Iowa Real Estate Practice Exam

What does a dual contract refer to in real estate sales?

1. Two properties sold by one buyer

2. Two accepted offers by different buyers

3. Two accepted offers by the same buyer on the same property

4. Two listings for the same property

The correct answer is: Two accepted offers by the same buyer on the same property

A dual contract refers specifically to the scenario where a single buyer enters into multiple accepted offers on the same property under different terms. This situation can arise when a buyer wants to keep their options open or negotiate under different conditions without officially committing to just one offer. In this context, the existence of two accepted offers can create complications, particularly around issues of disclosure, legal enforceability, and ethical considerations in real estate transactions. Disclosing one contract while there is another can result in misunderstandings or disputes, potentially violating real estate laws or ethical standards in certain jurisdictions. Considering the other options, one seller having multiple buyers (two properties sold by one buyer) would relate to marketing and transaction strategies but does not fit the definition of a dual contract. Two offers made by different buyers may suggest a common competitive scenario in the market but does not involve dual contracts as they are separate transactions. Finally, having two listings for the same property deals more with listing agreements and marketing rather than simultaneous offers or contracts from a single buyer.