Chapter 15 Flashcards
Property is going to stay in the condition that it is in
The as is clause
A replacement of real estate purchase agreement by the lender in the title companies closing documents
Abrogation
One of the parties give some indication by words or actions that they do not plan on moving forward with the contract
Anticipatory repudiation
When a buyer scientist of a contract, another party for various reasons
Assignment of a contract
One of the parties does not fulfill a term of the contract
Breach of contract
Create agency between the buyer and the brokerage
Buyer broker agency agreement
The buyer wants to buy the seller’s house contingent that certain things must happen
Contingency
Most common contingency in real estate is financing
Contingency clause
Moving a contract along to fulfillment
Discharge of contracts
Each party committing to fulfill the terms of the contract in those terms coming to fulfillment
Full performance
The parties want to perform, but due to unforeseen circumstances, they cannot perform their duties
Impossibility of performance
A contract between brokers and the agreement to compensate in the event, another broker brings a buyer
Multiple listing service
A contract between two parties and each party has the right and ability to enforce the terms of that contract on the other parties
Mutual enforcement
A replacement with a release
Novation
The remedies and rights are spelled out for both the buyer and the seller and can be enforced if needed
Operation of law
The contract comes to completion and is fulfilled
Performance
Has the authority to act on someone else’s behalf
Power of attorney
Contract between the buyer and seller
Real estate purchase contract
Putting things back the way they were before entered into a contract
Rescission
For one party to sue another party in order to have the court to enforce the contract
Specific performance
Indicates that every single real estate transaction has to be in writing to be enforceable in the court of law
Statue of frauds
The contract that creates agency with the sellers
The exclusive right to sell
When competing contracts, make sure your broker approves of any additional verbiage
Agents rule in preparing contracts
These in all other employment agreements belong to the broker
Buyer broker agency agreement and the exclusive right to sell
What are the consequences of a breach of contract?
Monetary damages
Specific performance
Recession
Liquidated damages
If the buyer cancels before this date, the earnest money goes back to the buyer or after this date, then the money goes back to the seller
Earnest money goes to
An appraisal
Ex of contingency
When a client refuses to sign a repair things that was agreed to in the contract
Ex of anticipatory repudiation
One of the parties did not deliver documents within timeframe as specified
Ex of breach of contract
Money that the buyer puts up as earnest money would go back to the buyer, and neither party would be obligated further in the transaction or under any of those terms
Ex of recession of real estate contract
Putting it in writing prevents
Fraud prevention
Beginning of every contract states that is legally binding
Importance of completing contract as agreed
Have the new party step in front of the original buyer and seller and take it over but they do not go away
Simple assignment
What are the contracts of real estate in Utah?
Buyer broker agency agreement
Listing agreement
Purchase agreement
To verify the signature was put by that person
The role of notary public
What are the two types of POA?
General or specific
Ways to terminate
Performances
Assignment
Novation
Impossibility of performance
Anticipatory repudiation
