In real estate, which phase describes a contract where terms remain to be performed between signing and closing?

• A. Executed contract
• B. Executory contract
• C. Formal contract
• D. Void contract

Answer: (B)

Executory status describes a contract with terms remaining to be performed between signing and closing. After the parties sign, there are still obligations to complete—financing arrangements, title clearance, inspections, contingencies, and other duties that must be fulfilled before the transaction closes. Until those tasks are completed (or the contingencies are waived or failed), the contract is in an executory phase because performance is still pending.

An executed contract, by contrast, has all promises fully performed; there’s no remaining obligation. A void contract is not legally enforceable from the start due to illegality or lack of essential elements. A formal contract refers to the form or method of creation, not whether performance is still due.