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.

Practice Questions

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:

A.Virginia Consumer Protection Act
B.Statute of Frauds
C.Parol Evidence Rule
D.Virginia Recording Act

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?

A.The buyer cannot withdraw; the offer is irrevocable for 72 hours
B.The buyer may withdraw the offer at any time before the seller's acceptance is communicated
C.The buyer may withdraw only if the seller agrees
D.The earnest money is forfeited if the offer is withdrawn

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:

A.An acceptance of the buyer's offer with minor modifications
B.A rejection of the original offer and a new offer by the seller
C.A binding contract if the buyer does not respond within 3 days
D.An extension of the original offer terms

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:

A.An appraisal contingency
B.A home inspection contingency
C.A financing contingency
D.A title contingency

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:

A.Specific performance
B.Compensatory damages
C.Liquidated damages
D.Rescission

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?

A.A current property tax payment
B.An unresolved mechanic's lien from a prior contractor
C.A recorded deed of trust being paid on schedule
D.A valid easement disclosed in the listing

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:

A.Witnessed by two parties
B.In writing and signed by the party to be charged
C.Notarized and recorded
D.Approved by a Virginia attorney

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:

A.The buyer submits the offer
B.The seller signs the offer
C.The acceptance is communicated to the offeror
D.The earnest money is deposited

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:

A.The closing date may be extended with verbal agreement
B.Deadlines in the contract are strict and failure to perform on time is a material breach
C.The contract will automatically terminate if not closed within 90 days
D.The buyer has a 3-day right of rescission

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:

A.The seller's attorney
B.The Virginia Real Estate Board
C.The listing broker or settlement agent in escrow
D.The buyer's lender

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?

A.The buyer forfeits the earnest money automatically
B.The seller may sue the buyer for specific performance
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