New Jersey Real Estate Practice Exam Free Practice Question
What kind of contract describes the property, states the amount of commission to be paid, states an expiration date, and is signed by the seller?
Correct Answer: C
Rationale: A listing contract specifically describes the property, outlines the commission amount, sets an expiration date, and is signed by the seller, making it essential for real estate transactions.
Option A, an offer to purchase, is initiated by a buyer and does not include commission details or seller signatures. Option B, a contract to sell, typically formalizes the sale after an offer is accepted but lacks the specifics of commission and expiration. Option D, an option agreement, grants a buyer the right to purchase a property later but does not involve commission terms or a seller's signature.
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