In an executory real estate contract, what remains to be done by the parties?

• A. Something remains to be done by one or both parties.
• B. All obligations are already fulfilled and title has transferred.
• C. The contract is void and unenforceable.
• D. The buyer immediately receives legal title.

Answer: (A)

An executory real estate contract is one where performance hasn’t been completed yet. The defining idea is that there are still duties that must be carried out by one or both parties before the deal is finished. In practice, the buyer typically must provide the funds, and the seller must deliver something marketable—namely, a deed and title—at closing, along with any conditions like disclosures or financing contingencies. Until those steps are completed, there is still work to be done, which is why the contract remains executory.

If all obligations were fulfilled and title had already transferred, the contract would be executed, not executory. If the contract were void and unenforceable, it wouldn’t be operable at all. And title does not pass to the buyer immediately outside of closing; it transfers as part of the closing process.