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Real Estate Associates Test > ***Ch 14. Real estate contracts*** > Flashcards

***Ch 14. Real estate contracts*** Flashcards

1
Q

A contract in which both parties enter into mutual promises

  • cannot sue for breaking a promise of a gift
  • sale and purchase contract
A

Bilateral Contract

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2
Q

Having the mental and age capacity to enter into a contract

A

Competent

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3
Q

An agreement between two or more competent parties, supported by consideration, to do, or not to do, a certain legal act

A

Contract

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4
Q

Listing agreement whereby the seller may find a buyer without owing a commission, although the seller agrees not to list the property with any additional brokers

A

Exclusive Agency Listing

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5
Q

Listing agreement whereby the broker earns a commission no matter who procures the buyer

A

Exclusive Right of Sale

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6
Q

A specific dollar amount of damages to be paid by a breaching party as specified in the contract

A

Liquidated Damages

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7
Q

An agreement and understanding between the parties concerning the intent of their contractual terms

A

Meeting of the Minds

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8
Q

A listing agreement whereby the broker keeps any funds over a definite net amount to be received by the seller

*legal in florida

A

Net Listing

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9
Q

Substitution of a contract and a party for another contract and another party

*seller agrees to only sue the second buyer if they ever go to court

A

Novation

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10
Q

Listing agreement whereby the seller promises to pay a broker a commission if that broker procures a buyer. The seller may sell the property itself without owing a commission, and the seller may enter an open listing with several different brokers simultaneously.

A

Open Listing

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11
Q

unilateral agreement, must be in writing, one party agrees not to sell the property to anyone else even though the opposite party is under no obligation to purchase the property

A

Option Contract

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12
Q

Body of law that states that certain types of contracts must be in writing to be enforceable

A

Statute of Frauds

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13
Q

Establishes time limits for filing litigation

A

Statute of Limitations

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14
Q

contract is one that has not met the requirements of the statute of frauds or has gone beyond the legal time limit provided by the statute of limitations.

A

Unenforceable contract

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15
Q

A contract whereby only one party undertakes a promise or obligation

*option contract

A

Unilateral Contract

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16
Q

When a contract satisfies all legal requirements

*does not have to be in writing

A

Valid

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17
Q

A contract the law will not recognize under any circumstances

A

Void

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18
Q

Contract involving a minor or other incompetent party wherein the incompetent part has a choice to enforce or rescind the contract

A

Voidable

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19
Q

What are the 3 types of contracts real estate licensees are permitted to prepare?

A

Sale and purchase
Listing Agreement
Option Contract

20
Q

The contract between a buyer and a seller of real property

*has to be in writing to be valid

A

Sale and purchase

21
Q

An employment agreement between a broker and a seller (principal) to perform a real estate service

A

Listing Agreement

22
Q

A contract in which a potential seller gives an OPTION to a potential buyer granting the right to purchase property upon terms and conditions stated in the option

A

Option Contract

23
Q

Examples of types of contracts that must be in writing in order to be enforceable are

A

Sale and Purchase Contracts

Option Contracts

Leases for more than one year

24
Q

What are the exceptions where statue of frauds does not apply

A

Partial performance doctrine

Full performance doctrine

25
Q

In a Sale and Purchase Contract, if the Buyer has paid part of the purchase price to the Seller, and has either (1) taken possession of the premises, or (2) commenced repairs or improvements

A

Partial performance doctrine

26
Q

in a Sale and Purchase Contract, if the parties go to closing, the purchase price is paid and title is conveyed to the Buyer,then the Statute of Frauds does not apply and cannot be raised as a defense after the sale.

A

full performance doctrine

27
Q

What is the oral and written time periods for statue of limitations

A

oral 4 yrs

written 5yrs

28
Q

what are the 4 essential elements to a contract

A

Contractual capacity of the parties (competency)

Offer and Acceptance
(meeting of the minds)

Legality of Object

Consideration

29
Q

a beneficial interest in real estate that implies legal title at a later date

(under contract but doesn’t own yet)

A

Equitable title

30
Q

exists when a party owns real estate

A

Actual title

31
Q

exists when all of the details are understood by the parties, whether oral or in writing

A

expressed contract

32
Q

exists when some of the terms and conditions are not stated but rather are inferred by the nature of the transaction or the conduct of the parties

A

implied contract

33
Q

Anytime there is something remaining to be done under a contract, its status is considered to be

A

executory

34
Q

one in which all the terms and conditions agreed upon have been completed

A

executed contract

35
Q

7 ways to terminate and offer

A 
Acceptance
Withdrawal
Rejection
Counteroffer
Lapse of time
Destruction of subject
Death or Insanity
36
Q

4 ways to terminate a contract

A

Performance
Mutual Rescission
Destruction of subject
Breach

37
Q

After a breach of contract If a party does not want money damages, they have the option to seek what through judicial proceedings

A

Specific Performance

38
Q

transferring legal rights under a contract

*this does not receive the person that transferred of any responsibility in the contract

A

Assignment of contract

39
Q

The contract between a seller of real property and the broker

*can be oral or written

A

Listing Agreement

40
Q

a copy of the listing contract (if written) must be furnished to the principal within how many hours after the written agreement is obtained.

A

24 hrs

41
Q

A licensee is considered to be the what of the sale when they have set into motion events that were ultimately responsible for the formation of a contract.

A

Procuring cause

42
Q

Federal law requires a disclosure about lead based paint if the subject property was built before what year

A

1978

43
Q

Failure to timely provide the homeowner’s association disclosure will give the buyer a how many business days right of rescission that will begin once the disclosure is provided.

A

3 BUSINESS days

44
Q

in an optional contract in order for there to be a binding contractual agreement, the Optionee is required to give what, which is considered to be more than a promise, and is often in the form of money.

A

valuable consideration

45
Q

A seller can sell property in what condition. But, if the seller is aware of any material defects, those defects must be disclosed.

A

As is

46
Q

Sellers of real estate are required to disclose all known property defects that are not openly visible to potential buyers as soon as possible because of what court case?

A

Johnson v. Davis

the seller was found guilty of concealing defects and the Court rescinded the sales contract

Real Estate Associates Test (13 decks)

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