California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

Which of the following is NOT a requirement for a valid real estate sales contract?

It must be witnessed
It must be in writing
It must have a lawful purpose
Consideration must be exchanged

The correct answer is: It must be witnessed

For a real estate sales contract to be valid, certain essential requirements must be met. One of these requirements is that the contract must be in writing, which helps clarify the terms and conditions agreed upon by the parties. Additionally, the contract must have a lawful purpose, ensuring that the agreement does not involve illegal activities. Furthermore, the exchange of consideration—something of value, typically money—is necessary to establish the contractual agreement. Witnessing is not a requirement for a real estate sales contract in California. While having witnesses can add an extra layer of formality and may be beneficial in certain situations, it is not a mandatory element for the legal validity of the contract. Hence, a contract can still be binding and enforceable without being witnessed, making it the correct choice in this context.