Alabama Real Estate Practice Exam

What must be included in a real estate sales contract?

1. Only the selling price and the closing date

2. The full names of any witnesses only

3. Who the parties are, the property description, the selling price, deposit amount, closing date, commission details, and signatures

4. The broker's personal guarantees

The correct answer is: Who the parties are, the property description, the selling price, deposit amount, closing date, commission details, and signatures

A real estate sales contract must include details such as the parties involved in the transaction, a thorough description of the property being sold, the agreed upon selling price, the deposit amount, the closing date, commission details, and the signatures of all parties. Option A is incorrect because a contract should include more than just the selling price and closing date to fully protect both parties involved. Option B is incorrect because the full names of the parties involved should be included, not just the names of any witnesses. Option D is incorrect because the broker's personal guarantees are not required to be included in a real estate sales contract and can be negotiated separately. It is important to include all necessary details in a contract to ensure a smooth and legally binding transaction for all parties involved.