A purchase agreement in Alabama that is contingent on the sale of the buyer's current home is an example of a:
Why Contingency clause Is Correct
Answer B: Contingency clause
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
People Also Study
Related Alabama Questions
- An Alabama purchase contract that is subject to the buyer obtaining a satisfactory home inspection within 14 days is an example of a:Contracts
- An Alabama purchase agreement includes a financing contingency. If the buyer cannot obtain financing, the buyer may:Contracts
- An Alabama purchase contract contains a financing contingency. If the buyer cannot obtain financing, the buyer may:Contracts
- A buyer in Alabama includes a financing contingency in their purchase contract. If the buyer cannot obtain financing, the buyer is entitled to:Contracts
- A buyer makes a down payment of $45,000 on a $300,000 home in Alabama. What is the LTV ratio?Real Estate Math
- A seller accepts an offer of $310,000 on their home. The seller's existing mortgage balance is $195,000. Closing costs are $8,000, and the real estate commission is 6%. How much does the seller net from the sale?Real Estate Math
- An Alabama property owner who rents out a single-family home without using a real estate agent is exempt from the Fair Housing Act ONLY if they:Fair Housing
- An Alabama real estate broker must keep a copy of every listing and purchase contract for a minimum of:Alabama License Law
Key Terms to Know
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →