Ch 8 Quiz Deeds, Contracts, and Leases Flashcards
“The cancellation of a contract by mutual agreement of the parties” is the definition of
Rescission
“The mental ability to understand the general effect of a transaction or document” is the definition of
competency
In a real estate transaction, who is the grantee?
buyer
In most appraisals for residential mortgage lending transactions, personal property items are
not included in the real property appraisal
If a seller defaults in a real estate contract, the buyer may take all of these actions EXCEPT
sue the seller for punitive damages. If a seller defaults, the buyer can rescind the contract and recover her earnest money deposit, file suit for specific performance, or sue the seller for compensatory damages. The buyer cannot sue the seller for punitive damages.
An offer may be __________at any time prior to the communication of acceptance of the offer.
revoked
Which would NOT be a required element of a valid deed?
must be recorded
The seller of a property is called the
grantor
If the parties to a contract agree to substitute a new contract for the old one, this is called
novation
A firm agreement to perform an act, refrain from acting or make a payment or delivery” is the definition of a(n)
promise
“A writ (order) issued by a court ordering someone to do something or prohibiting some act after a court hearing” is the definition of
injunction. An example of an injunction would be a court order prohibiting cutting a tree down.
“The act of transferring an interest in property or some right (such as contract benefits) to another” is the definition of
assignment
A(n) __________ contract is one that has not been fully performed or completed.
executory
A ________ contract is binding and enforceable on all parties.
valid
Breach of contract is also known as
default
“Failing to perform any term of a contract, written or oral, without a legitimate legal excuse” is the definition of
breach of contract
“A written, legal instrument that conveys an estate or interest in real property when it is executed and delivered” is the definition of a
deed
Standards Rule 1-5(a) of USPAP requires an appraiser to
analyze all current agreements of sale, options, or listings of the subject property
Which of these is NOT listed as a way that a contract can be terminated?
unilateral recission
All of the following are required ingredients of a valid contract EXCEPT
legal description
“Failing to perform any term of a contract, written or oral, without a legitimate legal excuse” is the definition of
breach of contract
Does a deed have to be recorded in order to be valid?
No. Deeds do not have to be recorded to be valid. However, it is in the best interests of the parties to record the deed in the public records.
The general rule of contracting with minors is that a contract with a minor is
voidable at the minor’s option
“A form of conveyance in which any interest the grantor possesses in the property described in the deed is conveyed to the grantee without warranty of title” is the definition of a ________________ deed.
quitclaim
“A manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer” is the definition of
acceptance. Acceptance of a contract means all of the terms of the offer must be accepted without change or condition.
A law changed after the contract was arranged but before the full performance of the contract. The law prohibits the transaction from taking place. This would be an example of
impossibility
If the seller’s name on the sales agreement is not the same as the current owner of public record, this could be a red flag that indicates that the current transaction
is a “flip”
Contracts are __________ that the law will enforce.
promises
A deed of trust is similar to a
mortgage
What type of lease requires the landlord to pay all of the property’s operating and fixed expenses?
gross lease
From the buyer’s standpoint, what is the weakest type of deed?
quitclaim deed
A(n) ___________ contract is one that has been fully performed.
executed
“The act of transferring an interest in property or some right (such as contract benefits) to another” is the definition of
assignment
Which is the best type of deed for the buyer?
warranty deed
Which kind of lease is commonly found in retail properties?
percentage
Acceptance may occur as
either an express act or an implied act
“A deed that conveys to the grantee title to the property free and clear of all encumbrances, except those specifically set forth in the document” is the definition of a _______________ deed.
warranty
The weakest form of deed is the ___________ deed.
quitclaim
In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.
trustee. Title is vested in a third party, the trustee, until the mortgage lien is satisfied.
If a buyer in a real estate transaction defaults on the contract, the seller may
rescind the contract, declare the contract forfeited and keep the earnest money, sue the buyer for specific performance
Breach of contract is also known as
default
A contract in which one party makes a promise in order to induce another party to do something is a(n) __________________ contract.
unilateral. A real estate option is a good example of a unilateral agreement.
The statute of limitations for suing for breach of an oral contract is __________ for written contracts.
shorter than
Contracts for the sale of real estate must be __________ in order to be enforceable.
in writing
“Damages awarded in a lawsuit as a punishment and example to others for malicious, evil or particularly fraudulent acts” is the definition of _____________ damages.
punitive
A lease that includes a specific level of rent that continues throughout the lease term is a(n)
flat rental lease
The statute of limitations for suing for breach of an oral contract is __________ for written contracts.
shorter than
A(n) ________ contract is one that has not been fully performed or completed.
executory
“A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating and fixed expenses” is a _____________ lease.
gross
Which type of deed is similar to a mortgage document?
trust deed. This is similar to a mortgage and is the method used in some states.
Every ____________ has a statute of frauds.
state
A(n) __________ contract is one that results from the failure of the parties to meet some legal requirement.
voidable
“A lease with a specific level of rent that continues throughout the lease term” is the definition of a(n) ______________ lease.
flat rental
