Property OwnershipIntermediateDelaware Exam

What is an 'executed' contract in Delaware real estate?

AA contract that has been notarized
BA contract where all parties have signed and all obligations have been fully performedCorrect
CA contract signed by both parties
DSimply a contract that has already been formally terminated by mutual agreement of both parties

Why A contract where all parties have signed and all obligations have been fully performed Is Correct

Answer B: A contract where all parties have signed and all obligations have been fully performed

An 'executed' contract can mean (1) a contract that has been signed by all parties (contractual sense), or (2) a contract in which all obligations have been fully performed (performance sense). In real estate, closing typically 'executes' the purchase contract.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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