Chapter 36 - The Buying Process Flashcards
Contemporaneous Offer
Offers to purchase or lease on behalf of two or more clients represented by the same designated agent for the same real estate parcel or unit.
Contigency
Provision in a contract, deed, law, regulation, guildines etc., that makes the parties’ rights and obligations dependent on the occurrence (or non-occurrence) of a particular event
Counteroffer
A response to an offer to enter into a contract, changing some of the terms of the original offer; a rejection of the original offer and does not create a binding contract
Earnest Money
Money offered as an indication of good faith regarding future performance of a purchase agreement.
Equitable Title
An interest created in property upon the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date (closing).
Good Funds
Collected funds in a bank account and usable immediately by the owner of the account
Latent Defect
A defect that is not visible or apparent; a hidden defect that would not be discovered in a reasonably thorough inspection of property
Letter of Intent
The document that is prepared in the initial stage of creating an offer for commercial property
Liquidated Damages
A sum of money that parties to a contract agree in advance (at the time of entering into the contract) will serve as compensation in the event of a contract breach
Material Facts
An important fact; one that is likey to influence a decision
Offer
When one person proposes a contract to another and that offer is accepted, a binding contract is formed
Patent Defect
A visible, apparent defect that can be seen in a reasonably thorough inspection of property.
Property Inspection
A visual examination of the physical structure and systems of a property
Purchase Agreement
A contract in which a seller promises to convey title to real property to a buyer in exchange for the purchase price.
RESPA
Requires lenders, mortgage brokers, or services of home loans to provide borrowers with pertinent and timely disclosures of the nature and costs of the real estate settlement process
