Executed contract
National Real Estate Exam glossary · Contracts
Definition
A contract in which all parties have fully performed their obligations—nothing remains to be done. It is distinct from an executory contract, in which performance is still outstanding. A signed purchase agreement awaiting closing is executory; once closing occurs it becomes executed.
Executed contract in plain English
An 'executed' contract is one that is completely DONE — every promise in it has been fully carried out and nobody owes anybody anything anymore. Don't be fooled by the word: in everyday life 'execute' can mean just to sign, but here it means finished, like a to-do list where every box is checked. In a home sale, once the buyer has paid and the seller has handed over the deed at closing, the contract is executed. Before that moment — signed but not yet completed — it's still 'executory' (the next term).
Learn these first
Related National Real Estate Exam terms
National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide