Massachusetts Real Estate Exam Ch 8
(Real Estate Contracts) Q&A
Unenforceable Contract - ANSWER-Seems To Be Valid On The Surface, But
Neither Party Can Sue The Other To Force Performance
5 Essential Elements Of A Valid Contract - ANSWER-Competent Parties, Mutual
Assent, Consideration, Legality Of Object, Legal Form
Competent Parties - ANSWER-Legal Age Of Sound Mind
Mutual Assent - ANSWER-Must Have Meeting Of The Minds
Consideration - ANSWER-Something Of Value Must Be Exchanged ($$)
Earnest Money - ANSWER-Given by The Buyer With An Offer to Purchase To Show
An Intent To Complete Contract ($1,000 considered Appropriate)
Legality Of Object - ANSWER-Must Be For Legal Purposes In Order To Be Valid
Legal Form - ANSWER-All Legal Owners Must Sign
Statute Of Limitations - ANSWER-Laws In Every State That Allow A Specific Time
Limit During Which Parties To A Contract May Bring Legal Suit To Enforce Their
Rights (Massachusetts 6 Years*)
Open Listing - ANSWER-Seller Retains Right To Employ Any Number Of Brokers To
Act As The Sellers Agent (Multiple Agents, No MLS, Only Agent Who Sells Gets
Paid)
Exclusive Agency Listing - ANSWER-Only One Broker Is Specifically Authorized To
Act As The Exclusive Agent Of Principal And The Seller Retains The Right To Sell
Without Obligation To The Broker (One Agent Appointed, Seller Reserves Right With
No Commission Due)
Exclusive Right-To-Sell Listing - ANSWER-One Broker Is Appointed As The Sole
Agent Of The Seller And Is Given Exclusive Right To Represent Seller (Commission
Paid Regardless Of Who Sells)
Net Listing - ANSWER-Based On The Amount Of Money The Seller Will Receive If
The Property Is Sold (Illegal In Massachusetts*)
Contingencies - ANSWER-Certain Conditions The Buyer Requires To Be Met Before
The Contract Is Binding (Contract Voidable Until Contingency Is Met)
(Real Estate Contracts) Q&A
Unenforceable Contract - ANSWER-Seems To Be Valid On The Surface, But
Neither Party Can Sue The Other To Force Performance
5 Essential Elements Of A Valid Contract - ANSWER-Competent Parties, Mutual
Assent, Consideration, Legality Of Object, Legal Form
Competent Parties - ANSWER-Legal Age Of Sound Mind
Mutual Assent - ANSWER-Must Have Meeting Of The Minds
Consideration - ANSWER-Something Of Value Must Be Exchanged ($$)
Earnest Money - ANSWER-Given by The Buyer With An Offer to Purchase To Show
An Intent To Complete Contract ($1,000 considered Appropriate)
Legality Of Object - ANSWER-Must Be For Legal Purposes In Order To Be Valid
Legal Form - ANSWER-All Legal Owners Must Sign
Statute Of Limitations - ANSWER-Laws In Every State That Allow A Specific Time
Limit During Which Parties To A Contract May Bring Legal Suit To Enforce Their
Rights (Massachusetts 6 Years*)
Open Listing - ANSWER-Seller Retains Right To Employ Any Number Of Brokers To
Act As The Sellers Agent (Multiple Agents, No MLS, Only Agent Who Sells Gets
Paid)
Exclusive Agency Listing - ANSWER-Only One Broker Is Specifically Authorized To
Act As The Exclusive Agent Of Principal And The Seller Retains The Right To Sell
Without Obligation To The Broker (One Agent Appointed, Seller Reserves Right With
No Commission Due)
Exclusive Right-To-Sell Listing - ANSWER-One Broker Is Appointed As The Sole
Agent Of The Seller And Is Given Exclusive Right To Represent Seller (Commission
Paid Regardless Of Who Sells)
Net Listing - ANSWER-Based On The Amount Of Money The Seller Will Receive If
The Property Is Sold (Illegal In Massachusetts*)
Contingencies - ANSWER-Certain Conditions The Buyer Requires To Be Met Before
The Contract Is Binding (Contract Voidable Until Contingency Is Met)
