Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real estate > chapter 11 > Flashcards

chapter 11 Flashcards

1
Q

what is valid contract?

A

a contract must be

  1. voluntary
  2. an agreement
  3. made by legally competent parties
  4. supported by legal consideration
  5. must be supported by something of value have to do with legal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is express contract?

A

exists when parties state the terms and show their intentions words.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is implied contract?

A

agreement of the parties is demonstrated by their acts and conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is bilateral for a contract?

A

contract Bi means two- must have two promises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is unilateral for a contract?

A

one person- has only one promise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is statue frauds?

A

certain types of contracts (including those for the sale of real property) must be in writing to be enforceable in a court of law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is bilateral contract?

A

when both parties promise to do something one promise is given in exchange for another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is unilateral contract?

A

one party makes a promise to induce a second party to do something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is executed contract?

A

is which all parties have fulfilled their promises: the contract has been performed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is executory contract?

A

exists when one or both parries still have an act to perform

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are the element of a contract?

A
  1. off and acceptance
  2. consideration
  3. legally competent parties
  4. consent
  5. legal purpose
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is happens if there is counter offer to the original contract?

A

A counter is new offer, it void the original offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is consideration?

A

is something of legal value offered by one party and accepted by another as an inducement to perform refrain from perming same act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is reality of consent?

A

usher the doctrine of reality of consent, a contract must be entered into as the free and voluntary act of each party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is legal purpose?

A

a contract must be legal purpose

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is legally comet ant parties?

A

all parties to the contract must have legal capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is unenforceable contract?

A

may seem not he surface to be valid; however neither can use each other to force performance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is performance of a contract?

A

each party has certain rights and duties to fulfill

many contracts call for specific time by when agree on of act must be completely performed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is time of the essence?

A

it the means that the contract must be performed within the time limit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is assignment?

A

is transfer of rights or duties under a contract. rights may be assigned to a third party unless the contract forbids it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is novation?

A

substitution of new contract for existing contract. the new agreement may be between same parities or a new party may be substituted for either

22
Q

what is beach of contract?

A

is violation of any of the terms or conditions of a contract without legal excuse

23
Q

what is buyer remedies for breach of contract?

A
  1. suite of specific performance
  2. suit of damages
  3. rescind contract
24
Q

what is the sellers remedies for breach of contract?

A
  1. suite of specific performance
  2. suit of damages
  3. declare contract forfeited
25
Q

what are the other reason for termination?

A
  1. substantial performance
  2. mutual agreement
  3. operation of law
  4. rescission
26
Q

what did IL supreme court decide in the case Chicago bar ass vs quinlan and tyson inc.?

A

the sort ruled that licensee are authorized only to fill in the black on printed form contract agh are customarily used in real estate contracts

27
Q

what is the listing and buyer agreement?

A

listing and buyer agreement are employment contracts.

28
Q

what is listing agreement?

A

establishes the right and obligation of the spinor as agent and the seller as principal

29
Q

what is the buyer agency agreement?

A

establishes the relationship between a buyer as principal and sponsor as agent.

30
Q

why should “offer to purchase” in contract?

What should be used?

A

a licensee shouldn’t use form titled “offer to purchase” of the form is intended to be come a binding real setae contract.
IL law requires that sale contract indicate at the top “real estate sale contract” in bold.

31
Q

what should happen if any fixtures are in questioned?

A

they are in listed in the sale contract. this can help to eliminate possible arguments at the time of the final walk through.

32
Q

what is earnest money deposits?

A

the earnest money deposit is evidence of the buyer intention to carry out the terms of the contract in good faith

33
Q

where is earnest money held?

A

sponsor must establish money funds in one account. the escrow accounts non interest bearing, unless both parities agree in writing.

34
Q

What happen if there is interest on a escrow account?

A

it paid on the deposit, the disposition of any accrued interest must designated by the parties in writing and separate interest bearing account must be set up for that deposit.

35
Q

What should each sponsor have for the escrow account?

A

each sponsor must maintain a complete journal and ledger of all earnest money and notify IDFPR of the name of the federally insured institution where the money is deposited.

36
Q

when should escrow money should be deposit?

A

all funds must be deposited to that account no later then the end of the next business day following the acceptance of the real estate contract or lease agreement.

37
Q

If the IDFPR inspects the escrow account, how much time produce the records?

A

both the account itself and sponsor records are subjected to inspection at any time sponsor records need produced within 24 hours up official request.

38
Q

what is commingling?

A

is mixing their own funds with funds in special escrow accounts except for the purpose of maintaining a minimum running balance.

39
Q

what is conversion?

A

using escrow funds for personal use

40
Q

what is equitable title?

A

when buyer signs a contract to purchase real estate, the buyer doesn’t receive legal title to the land. legal title transfers only on delivery and acceptance of deed.

41
Q

what is destructive of the premiss?

A

under common law of contract, the buyer always bore the risk of in the event the property as damaged or destroyed prior closing

42
Q

what is uniform vendor and purchase risk act?

A

seller bear nay loss that occurs before the title passes or the buyer take possession. as a practical matter, the seller should be certain the property is fully insured for sale price value up the closing is completed and possession has been given

43
Q

what is liquidate damages?

A

a void a lawsuit if one party breach the contract, the parties may agree on certain amount money that compensate the non breaching party. the money is called liquidated damages.

44
Q

what is contingencies?

A

additional conductions that must be satisfied before a sales contact is fully enforceable are called contingencies

45
Q

what is amendments and addendum’s?

A

is provision added to an existing contract without altering the content of the original
it any provision added to an existing contact without altering the content of the original

46
Q

what is options?

A

is contract by which gives an optionee the right to buy or lease the owner’s property at a fixed price within a certain period of time

47
Q

what is the option agreement?

A

requires that the option is not exercised within the time specified time specified time, specified elects to execute the option’s . if the option is not exercised within the time specified time specified in the contract, both optionor’s obligation and the optionee’s right expire.

48
Q

what is land contract?

A

real state sale can be made by a land contract also called a contract for deed, and installed contract, or article of agreement for warranty deed. under a typical land contract the seller retains legal title. the buyer take possession and get equitable title to the property

49
Q

what is does the buyer agree to under a land contract?

A

to give the seller a down payment and pay regular monthly payment and pay regular monthly installments of principal and interest over number of years. the buyer also agrees to pay real estate taxes, insurance premiums, repairs and up keep on the property.

50
Q

what is installment contract in IL?

A

when creative seller financing is needed to consummate used a sale. Real estate licensees may suggest an installment contract to assist buyers who are have trouble getting a loan or sellers who have a hard to sell proper who wish to retain ties to their property, while licensees may assist in negotiating beast terms, In IL the actual of agreement must be drawn up by attorney

Real estate (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions