in property under a land contract.
