Chapter 6 Flashcards
An expression of satisfaction with an offer
Acceptance
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
Agreements For Deed
Failure to perform a required contractual obligation
Breach of Contract
The settlement of a real estate transaction
Closing
Anything that incurs legal detriment or the forgoing of a legal benefit
Consideration
Terms of a contract that may result in the contract being cancelled if certain events occur
Contingencies
A legal device used by two or more persons to indicate they have reached an agreement
Contract
An arrangement that stretches out payments to the seller over time while allowing the seller to retain legal title until the debt is paid
Contract for Deed
The mental ability to understand what a contract represents and the meaning of its terms
Contractual Capacity
A response to an offer that represents a new offer
Counteroffer
A third party who facilitates a real estate closing
Escrow Agent
A closing using an escrow agent
Escrow Closings
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
Financing Contingency
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
Inspection and Repair Contingency
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
Land Contracts
A statement that specifies the position of its maker (offeror) and indicates that the offeror is willing to be bound by the conditions stated
Offer
The receiving party in a contract
Offeree
The party making the offer in a contract
Offeror
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
Option-to-Buy Contract
Fulfillment of the terms of an agreement to such an extent that the existence of the agreement may be reasonably inferred
Partial Performance
A contract providing for the transfer of property
Sales Contracts
Closing of a real estate transaction
Settlement
A requirement that the terms of a contract be exactly complied with
Specific Performance
A law designed to prevent fraudulent practices involving contracts
Statute of Frauds
A clause in a sales contract that cancels the contract if the seller cannot provide clear title to the buyer
Tile Contingency
