Contracts
Contracts are the most heavily weighted national topic. You must know the elements of a valid contract, the statute of frauds, offer and acceptance, and remedies for breach.
Formation and Validity
A valid contract needs competent parties, mutual assent, consideration, a lawful object, and, for real estate, a writing under the statute of frauds. Acceptance must mirror the offer; any change is a counteroffer that terminates the original. Contracts can be valid, void, voidable, or unenforceable. The parol evidence rule limits changing a written contract with prior oral statements.
Real Estate Contracts and Remedies
Listing agreements, buyer-representation agreements, purchase agreements, and leases are common. Earnest money evidences the buyer's good faith. Contingencies (financing, inspection, appraisal) let a party withdraw if a condition fails. If a buyer defaults, the seller may retain earnest money or seek damages; if a seller defaults, the buyer may seek specific performance or damages. Assignment and novation transfer contract rights or substitute parties.