Chapter 11: Real Estate Contracts Flashcards
the transfer in writing of interest in a contract, mortgage, the lease, or other instrument
assignment
an agreement entered into by two or more legally competent parties that is binding on all parties
bilateral contract
violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due
breach of contract
those recognized by law as being able to contract with others; usually of legal age and sound mind
competent parties
- that received by the grantor in exchange for a deed 2. something of value that induces a person to enter into a contract, may be valuable (money) or good (love and affection)
consideration
certain happening without which a contract will not be valid
contingency
an agreement entered into b y two or more legally competent parties by the terms of which one or more of the parties for a consideration, undertakes to do or refrain from doing some legal act or acts
contract
a new offer made as a reply to an offer received
counteroffer
money deposited by a buyer that is applied to the purchase price if the sale is closed
earnest money
the interest held by a vendee under a land contract or an installment contract; the equitable right to obtain absolute ownership to property when legal title is held in another’s name
equitable title
protection for seller with a contract is subject to the sale of buyers present home
escape clause
- a contract in which all parties have fulfilled their promises and thus performed the contract 2. a signed contract
executed contract
a contract under which something remains to be done by one or more of the parties
executory contract
an oral or written contract in which the parties state the contracts terms and express their intentions in words
express contract
a contract under which the agreement of the parties is demonstrated by their acts and conduct
implied contract
agreement under which buyer pays in installments and waits for deed
land contract
sum agreed upon to serve as compensation if one party defaults
liquidated damages
substitution of a new contract for an existing one
novation
two essential components of a valid contract; a ‘meeting of the minds’ when all parties agree to exact terms
offer and acceptance
an agreement to keep open for a set period an offer to sell or purchase property
option
agreement that the written contract overrides spoken promises
parol evidence rule
return to status quo
rescission
court action asking that the parties complete the transaction as contracted
specific performance
the part of state law requiring certain instruments such as deed, real estate sales contracts, and certain leases to be in writing for them to be legally enforceable
statute of frauds
the law pertaining to the period of time within which certain actions can be brought into court
statute of limitations
a phrase in a contract that requires the performance of a certain act within a stated period of time
time is of the essence
a contract that seems on the surface to be valid, yet neither party can sue the other to force performance of it
unenforceable contract
an agreement that is binding on only one of the parties
unilateral contract
a contract that complies with all the essentials of a contract and is binding and enforceable on all parties to it
valid contract
a contract that seems to be valid on the surface buy may be rejected or dis-affirmed by one of the parties
voidable contract
a contract that has no legal force or effect because it does not meet the essential elements of a contract
void contract
