Chapter 11 – Contracts for Real Estate Transactions Flashcards
What is a listing agreement?
A contract between an owner (vendor) and a real estate licensee whereby the licensee agrees to try to find a purchaser for the listed property in return for the vendor paying a stipulated amount of commission should the licensee be successful
What is the The Competition Act?
A federal statute designed to hold business actors accountable for misleading, deceptive, or anti-competitive practices
What is a contract of purchase and sale?
A contract of purchase or sale of land which contains the obligations of the vendor and purchaser with respect to the purchase and sale
What is a condition?
A fundamental term of a contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or specific performance
What is a warranty?
A subsidiary term of a contract, a breach of which allows the injured party to sue for damages but does not allow him or her to terminate the contract
What is a deposit?
An amount deposited with the brokerage by the purchaser when an offer to purchase is made
What is consideration?
The legal term for the reason which induces a party to enter into a contract. Consideration may be in the form of a right, interest, profit or benefit accruing to one party. It may also be in the form of an agreement not to do something, or loss suffered by the other
What are Warranties?
A warranty may be express or implied. In a suitable case, a court may employ a concept called a collateral warranty. An express warranty is one that is explicitly stated in the contract. For instance, a seller may expressly warrant in a contract that the roof is new or that the property does not contain urea formaldehyde insulation. Alternatively, a warranty may be implied, even though it is not explicitly stated in the contract. In rare cases, a court may imply a term that was not expressly set out, but which, in the court’s view, the parties must necessarily have intended to include.
What is a encumbrance?
An encumbrance is a judgment, mortgage, lien, Crown debt, or other claim to or on land less than a fee simple. An encumbrance functions to encumber (i.e., restrict or burden) title to the property against which it is registered
Who is a fiduciary?
A person who holds a position of trust with respect to someone else and is obliged, by virtue of the relationship of trust, to act solely in the other person’s benefit
What is a builders lien?
A claim registered against the title to land by a contractor, supplier of materials or workman with respect to work done or materials supplied to improve that land
What is a condition precedent?
Legal term for a “subject to” clause. In contract law, a condition precedent calls for the happening of some event or the performance of some act before the contract shall be binding upon the parties
What is a condition subsequent?
A condition or event, the occurrence of which will discharge the principal obligations of a party to the contract
How to remove a Subject Clause?
To remove a subject clause, a party must deliver written notice to every other party on or before the subject removal deadline. Verbal notice is not sufficient because the standard form contract requires, “written notice given by the benefiting party to the other party on or before the specified date
What is a True Conditions Precedent?
A true condition precedent is a condition that is wholly dependent on the will, or actions, of someone who is not a party to the contract
