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National curriculum lesson 87 · Contracts

Purchase Agreements and Addenda

A purchase agreement should identify the parties and property, price and earnest money, financing, included and excluded items, title and closing terms, possession, contingencies, disclosures, risk allocation, default remedies, notices, dates, and signatures. An addendum supplies additional terms when the contract is formed; an amendment changes an existing agreement with required consent.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

A purchase agreement should identify the parties and property, price and earnest money, financing, included and excluded items, title and closing terms, possession, contingencies, disclosures, risk allocation, default remedies, notices, dates, and signatures. An addendum supplies additional terms when the contract is formed; an amendment changes an existing agreement with required consent.
Official syllabus mapping for Purchase Agreements and Addenda
Roadmap lesson87 of 500
Official syllabus topicPurchase Agreements and Addenda
Official PSI areaContracts
Published area weight19% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Essential transaction terms

Identity, legal property description, consideration, and mutual obligations must be definite enough for the intended agreement. Dates and delivery rules turn expectations into measurable duties.

Contingencies

Financing, appraisal, inspection, due diligence, title, sale-of-other-property, or other contingencies should state deadline, standard, notice method, and consequence.

Closing and risk allocation

The contract addresses prorations, costs, title evidence, casualty risk, possession, deed form, and documents required at closing.

Addenda and amendments

An addendum is incorporated additional content. An amendment modifies the existing agreement and ordinarily requires assent from affected parties; a counteroffer occurs before formation.

Decision rule

For every clause, identify who must do what, by when, using which notice, and what happens if it does not occur.

Georgia-specific distinction

Georgia brokerage transactions commonly use detailed association forms, but the signed documents control. A Georgia licensee must present offers promptly, avoid unauthorized legal drafting, and use written amendments for negotiated changes.

Worked example

Scenario. After binding agreement, Buyer and Seller agree to move closing by seven days.

Reason it through. A contract already exists and one of its terms is changing by mutual consent.

Answer. Document the change in a signed amendment, not a counteroffer.

Common exam traps

  • Using an amendment before contract formation
  • Leaving contingency consequences unstated
  • Relying on oral side agreements
  • Ignoring included fixtures and personal property

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

What document changes an existing purchase agreement?

  1. A. Amendment
  2. B. Counteroffer only
  3. C. Deed
  4. D. Appraisal
Show answer and explanation →

Answer: A. Amendment

An amendment changes the already formed contract with required assent.

Question 2

What should a contingency state?

  1. A. Only a topic
  2. B. Standard, deadline, notice, and consequence
  3. C. Only the broker's preference
  4. D. Only the purchase price
Show answer and explanation →

Answer: B. Standard, deadline, notice, and consequence

Operational detail determines how the contingency is satisfied, waived, extended, or terminated.

Question 3

Which item should the purchase agreement clarify?

  1. A. Included and excluded property
  2. B. Only zoning history
  3. C. Appraiser's license renewal
  4. D. County staffing
Show answer and explanation →

Answer: A. Included and excluded property

The agreement should settle which fixtures and personal items transfer.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Leases and Leasehold Estates. Continue to roadmap lesson 88 and build on this decision rule.

Return to the Contracts hub to see every official branch and the complete lesson sequence for this content area.

Purchase Agreements and Addenda questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Purchase Agreements and Addenda on the Georgia real estate exam?

Yes. It belongs to PSI's Contracts content area, which is 19% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Purchase Agreements and Addenda?

For every clause, identify who must do what, by when, using which notice, and what happens if it does not occur.

What Georgia-specific distinction should I remember?

Georgia brokerage transactions commonly use detailed association forms, but the signed documents control. A Georgia licensee must present offers promptly, avoid unauthorized legal drafting, and use written amendments for negotiated changes.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.