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Real estate glossaryNational exam concept

Executory contract

An executory contract is a valid agreement under which one or more parties still have material performance due, such as a purchase contract between acceptance and closing.

Exam area: Contracts

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What does “executory contract” mean in real estate?

An executory contract is a valid agreement under which one or more parties still have material performance due, such as a purchase contract between acceptance and closing.

How is “executory contract” different from the closest wrong answer?

Executory means performance remains. Executed means all required performance is complete.

What is the Georgia-specific rule?

Most Georgia purchase agreements are executory during due diligence, financing, title work, and the period before the attorney closing.

Worked exam example

Scenario

The parties have signed, but the buyer must obtain financing and pay while the seller must deliver marketable title at closing.

What is the most common exam trap?

Trap correction

Executory does not mean defective, uncertain, or unenforceable. It describes performance status only.

Original exam check

Apply the definition

A Georgia buyer and seller have a binding purchase agreement. The buyer is in the due diligence period, and the attorney closing is three weeks away. What is the contract's status?

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Recommended next complete lesson

Continue with Contracts complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.