Contracts & Closings: Real Estate Broker Exam Prep

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Offer and acceptance (mutual assent), consideration, legally competent parties, and lawful purpose. Without all four, the contract is void or voidable.

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Real estate contracts must be in writing and signed by the party to be charged (the party against whom enforcement is sought) to be enforceable.

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Mutual assent, also called a 'meeting of the minds.' The contract becomes binding at the moment acceptance is communicated to the offeror.

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A void contract has no legal effect and cannot be enforced by either party. A voidable contract is valid but may be disaffirmed by one party (e.g., a minor or someone under duress).

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Consideration is anything of legal value exchanged by the parties, such as money, a promise, goods, or services. It does not have to be monetary.