CinnaPrep · Real Estate Exam Prep

Real Estate Contracts on the Exam: Valid, Void, Voidable

Contract questions test a handful of doctrines over and over.

The essentials of a valid contract

Competent parties, offer and acceptance, consideration, lawful purpose — and for real estate, a signed writing (statute of frauds). Earnest money is NOT required; the mutual promises are the consideration.

Valid / void / voidable / unenforceable

Illegal purpose → void. A minor or fraud victim → voidable at their option. An oral land sale → unenforceable (valid between honest parties, but courts won't help). This classification question appears on nearly every form.

Counteroffers kill offers

A counteroffer rejects the original offer permanently — the seller can't later "accept" the original. The offeror may revoke any time before acceptance is communicated.

Remedies

Buyer defaults → seller may keep earnest money as liquidated damages (if the contract says so). Seller defaults → buyer's strongest remedy is specific performance, because land is legally unique.

CinnaPrep's contracts category has 100+ questions with rationales, plus compare cards for the pairs everyone mixes up (assignment vs novation, addendum vs amendment).
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