Contracts Flashcards
specific performance
court ordered obligation to fulfil contract
Seller Closing Costs (6)
Commission Transfer Tax Existing mortgage Mortgage discharge fee deed prep proration of taxes
Buyer Closing Costs (14)
purchase price/down payment transfer tax tax proration boundary survey mortgage loan inspection title search title insurance credit report fee loan origination fee recording fee appraisal fee prepaid mortgage interest hazard insurance attorney's fees
Buyer credits (2)
earnest money
rent proration
Seller Closing Credits (2)
Purchase price (sales price) Sale of personal property
bilateral contracts
mutual promises; must be communicated
unilateral contracts
promise by one party and act by the other
Requirements for valid contracs (5)
competent parties mutual assent offer and acceptance consideration legality of object
Ways Contracts are Voidable (4)
misrepresentation
fraud
undue influence
duress
misrepresentation
false statement of material fact
fraud
intentional false statement of material fact
undue influence
any improper or wrongful influence by one party over another whereby the will of a person is overpowered so she is induced to act or prevented from acting on free will
duress
inability of a party to exercise their free will because of fear of another party
Agency Relationships
Listings - between seller and broker
Buyer - between buyer and brokerage
Types of Listing Contracts (3)
- Open
- Exclusive Agency
- Exclusive Right to Sell
Open Listing
listing given to one or more brokers wherein the broker procuring the sale is entitled to the commission but imposes no commission obligation on the owner in the event the owner sells the property to a person who was not interested in the property by one of the listing brokers.
Exclusive Agency
listing given to one broker only who is entitled to the commission if the sale is effected by the broker or agent of the listing broker but imposes no commission obligation to the owner in the event the owner sells the property to a person who was not interested in the property by the listing broker/agent
Exclusive Right to Sell
listing given to one broker only who is entitled to the commission if the property is sold by anyone during the time of the listing contract
Bond for Deed
aka contract for deed or land contract; contract of sale and method of financing by the seller for the buyer
option to purchase
a contract whereas the owner sells the right to purchase his property to a prospective buyer
