Colorado Real Estate Broker Exam — All Questions

A buyer signs an offer to purchase a home. Until the seller accepts, the buyer's signed offer is best characterized as:

• a.A fully executed contract
• b.An implied contract
• c.An offer that can be revoked before acceptance is communicated✓
• d.A voidable contract that cannot be withdrawn

An offer is not a binding contract until the offeree accepts and that acceptance is communicated back to the offeror. Before acceptance, the offeror may generally revoke the offer. Once the seller signs and communicates acceptance, mutual assent exists and an executory contract is formed.

Under the Statute of Frauds, a contract for the sale of real estate is generally enforceable only if it is:

• a.In writing and signed by the party to be charged✓
• b.Notarized and recorded with the county
• c.Reviewed by an attorney for both parties
• d.Accompanied by a cash deposit of at least ten percent

The Statute of Frauds requires contracts for the sale of real property to be in writing and signed by the party against whom enforcement is sought. Recording and notarization affect notice and are not required to form a valid contract. There is no legal minimum deposit or mandatory attorney review to make a purchase contract enforceable.