Real Estate Fundamentals - Chapter 9: Contracts

15 Questions | Total Attempts: 533

SettingsSettingsSettings
Please wait...
Real Estate Quizzes & Trivia

Questions and Answers
  • 1. 
    A legal agreement between 2 or more parties is known as a contract.
    • A. 

      True

    • B. 

      False

  • 2. 
    The sales contract is more commonly known as "The Complete and Final Contract".
    • A. 

      True

    • B. 

      False

  • 3. 
    A way to distinguish a property from all others can be through either a property address, tax parcel number, deed book and page number or perhaps a legal land description.
    • A. 

      True

    • B. 

      False

  • 4. 
    To be legal and enforceable, real estate contracts must be completed by competent parties. This means that the two or more parties must be of legal age (21 in PA) and not intoxicated through alcohol or drugs or insane to the point of mental incapacity and having the ability to enter into a contract.
    • A. 

      True

    • B. 

      False

  • 5. 
    Pennsylvania and all other states have a law known as The Statute of Laws that requires all contracts regarding the sale of real estate and all documents regarding the transfer of title to real property, to be written and signed.
    • A. 

      True

    • B. 

      False

  • 6. 
    According to the "parole evidence rule" oral statements cannot be used to change or contradict terms of a clearly written contract.
    • A. 

      True

    • B. 

      False

  • 7. 
    A contract is "valid" (meaning legal and enforceable) when it contains the signatures of all the parties to the contract.
    • A. 

      True

    • B. 

      False

  • 8. 
    A "bilateral contract" is an agreement between 2 parties in which both parties make promises to do something and each party can enforce the promises of the other party.
    • A. 

      True

    • B. 

      False

  • 9. 
    A "unilateral contract" is one in which both parties promises to do something in satisfying the contract.
    • A. 

      True

    • B. 

      False

  • 10. 
    An "express contract" is an agreement that is carried out through the actions of a party.
    • A. 

      True

    • B. 

      False

  • 11. 
    An "executed contract" is one in which the parties have entered into the contract and are in process of fulfilling the contract but have not yet completed all the terms and conditions.
    • A. 

      True

    • B. 

      False

  • 12. 
    As it related to real estate, the contract term "assign" means to transfer one's interest in property over to another party.
    • A. 

      True

    • B. 

      False

  • 13. 
    A "novation" is used primarily by lending institutions in their mortgage agreements that allows lenders to sell the mortgages obtained to a purchaser in the secondary market.
    • A. 

      True

    • B. 

      False

  • 14. 
    The "default" term of a contract is also called "breach of contract".
    • A. 

      True

    • B. 

      False

  • 15. 
    If the seller defaults on an agreement of sale, the purchaser has the right to file a lawsuit to make the seller honor the terms of the agreement.
    • A. 

      True

    • B. 

      False

Back to Top Back to top