Contracts
A Virginia real estate contract is said to be 'executory' when:
AThe property has closed
BThe contract has been signed but not yet fully performed by all parties✓ Correct
COne party has died
DThe contract has expired
Explanation
An executory contract is one that has been formed (signed) but not yet fully performed — it is in the period between contract formation and closing. Once all obligations are fulfilled, the contract is 'executed.'
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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