Contracts
In Tennessee, a 'purchase and sale agreement' is considered an 'executory contract' until:
AThe buyer pays the earnest money
BAll conditions are met and the transaction closes✓ Correct
CThe mortgage is approved
DThe property inspection is completed
Explanation
A purchase and sale agreement is executory from signing until closing — the point at which all obligations have been fully performed by both parties (closing is the point of execution).
Related Tennessee Contracts Questions
- A Tennessee seller who grants the buyer a home warranty as part of the sale is typically providing coverage for:
- Under Tennessee law, a real estate listing agreement that does not specify an expiration date is:
- An 'assignment' clause in a purchase contract determines whether:
- Which of the following best describes the legal concept of 'time is of the essence' in a real estate contract?
- A lease with an option to purchase gives the tenant the right to:
- If a buyer's financing contingency is not met by the specified deadline and the buyer does not notify the seller, what is the likely result?
- In Tennessee, a listing broker who procures a ready, willing, and able buyer under the terms of the listing agreement has typically earned their commission:
- A Tennessee sales contract requires the buyer to obtain 'satisfactory' financing. This type of contingency is considered:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →