Chapter 1 Flashcards
Texas Real Estate License Act
1949 Texas Real Estate Commission assumed the administrative responsibilities.
1.allows for real estate licensees to fill in the blanks of contracts between buyers and sellers for a fee.
- Regulates a licensee when he or she is selling a house for a client.
The Texas Recording Acts
claim, interest, or ownership in real estate be placed in the public records in the county where the property is located
Elements of the Contracts
- agreement,
- consideration: is exchange of something for something else.
- competency,
- and legal objective A-C-C-L
What is the Texas Statute of Frauds?
contracts for the purchase of real estate, including mortgages and rental leases longer than one year, must be in writing to be enforceable.
Void
Should a contract fail any of the four essential elements, the contract becomes unenforceable, or void. Changes in law can also result in void contracts. A contract can become voidable by mistake or error, however, failure to read the contract does not make it voidable.
unenforceable contract
Unenforceable contracts are those that courts will not enforce. However, if the parties perform to all of the terms of the agreement, it will be a valid contract.
Express vs implied contracts
Express contracts are those that have been written down and are clear and definitive. Implied contracts lack these distinctions.
unilateral contracts
one side has all of the rights while the other has all of the obligations.
Novation
Novation is when the buyer and seller, after drafting an existing contract, end up making alterations to the deal that are so extensive that a new document is drafted. The parties remain the same, but the agreement is now different.
Rectifying performance failures, just name
- Open discussion,
- Mediation,
- Arbitration,
- Litigation,
Open discussion
when parties meet with the broker to discuss the situation.
Mediation
NON-binding discussion carried out by an impartial third party.
Arbitration
When a third party issues a BINDING ruling that prevents any further legal action.
Litigation
occurs when the parties take their grievances to court.
Reasonable Time
Reasonable time is the amount of time that is fairly necessary convenient to do what the contract requires to be done, as soon as circumstances permit.
Time is of the essence
means there is a finite time frame for a contract to be executed. Failure to deliver in these circumstances constitutes breach of contract.
Disclosures
Sellers must submit disclosures to buyers, giving them information about a property concerning things like asbestos, carbon monoxide, lead-based paint, mold, any endangered species of plants or animals, among others.
To close a contract, buyers and sellers must exchange all pertinent documents, including title, to make good on the deal.
“FOUR CORNERS DOCTRINE “
Judge will use to resolve disputed contracts.The interpretation of any disputed clause will be influenced by the document as a whole. No phrase will be lifted out of the document to determine the meaning, but will be looked at completely in its context.
Parol Evidence Rule
Prevents a party from presenting oral evidence that contradicts or adds to the written terms of contract.
Statute of Limitations
In Texas, written contracts and oral contracts have a limit of four (4) years.
This is a law stating the length of time that is allowed to bring a civil lawsuit. The time limits depend on a number of factors, including if a crime has been committed and the type of crime. As far as the breach of contract statute, the amount of time varies from state to state.
Discharge
When both parties wish to liberate themselves from a contract, that is known as discharge.
