Real Estate Express Course Practice Exam

When an exclusive right to sell has been signed, what describes the type and status of this contract?

Bilateral executory. Unilateral executed. Bilateral executed. Unilateral executory.

Correct Answer:

Bilateral executory.

Explanation:

The key idea here is how listing contracts are categorized by promises and performance status. An exclusive right to sell creates mutual obligations: the broker promises to actively market the property and work to secure a buyer, while the seller promises to pay the agreed commission if a sale occurs during the term. Since both sides have binding promises and performance has not yet been completed (the sale may still happen, or may be pending), this is a bilateral executory contract. It would only be executed if all promises were fulfilled (e.g., after the sale closes and commissions are paid); it isn’t unilateral because both parties have duties, and it isn’t executed because performance is still pending.

Access more questions from this quiz

Continue to Real Estate Express Course Practice Exam for more practice questions and the full quiz experience.

Access More Questions