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National Test - Real Estate Contracts and Agency Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the legal status of a contract that is missing one of the essential elements?✔✔Void
When both parties to a contract have fulfilled their obligations, the contract is considered what?✔✔Executed
What type of contract is formed when one party makes a promise in exchange for an action by the other party?✔✔Unilateral contract
What does the term "specific performance" refer to in a real estate contract?✔✔A court order requiring the parties to fulfill the contract terms
Who typically signs a listing agreement in a real estate transaction?✔✔The seller and the listing broker or agent 1 / 3
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What is the term for a contract that appears valid but cannot be enforced by law?✔✔Unenforceable
What is the meaning of the term "offer and acceptance" in contract law?✔✔Mutual agreement between parties to form a binding contract
What happens when a counteroffer is made in a real estate negotiation?✔✔The original offer is terminated
What is the agent’s duty of full disclosure primarily meant to protect?✔✔The interests of the client
What is the term for something of value exchanged between parties in a contract?✔✔Consideration
If a seller accepts an offer but changes one term, what is the legal effect?✔✔It becomes a counteroffer 2 / 3
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What kind of listing agreement allows multiple brokers but only pays the one who brings a buyer?✔✔Open listing
What is the name of the fiduciary duty that prevents an agent from disclosing confidential information?✔✔Loyalty
Who does the buyer’s agent owe fiduciary duties to?✔✔The buyer
What is it called when a contract is intentionally not honored by one of the parties?✔✔Breach of contract
What is the purpose of an "option contract" in real estate?✔✔To give one party the right to buy or lease property within a specific time
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