Chapter 11 - Real Estate Contracts 12%

Question 1

What is Offer and Acceptance

Answer 1

A valid contract must have an offer and acceptance, agreement, or meeting of the minds. This happens when an offer made by one party is accepted by the other party, and communicated to all parties

Question 2

What requires a contract for the transfer of a right or interest in land to be in writing in order to be enforceable

Answer 2

Statue o Fraud - the prevention in fraud in the sell of real property

Question 3

The sale, transfer, or subrogation of rights in a contract is called

Answer 3

An Assignment

Question 4

This exists when some or all of the terms and conditions can be assumed by the nature of the agreement of the words and actions of the parties

Answer 4

An implied contract

Question 5

The type of contract that is inherently unenforceable

Answer 5

Void Contract - it cannot be performed under the law.

Question 6

What are the three remedies for a breach of contract

Answer 6

1. Suit for cancellation (rescission)
2. Suit for specific performance
3. Suit for damages

Question 7

The party who is not in default asks the court to require the other party to perform as agreed in the contract.

Answer 7

Suit for specific performance - is usually a remedy taken by the buyer

Question 8

What are two types of damages

Answer 8

liquidated damages and unliquidated damages

Question 9

These type of damages are specified and agreed upon contract

Answer 9

liquidated damages - parties agree to the penalty to be imposed in the event of a breach by either party. This usually involves the seller retaining the deposition in the event of a buyer default. Can also happen in leases.

Question 9

These type of damages are specified and agreed upon contract

Answer 9

liquidated damages - parties agree to the penalty to be imposed in the event of a breach by either party. This usually involves the seller retaining the deposition in the event of a buyer default. Can also happen in leases.

Question 10

Does the use of an As-is provision in a contract relieve a seller of the responsibility of disclosing any material defects of a property?

Answer 10

No

Question 11

What is an option contract

Answer 11

is a right to buy a property during a specified period of time at a specified price. It is not an obligation to buy as in a sales contract.

Question 12

What is a contract for deed also known as

Answer 12

an agreement for a deed, land contract, conditional sales contract, or installment sales contract

Question 13

What is a contract for a deed?

Answer 13

an agreement between a property owner and potential buyer in which the owner agrees to deliver a deep to the purchase after certain conditions have been met