Contracts

Question 1

Which real estate term is this?

Occurs when a party agrees to the exact terms of another party’s offer in a contract.

Answer 1

Acceptance

Question 2

Which real estate term is this?

Expenses owed by the seller but later paid by the buyer, such as property taxes or utility bills.

Answer 2

Accrued Items

Question 3

Which real estate term is this?

An attachment to an agreement that adds or modifies information in the contract.

Answer 3

Addendum/Addenda

Question 4

Which real estate term is this?

A change or modification to the existing content of a contract, statute, or regulation.

Answer 4

Amendment

Question 5

Which real estate term is this?

A transfer of rights or obligations from one party to a third party without canceling the contract.

Answer 5

Assignment

Question 6

Which real estate term is this?

An offer accepted pending the outcome of a primary agreement, potentially replacing it if it falls through.

Answer 6

Back-up Offer

Question 7

Which real estate term is this?

A contract where two or more parties agree to exchanges, placing obligations on both.

Answer 7

Bilateral Contract

Question 8

Which real estate term is this?

Occurs when a party fails to perform their obligations as agreed in the contract.

Answer 8

Breach of Contract

Question 9

Which real estate term is this?

A court action that can terminate a contract or agreement, or a section/subsection of a contract or agreement, without restoring the parties to their pre-agreement conditions.

Answer 9

Cancellation

Question 10

Which real estate term is this?

A lease where most rights and obligations are specified in the contract, not subject to fair housing laws.

Answer 10

Commercial Leases

Question 11

Which real estate term is this?

Benefit, detriment, promise, or value bargained for in a contract, which could be money, property, or a specific action.

Answer 11

Consideration

Question 12

Which real estate term is this?

A specific event, action, or condition that must occur for an offer or purchase agreement to remain in force.

Answer 12

Contingency

Question 13

Which real estate term is this?

Duties specifically detailed to each party in a contract, including an implied covenant of good faith.

Answer 13

Contractual Duties

Question 14

Which real estate term is this?

A response to an initial contract offer, revising terms to be more acceptable, rejecting the original offer.

Answer 14

Counteroffer

Question 15

Which real estate term is this?

A contract where all parties have completed their obligations.

Answer 15

Executed and Executory Contracts

Question 16

Which real estate term is this?

A contract made with the intent to create an agreement by all parties.

Answer 16

Express Contract

Question 17

Which real estate term is this?

A contract not created by express agreement but by the party’s actions as interpreted by the court.

Answer 17

Implied Contract

Question 18

Which real estate term is this?

A defense to breach of contract when fulfilling the contract is illegal or physically impossible.

Answer 18

Impossibility

Question 19

Which real estate term is this?

Lack of mental or physical ability to perform basic functions competently, affecting contract formation or duties.

Answer 19

Incapacity

Question 20

Which real estate term is this?

A critical element of a contract meaning that the parties must each knowingly and purposefully enter into a contract, and their spoken or written words must communicate that intention.

Answer 20

Intent

Question 21

Which real estate term is this?

One involving a material element of a contract about which both parties are mistaken with regard to a material fact.

Answer 21

Mutual Mistake

Question 22

Which real estate term is this?

A process of replacing an original contract with a new agreement between the same parties.

Answer 22

Novation

Question 23

Which real estate term is this?

The action that starts the process of forming a contract.

Answer 23

Offer

Question 24

Which real estate term is this?

The person or entity receiving an offer, commonly the seller in real estate.

Answer 24

Offeree

Question 25

# Which real estate term is this? The person or entity making an offer, commonly the buyer in real estate.

Answer 25

Offeror

Question 26

# Which real estate term is this? A contract invalidated by legal action or required/prohibited by statute.

Answer 26

Operation of Law

Question 27

# Which real estate term is this? A unilateral agreement where the seller must sell, but the buyer has the option to buy.

Answer 27

Option Agreement

Question 28

# Which real estate term is this? An agreement between parties for an exchange of promises not written down.

Answer 28

Oral Contract

Question 29

# Which real estate term is this? When some contract terms have been fulfilled and accepted by the owed party.

Answer 29

Partial Performance

Question 30

# Which real estate term is this? Doing what is required by a contract.

Answer 30

Performance

Question 31

# Which real estate term is this? The direct relationship existing between parties to the same contract.

Answer 31

Privity of Contract

Question 32

# Which real estate term is this? Standardized forms mandated by the governing authority unless otherwise approved by an attorney.

