Maryland Home Improvement PSI Practice Exam

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Prepare for the Maryland Home Improvement Test. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel on your exam!

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A signed contract for the sale of a home will remain executory until what event occurs?

Acceptance of the buyer's offer is delivered to the buyer.
The transaction has closed.
All contingencies have been met.
The buyer takes possession.

The correct answer is: The transaction has closed.

A signed contract for the sale of a home remains executory until the transaction has closed, which is the point at which the legal title to the property is transferred from the seller to the buyer. Until closing, both parties still have outstanding obligations or conditions they must fulfill, such as financing arrangements and inspections. The executory phase means that the contract is active and requires both parties to complete their respective duties. Once the closing happens, and the transaction is finalized, the contract is termed "executed," meaning that the rights and responsibilities outlined in the agreement have been completed. At that moment, the buyer officially becomes the owner of the property, marking the end of the executory phase.