PSI Oklahoma Real Estate Practice Test

When a real estate sales contract is agreed upon and signed, what is the transaction considered?

1. An acceptance.

2. A rejection.

3. An offer.

4. A closing.

The correct answer is: An offer.

When a real estate sales contract is agreed upon and signed, the transaction is best considered an offer. This is because, in the context of contracts, an offer refers to a proposal made by one party to another intending to create a legally binding agreement upon acceptance. The signed contract indicates that both parties have agreed to the terms laid out, effectively solidifying the offer into a legally binding contract. It is key to note that once the offer is accepted—meaning all parties have signed the document—this does not mean it remains an offer; it becomes a contract. This differentiation is important for understanding the stages of a real estate transaction and the significance of the signed agreement, which must include mutual consent to all terms for the sale to proceed legally. The other options do not align with this definition. Acceptance would imply a response to an offer, which occurs after a contract is signed. A rejection refers to when an offer is not accepted. Closing refers to the finalization of a real estate transaction, where financial and legal steps are completed to transfer ownership, which comes after a contract is in place.