Washington State Real Estate Practice Exam 2026 – All-in-One Guide to Master Your Real Estate License!

The term "Agreement of Sale" refers specifically to a written agreement between a buyer and a seller in which both parties agree on the terms and conditions of the sale of a property. This document outlines critical details such as the price, payment terms, and any contingencies that must be met for the transaction to proceed. Having this written agreement is essential in real estate transactions, as it provides legal protection for both parties and establishes their obligations.

In the context of real estate, this agreement serves as the backbone of the transaction, ensuring that both parties have a clear understanding of their rights and duties regarding the property involved. It is also important to note that this document sets the stage for further actions like transferring ownership and securing financing.

While the other options refer to different concepts in real estate or finance, they do not accurately describe what an Agreement of Sale is. For example, a mortgage with a changing interest rate relates to financing, a tax levied according to property value pertains to assessments, and express knowledge concerns legal awareness, none of which fall under the definition of an Agreement of Sale.