A legally enforceable agreement under which both parties promise to do something for each other is called
A bilateral contract
A person approaches an owner and says, "I'd like to buy your house." The owner says. "Sure," and they agree on a price. What kind of contract is this?
Unenforceable
A contract is said to be bilateral if
Both parties to the contract exchange binding promises
During the period of time after a real estate contract is signed, but before title actually passes, the status of the contract is
Executory
A contract for the sale of a real estate that does not state the consideration and provides no basis on which the consideration could be determined is considered
Void
A buyer and a seller signed a contract to purchase. The seller backs out, and the buyer sues for specific performance. What is the buyer seeking in the lawsuit
Transfer of the property
In a preprinted sales contract, several words were crossed out or inserted by the parties. To the eliminate future controversy as to whether the changes were made before or after the contract was signed, the usual procedure is to
Have both parties initial or sign the margin near each change
A buyer makes an offer on a seller's house and the seller accepts. Both parties sign the sales contract. At this point the buyer has what type of title to the property?
Equitable
The sales contract says the buyer will purchase only if an attorney approves the sale by the following Saturday. The attorney's approval is a
Contingency
A real estate professional uses earnest money placed in the company trust account to pay for the rent owed on the real estate professional's office. Using escrow funds for this purpose is
Illegal
An option to purchase binds which of the following parties?
Seller only
A buyer and seller enter into a real estate sales contract. Under the contract's terms, the buyer will pay the seller $500 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate ta
Land sales contract
The purchaser of real estate under an installment contract
Has only an equitable interest in the property's title
Under the statue of frauds, all contracts for the sale of real estate must be
In writing to be enforceable
If, upon the receipt of an offer to purchase a property, the seller makes a counteroffer, the prospective buyer is
Relieved of the original offer
A buyer makes an offer to purchase certain property listed with a real estate professional and leaves an escrow deposit with the real estate professional to show good faith. The real estate professional should
Put the deposit in an account, as provided by state law
While suffering from a mental illness caused delusions, hallucinations, and loss of memory, a person signed a contract to purchase real estate. Which statement regarding the contract to purchase is true?
The contract is
voidable
A real estate professional has found a buyer for a seller's home. The buyer has indicated in writing a willingness to buy the property for $1,000 less than the asking price and has deposited $5,000 in earnest money with the real estate professional. The s
An offer
A buyer and seller agree on a purchase price of $200,000 for a house. The contract contains a clause stating that "time of the essence". Which statement is true?
If the closing date passes and no closing takes place, The contract may be rescinded by the party who was ready to settle on the scheduled date.
A buyer signs a contract under which he is given the right to purchase a property for $130,000 anytime in the next six months. The buyer pays the current owner $500 at the time that contract is signed. Which of the following best describes this agreement?
Contingency