REAL ESTATE
CONTRACTS FINAL
Exam Questions And
Correct Answers
(Verified Answers)
Plus Rationales
2025/2026 Q&A |
Instant Download Pdf
1. A real estate contract must include which of the following
to be valid?
A. Oral agreement only
B. Consideration, lawful purpose, competent parties
C. Realtor approval
D. Home inspection report
Answer: B
,Rationale: A valid contract requires consideration, lawful
purpose, mutual assent, and competent parties.
2. Which contract element refers to something of value
exchanged?
A. Capacity
B. Consideration
C. Statute
D. Delivery
Answer: B
Rationale: Consideration is the exchange of value between
parties.
3. A void contract is:
A. Enforceable
B. Illegal and unenforceable
C. Optional
D. Pending approval
Answer: B
Rationale: A void contract has no legal effect.
4. A voidable contract means:
A. Cannot be enforced
B. Valid but can be canceled by one party
C. Illegal
D. Completed
Answer: B
,Rationale: One party has the option to void it due to issues
like fraud or duress.
5. What does “mutual assent” mean?
A. One-sided agreement
B. Both parties agree to terms
C. Government approval
D. Broker consent
Answer: B
Rationale: Mutual agreement is required (offer +
acceptance).
6. The Statute of Frauds requires real estate contracts to be:
A. Oral
B. Written
C. Notarized only
D. Verbal with witness
Answer: B
Rationale: Real estate contracts must be in writing to be
enforceable.
7. An offer becomes a contract when it is:
A. Written
B. Accepted
C. Delivered
D. Appraised
, Answer: B
Rationale: Acceptance creates a binding agreement.
8. Revocation of an offer occurs when:
A. Buyer accepts
B. Seller withdraws before acceptance
C. Closing happens
D. Title transfers
Answer: B
Rationale: Offers can be revoked before acceptance.
9. Counteroffer means:
A. Accepting original offer
B. Rejecting and changing terms
C. Ignoring offer
D. Closing deal
Answer: B
Rationale: A counteroffer replaces original terms.
10. Which is NOT a required element of a contract?
A. Legal purpose
B. Consideration
C. Competent parties
D. Marketing plan
Answer: D
Rationale: Marketing is not a legal requirement.
CONTRACTS FINAL
Exam Questions And
Correct Answers
(Verified Answers)
Plus Rationales
2025/2026 Q&A |
Instant Download Pdf
1. A real estate contract must include which of the following
to be valid?
A. Oral agreement only
B. Consideration, lawful purpose, competent parties
C. Realtor approval
D. Home inspection report
Answer: B
,Rationale: A valid contract requires consideration, lawful
purpose, mutual assent, and competent parties.
2. Which contract element refers to something of value
exchanged?
A. Capacity
B. Consideration
C. Statute
D. Delivery
Answer: B
Rationale: Consideration is the exchange of value between
parties.
3. A void contract is:
A. Enforceable
B. Illegal and unenforceable
C. Optional
D. Pending approval
Answer: B
Rationale: A void contract has no legal effect.
4. A voidable contract means:
A. Cannot be enforced
B. Valid but can be canceled by one party
C. Illegal
D. Completed
Answer: B
,Rationale: One party has the option to void it due to issues
like fraud or duress.
5. What does “mutual assent” mean?
A. One-sided agreement
B. Both parties agree to terms
C. Government approval
D. Broker consent
Answer: B
Rationale: Mutual agreement is required (offer +
acceptance).
6. The Statute of Frauds requires real estate contracts to be:
A. Oral
B. Written
C. Notarized only
D. Verbal with witness
Answer: B
Rationale: Real estate contracts must be in writing to be
enforceable.
7. An offer becomes a contract when it is:
A. Written
B. Accepted
C. Delivered
D. Appraised
, Answer: B
Rationale: Acceptance creates a binding agreement.
8. Revocation of an offer occurs when:
A. Buyer accepts
B. Seller withdraws before acceptance
C. Closing happens
D. Title transfers
Answer: B
Rationale: Offers can be revoked before acceptance.
9. Counteroffer means:
A. Accepting original offer
B. Rejecting and changing terms
C. Ignoring offer
D. Closing deal
Answer: B
Rationale: A counteroffer replaces original terms.
10. Which is NOT a required element of a contract?
A. Legal purpose
B. Consideration
C. Competent parties
D. Marketing plan
Answer: D
Rationale: Marketing is not a legal requirement.
