PSI Real Estate Exam: Contracts
Acceptance - correct 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 - correct 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 - correct answer ✔✔A provision in a contract or deed that makes the partiesÃ
¢Â€Â™ rights and obligations depend on the occurrence (or nonoccurrence) of a particular event.
Counteroffer - correct 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 - correct 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 - correct 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 - correct 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 - correct answer ✔✔A contract that has been put into words, either spoken or written.
Implied Contract - correct answer ✔✔A contract that has not been put into words, but is implied by the
actions of the parties.
Acceptance - correct 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 - correct 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 - correct answer ✔✔A provision in a contract or deed that makes the partiesÃ
¢Â€Â™ rights and obligations depend on the occurrence (or nonoccurrence) of a particular event.
Counteroffer - correct 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 - correct 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 - correct 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 - correct 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 - correct answer ✔✔A contract that has been put into words, either spoken or written.
Implied Contract - correct answer ✔✔A contract that has not been put into words, but is implied by the
actions of the parties.
