Real Estate Practice Test

Real Estate Contracts & Agency Practice Questions

Contracts & Agency makes up 10 of every 50 questions on a Tigertest Real Estate practice test. Here are 10 of the 40 questions on it, each with the answer and the reason.

Updated 2026-11-10 by the Tigertest team. Weighted to the Pearson VUE national salesperson outline (2025), which matches PSI's. Your state portion is separate.

1. 1. A contract in which the parties' agreement is shown by their conduct rather than stated in words is called:

   • A.An express contract
   • B.An implied contract
   • C.A unilateral contract
   • D.An executed contract

   Answer: B. An implied contract is created by the parties' actions. An express contract has its terms stated orally or in writing, so it is the opposite case.

2. 2. An owner tells a broker, "If you bring me a buyer at $400,000, I will pay you a fee." The broker promises nothing. This agreement is:

   • A.A bilateral contract
   • B.An implied contract
   • C.A void agreement for lack of consideration
   • D.A unilateral contract

   Answer: D. Only the owner makes a promise, and the broker earns the fee only by performing, so the contract is unilateral. A bilateral contract needs a promise from each side.

3. 3. A buyer and seller each sign a written purchase agreement, one promising to buy and the other promising to sell. The contract is:

   • A.Bilateral and express
   • B.Unilateral and express
   • C.Bilateral and implied
   • D.Unilateral and executed

   Answer: A. Both parties exchanged promises, which makes it bilateral, and the terms are stated in writing, which makes it express. It is not implied because nothing had to be inferred from conduct.

4. 4. Which of the following is NOT required for a valid real estate sales contract?

   • A.Offer and acceptance
   • B.Consideration
   • C.Recording the contract
   • D.Legally competent parties

   Answer: C. Recording gives constructive notice to third parties but has no effect on whether the contract is valid between the parties. Competent parties, offer and acceptance, and consideration are all essential elements.

5. 5. A seller and buyer orally agree on the sale of a house for $250,000 and shake hands. The seller later refuses to sign anything. The agreement is:

   • A.Enforceable because both parties agreed on the price
   • B.Voidable by the buyer only
   • C.Unenforceable under the Statute of Frauds
   • D.Void for lack of consideration

   Answer: C. The Statute of Frauds requires contracts for the sale of real estate to be in writing to be enforced in court. It is not void for lack of consideration because the price was agreed.

6. 6. Under the Statute of Frauds, which lease generally must be in writing to be enforceable?

   • A.A lease longer than one year
   • B.Any lease that requires a security deposit
   • C.A month-to-month residential lease
   • D.A six-month apartment lease

   Answer: A. The Statute of Frauds covers real estate sales and leases for more than one year. A security deposit does not by itself trigger the writing requirement.

7. 7. A 17-year-old signs a contract to buy a condominium from an adult seller. Under general contract law, the contract is:

   • A.Fully enforceable by both parties
   • B.Void from the start
   • C.Voidable by the seller
   • D.Voidable by the minor

   Answer: D. A minor lacks full legal capacity, so the minor may disaffirm the contract while the adult remains bound. It is not void because the minor may choose to go through with it.

8. 8. In a real estate sales contract, consideration is best defined as:

   • A.The earnest money deposit only
   • B.Something of value exchanged by the parties
   • C.The commission paid to the broker
   • D.The deed the seller delivers to the buyer at closing

   Answer: B. Consideration is anything of legal value exchanged, and a promise to pay or convey is enough. Earnest money is common but is not required for a contract to be valid.

9. 9. Two parties sign a contract to sell a building that both know will house an illegal gambling operation. The contract is:

   • A.Valid until a court rules it unlawful
   • B.Void for lack of lawful purpose
   • C.Voidable by the buyer
   • D.Valid but unenforceable

   Answer: B. A contract must have a lawful purpose, so one formed for an illegal objective has no legal effect from the start. It is not merely voidable because neither party can choose to enforce it.

10. 10. A buyer and seller signed a valid purchase contract last week, and the closing is scheduled for next month. The contract is currently:

    • A.Executed
    • B.Void
    • C.Unilateral
    • D.Executory

    Answer: D. A contract is executory while obligations remain to be performed, as here before closing. It becomes executed only after both parties have fully performed.