Georgia Real Estate Salesperson Practice Exam

What type of property transaction often requires a written contract?

1. Retail leases

2. Residential leases

3. Commercial leases

4. Sales of real estate

The correct answer is: Sales of real estate

In real estate transactions, written contracts are fundamental for establishing clear, enforceable agreements between parties. The sale of real estate typically involves significant financial commitments, detailed terms, and conditions that must be thoroughly outlined. This is to protect both the buyer and the seller by providing a record of the agreed-upon details, such as the purchase price, contingencies, and closing date. Having a written contract in the sale of real estate also ensures compliance with various legal requirements, such as the Statute of Frauds, which mandates that certain types of contracts, including those involving the transfer of real estate, must be in writing to be enforceable. This legal framework helps to mitigate disputes and misunderstandings that might arise in verbal agreements. Therefore, a written contract is not only advisable but often required to formalize the transaction and provide a clear framework for the parties involved.