Chapter 11 Flashcards
Agreement of Sale
A written agreement in which the buyer agrees to buy certain realty and the seller agrees to sell upon terms and conditions set forth therein. Title remains with the seller until terms and conditions are fulfilled; buyer has equitable title; there are two closings.
Assignment
The method or manner by which a right or contract is transferred from one person to another.
Cooperating Broker
A broker who joins with another broker in the sale of real property; usually, one who represents the buyer of property listed with another broker; the selling broker.
Counter Offer
An offer in response to the original offer, can be from a seller back to a buyer, or a buyer in response to the sellers response.
Earnest Money
Initial payment made by a purchaser of real estate as evidence of good faith.
Executory Contract
A contract not yet fully performed; e.g. DROA
Liquidated Damages
An amount pre-determined by the parties to an agreement that will be forfeited as compensation for breach of contract.
Marketable Title
Title free and clear of objectionable liens or encumbrances; title which is free from reasonable doubts or defects, which can be readily sold or mortgaged.
Misrepresentation
A false statement of a material fact made with the intent to induce sone action from another party.
Option
A right given for consideration to purchase or lease a property upon specified terms within a specified time. Purchaser is the optionee.
Purchase Contract
The Hawaii Association of Realtors standard form purchase agreement.
Elements needed: offer and acceptance, consideration, contractual ability, legal purpose
Not needed:
Description and ?
Signatures?
Rescission
The annulling, revocation, or repealing of a contract by mutual consent of the parties, or for cause by either party to the contract, and returning the parties to their original position (the status quo).
Rider
An addition, addendum or endorsement annexed to a document; it should be signed or initialed.
Specific Performance
A remedy that the court will grant in certain cases, compelling the defendant to perform or carry out the terms of a valid, existing agreement or contract.
Statute of Frauds
State law requires among other things that certain contracts relating to real estate must be in writing to be enforceable at law.
