Georgia Real Estate Salesperson Practice Exam

Which type of contract can typically be assigned to another party?

1. A lease agreement

2. A contract for the sale of undeveloped land

3. A personal service contract

4. A mortgage agreement

The correct answer is: A contract for the sale of undeveloped land

The correct choice is the contract for the sale of undeveloped land. This type of contract is generally assignable, meaning that the original party can transfer their rights and obligations under the contract to another party without the need for modifying the contract. The ability to assign a contract is an important feature in real estate transactions, where flexibility can facilitate the transfer of interests and obligations in property dealings. In contrast, other contracts like lease agreements may contain specific provisions that limit the ability to assign the interest to another party without the landlord's consent, making it less straightforward. Personal service contracts tend to be tied to the specific skills or qualifications of the individual providing the service, which usually prohibits assignment because the original party's unique capabilities are integral to fulfilling the contract. Mortgage agreements, while they can be assigned in certain circumstances, often require lender approval due to the nature of the borrower-lender relationship and the terms of the loan. This distinction highlights the reasons why the contract for the sale of undeveloped land is the most typically assignable option among the choices provided.