Chapter 6

Question 1

An expression of satisfaction with an offer

Answer 1

Acceptance

Question 2

A type of seller financing in which the borrower/buyer makes payments to the seller/lender until an agreed-upon amount has been paid and the seller/lender then delivers the deed to the buyer

Answer 2

Agreements For Deed

Question 3

Failure to perform a required contractual obligation

Answer 3

Breach of Contract

Question 4

The settlement of a real estate transaction

Answer 4

Closing

Question 5

Anything that incurs legal detriment or the forgoing of a legal benefit

Answer 5

Consideration

Question 6

Terms of a contract that may result in the contract being cancelled if certain events occur

Answer 6

Contingencies

Question 7

A legal device used by two or more persons to indicate they have reached an agreement

Answer 7

Contract

Question 8

An arrangement that stretches out payments to the seller over time while allowing the seller to retain legal title until the debt is paid

Answer 8

Contract for Deed

Question 9

The mental ability to understand what a contract represents and the meaning of its terms

Answer 9

Contractual Capacity

Question 10

A response to an offer that represents a new offer

Answer 10

Counteroffer

Question 11

A third party who facilitates a real estate closing

Answer 11

Escrow Agent

Question 12

A closing using an escrow agent

Answer 12

Escrow Closings

Question 13

A clause in a sales contract that permits the cancellation of the contract if the buyer cannot successfully obtain financing for the purchase of the property according to the terms specified in the sales contract

Answer 13

Financing Contingency

Question 14

Clause in a real estate contract that permits the buyer to have a qualified inspector examine the property for any physical defects that the seller may be obligated to repair

Answer 14

Inspection and Repair Contingency

Question 15

A contract that establishes an obligation to transfer title from a seller to a buyer at some future date based on an agreed-upon payment schedule

Answer 15

Land Contracts

Question 16

A statement that specifies the position of its maker (offeror) and indicates that the offeror is willing to be bound by the conditions stated

Answer 16

Offer

Question 17

The receiving party in a contract

Answer 17

Offeree

Question 18

The party making the offer in a contract

Answer 18

Offeror

Question 19

A contract that gives one party the right, but not an obligation, to purchase a property within a specified time horizon at a specified price

Answer 19

Option-to-Buy Contract

Question 20

Fulfillment of the terms of an agreement to such an extent that the existence of the agreement may be reasonably inferred

Answer 20

Partial Performance

Question 21

A contract providing for the transfer of property

Answer 21

Sales Contracts

Question 22

Closing of a real estate transaction

Answer 22

Settlement

Question 23

A requirement that the terms of a contract be exactly complied with

Answer 23

Specific Performance

Question 24

A law designed to prevent fraudulent practices involving contracts

Answer 24

Statute of Frauds

Question 25

A clause in a sales contract that cancels the contract if the seller cannot provide clear title to the buyer

Answer 25

Tile Contingency