1. Which is the most common and desirable way a real estate sales contract terminates?
Answer & explanation
Answer: C. Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.
property
real estate
Real estate is land plus everything permanently attached to it, whether by nature (trees, minerals) or by people (buildings, fences, driveways). It covers the surface, the area below it, and the airspace above it, within legal limits. Real estate refers to the physical property itself, while real property adds the legal rights of ownership, often called the bundle of rights. Anything movable and not attached is personal property.
- Exam tip
- Exams like to separate real estate (the physical land and attachments) from real property (the physical land plus the bundle of legal rights). Watch for questions that test whether an item is attached and therefore part of the real estate.
- Example
- A house, its built-in furnace, and the oak tree in the yard are all real estate. The patio furniture the owner can pick up and carry away is personal property.
Related terms & state variants
Sources
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Last verified: 2026-10-23