Answer 32

Promulgated Contracts

Question 33

# Which real estate term is this? An agency relationship where actions are accepted by a principal without prior authority.

Answer 33

Ratification

Question 34

# Which real estate term is this? Equitable remedy to correct a real estate agreement to reflect true terms.

Answer 34

Reformation

Question 35

# Which real estate term is this? Non-acceptance of an offer.

Answer 35

Rejection

Question 36

# Which real estate term is this? Lawful actions by the court to compensate for a contract breach.

Answer 36

Remedies

Question 37

# Which real estate term is this? When a contract party informs others they will not be bound by its terms.

Answer 37

Repudiation

Question 38

# Which real estate term is this? Equitable remedy to terminate a contract as if it never existed.

Answer 38

Rescission (and Restitution)

Question 39

# Which real estate term is this? Key document outlining how a real estate transaction will be conducted.

Answer 39

Sales Contract

Question 40

# Which real estate term is this? Measurement of whether obligations performed on a contract are substantially fulfilled.

Answer 40

Substantial Performance

Question 41

# Which real estate term is this? Means a particular action must be completed within a reasonable time period.

Answer 41

Timely Manner

Question 42

# Which real estate term is this? A contract not recognized by courts due to missing elements or practical enforcement issues.

Answer 42

Unenforceable Contract

Question 43

# Which real estate term is this? A contract where only one party is obligated to act, such as exercising an option to buy.

Answer 43

Unilateral Contract

Question 44

# Which real estate term is this? An agreement enforceable by the court(s).

Answer 44

Valid Contract

Question 45

# Which real estate term is this? A required contract element ensuring it does not involve illegal activities.

Answer 45

Valid Legal Purpose

Question 46

# Which real estate term is this? Contract made with a party lacking legal capacity, which can be validated or invalidated upon regaining capacity.

Answer 46

Voidable Contracts

Question 47

# Which real estate term is this? Unenforceable contract with no legal force, often due to illegal purpose.

Answer 47

Void Contracts

Question 48

# Which real estate term is this? Agreement between parties for an exchange of promises, documented and signed.

Answer 48

Written Contract

Question 49

# Which real estate term is this? What one party offers in a contract, often as money, in exchange for performance.

Answer 49

Consideration

Question 50

# Which real estate term is this? A contractual agreement where the buyer purchases property on an installment basis, often occupying it until the total cost is met.

Answer 50

Contract for Deed ## Footnote Contrast with Closing.

Question 51

# Which real estate term is this? Grants an agent or brokerage sole right to represent the seller, but the seller can bring the buyer themselves without owing a commission to the listing agent.

Answer 51

Exclusive Listing

Question 52

# Which real estate term is this? A form of listing agreement where the listing agent is guaranteed a commission regardless of who brings the buyer, as long as the property is sold.

Answer 52

Exclusive Right-to-Sell Listing

Question 53

# Which real estate term is this? A certificate used to find out about the relationship between landlord and tenant.

Answer 53

Landlord Tenant Estoppel

Question 54

# Which real estate term is this? The legal standard for competency to form a contract, including age and absence of legal disability.

Answer 54

Legal Capacity

Question 55

# Which real estate term is this? A contract between the owner of a property and a real estate broker authorizing the broker, for a fee, to market the property in an effort to find a qualified buyer. Regulations vary by state.

Answer 55

Listing Agreement

Question 56

# Which real estate term is this? When the seller sets an amount of profit they wish to receive from the sale and the licensee is entitled to any amount obtained above that minimum.

Answer 56

Net Listing

Question 57

# Which real estate term is this? Occurs when the offeree informs the offeror of acceptance on exact terms.

Answer 57

Offer and Acceptance

Question 58

# Which real estate term is this? Costs incurred by the nonbreaching party in anticipation of contract fulfillment.

Answer 58

Reliance Damages

Question 59

# Which real estate term is this? Lease types where the property owner pays varying numbers of costs like taxes, utilities, or insurance.

Answer 59

Single, Double, and Triple Net Leases

Question 60

# Which real estate term is this? An equitable remedy ordering a party to fulfill specific contractual duties.

Answer 60

Specific Performance

Question 61

# Which real estate term is this? A contract must have this to be enforceable, being possible, legal, and not against public policy.

Answer 61

Valid Legal Purpose