Contracts: real estate exam study notes

A contract is an enforceable promise. Real estate contracts must usually be in writing under the statute of frauds.

Updated 2026-09-23 · 2 sources · By the RealEstateExamKit team

How much it counts

VendorOutline area (salesperson national)
Pearson VUEReal estate contracts and agency (16, shared with agency) of 80 scored items
PSIContracts 19% of the national portion

Study notes

  • Essential elements: competent parties, offer and acceptance (mutual assent), consideration, legal purpose; real estate sales also need a writing and signatures.
  • Void vs voidable vs unenforceable. Void has no legal effect; voidable can be cancelled by one party (e.g., a minor); unenforceable is valid but cannot be sued on (e.g., an oral sales contract).
  • Counteroffers kill the original offer. Acceptance must be unconditional and communicated.
  • Remedies for breach: specific performance, compensatory damages, liquidated damages, rescission.

Exam traps

  • Bilateral vs unilateral. A listing is typically bilateral; an option is unilateral until exercised.
  • Executed vs executory. Executed = fully performed; executory = still to be performed. Signing does not make a contract “executed” in this sense.
  • Time is of the essence makes deadlines strict.

Educational summary, not legal advice. State law can change the rule - your state portion tests your state’s version.

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Sources

  1. Pearson VUE - Texas Real Estate Candidate Handbook (national salesperson outline, effective March 1, 2025) (accessed 2026-09-23)
  2. PSI - Georgia Real Estate Commission Candidate Information Bulletin (national portion outline) (accessed 2026-09-23)