Title: Describe contracts used in the real estate business.
Course: Real Estate (12154) > Section: Understanding Contracts

Description should include the following types of contracts and definitions of each in real estate:

- Listing agreements
- Client representation agreement, including key elements of provisions of buyer and/or tenant agreement
- Buyer disclosure (Summary of Residential Property Disclosure Act)
- Offer/purchase agreement
- Counter offers/multiple counter offers/escalation clauses
- Lease
- Options
- Escrow agreements

Description should also include a discussion of the role of e-signatures in contracts:

- Property management agreements
- Owner financing contracts
- Real estate sales

DPOR correlations: 18VAC135-20-400. 4 (Contracts); 18VAC135-20-400.14 (Real estate financing); 18VAC135-20-400. 15 (Brokerage and agency contract responsibilities)

Process/Skill Questions:

- When are client representation agreements used?
- What is an exclusive buyer/broker agreement?
- Why would one sign a client representation agreement?
- What are some essential elements of a buyer/broker agreement?
- What are three types of buyer/broker agreements?
- What is a purchase/sales agreement and when is it used?
- What is an option agreement and when is it used?
- What is an installment agreement and when is it used?
- What rights are transferred by a lease?
- How do e-signatures work for real estate agents? What e-signature software options exist?