Free Pennsylvania Real Estate Practice Exam Practice Question
A buyer makes an offer on property and the seller accepts the buyer's offer. If the buyer does not offer an earnest money payment in the offer, the contract is:
Correct Answer: C
Rationale: In real estate transactions, a contract becomes valid when there is an offer, acceptance, and consideration, which can include earnest money. The absence of earnest money does not invalidate the contract; it simply means the buyer has not provided a financial commitment.
Option A (void) is incorrect because the contract is still legally binding despite the lack of earnest money. Option B (unilateral) is wrong as a bilateral contract exists between the buyer and seller, each promising to perform certain actions. Option D (unenforceable) is also incorrect; the contract can still be enforced as long as the essential elements of a contract are present.
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