Virginia Contracts
Practice Questions & Answers (2026)
Contract law questions on the Virginia real estate exam test both general contract principles and Virginia-specific transaction requirements. The Virginia Department of Professional and Occupational Regulation (DPOR) tests how Virginia contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Virginia law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong VA-specific timeframe or rule.
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Virginia Contracts — Practice Questions & Answers
113 questions on Contracts from the Virginia real estate question bank. First 10 are free — sign up to unlock all 113.
Q1. Under Virginia law, a real estate sales contract must be in writing to be enforceable due to the:
Explanation
The Statute of Frauds requires that contracts for the sale of real property be in writing and signed by the party to be charged in order to be enforceable.
Q2. A buyer makes an offer on a Virginia home. Before the seller responds, the buyer attempts to withdraw the offer. Which of the following is true?
Explanation
An offer may be revoked by the offeror at any time before acceptance is communicated to the offeror. Once the seller accepts and communicates acceptance, a binding contract is formed.
Q3. A counteroffer by a seller in Virginia legally acts as:
Explanation
A counteroffer legally terminates the original offer and constitutes a new offer by the seller. The buyer then becomes the offeree and may accept, reject, or counter again.
Q4. In Virginia, the standard contingency allowing a buyer to terminate a contract based on the results of a home inspection is typically referred to as:
Explanation
A home inspection contingency gives the buyer the right to have the property inspected and to negotiate repairs or terminate the contract if the inspection reveals unsatisfactory conditions.
Q5. If a buyer defaults on a Virginia real estate sales contract, the seller's remedy of keeping the earnest money deposit is known as:
Explanation
When the parties agree in advance that a specified sum (earnest money) will serve as damages upon default, this is called liquidated damages. The seller retains the deposit as the agreed-upon remedy.
Q6. A Virginia real estate contract requires the seller to provide clear title at closing. Which of the following would constitute a cloud on title?
Explanation
An unresolved mechanic's lien is a cloud on title because it creates doubt about the seller's ability to convey clear title. It must be resolved before or at closing.
Q7. Under the Virginia Statute of Frauds, a contract for the sale of real estate must be:
Explanation
Virginia's Statute of Frauds (Code § 11-2) requires contracts for the sale of real estate to be in writing and signed by the party against whom enforcement is sought.
Q8. In Virginia, a real estate sales contract becomes binding when:
Explanation
A contract is formed in Virginia when the seller's acceptance is communicated back to the buyer (offeror). Mere signing by the seller is not sufficient — communication of acceptance is required.
Q9. A Virginia real estate contract contains a 'time is of the essence' clause. This means:
Explanation
A 'time is of the essence' clause makes all deadlines in the contract strict. Failure to perform by the specified date constitutes a material breach, potentially forfeiting the buyer's earnest money deposit.
Q10. Under a Virginia real estate contract, earnest money is typically held by:
Explanation
In Virginia, earnest money (good faith deposit) is typically held in escrow by the listing broker or the settlement/escrow agent until closing or contract termination.
Q11. A Virginia buyer makes an offer with a financing contingency. The buyer's loan is denied. Which statement is most accurate?
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