Contracts Flashcards
What are some of the rules for a listing agreement?
Listing must have a definite ending date and can not automatically renew.
The listing must have a sufficient property identification.
Price and terms a seller is willing to accept as well as commission must be included.
Both the owner and the broker or brokers rep must sign the listing agreement. The listing agreement then has to be returned to the seller within 24hrs.
What is procuring cause?
If agent is required to find a purchaser, the broker is entitled to commission when the seller is presented with an offer from a ready, willing, and able buyer at the full list price or any other terms acceptable to the seller.
What is the statute of frauds
the requirement that in order for a contract to purchase or sell real estate, the contract must be written and signed to be enforceable.
The statute of frauds does not apply if two conditions have been met.
- ) Partial or full payment has been made for the property.
- ) The buyer takes physical possession of the improvements to the subject property.
In either case payment or possession are regarded as evidence a valid contract exists.
What is an owner in severalty
It is a sole owner. NOT SEVERAL.
What is the difference between joint tenancy and tenancy in common?
Joint Tenancy - has survivorship. The survivor gets it all.
Tenancy in Common - has inheritability. If one owner dies it goes to his/her heirs not to the other property owner.
What is tenancy by the entireties
ownership by a husband and wife. This is a form of joint tenancy and has rights of survivorship.
How to test if property is real property or personal property?
I.R.M.A. I Intent R Relationship M Method of how attached. A Adaptation
When is personal property subject to sales tax?
If personal property is itemized on a contract along with separately stated prices the personal property is subject to sales tax.
Is the buyer required to provide any earnest money.
No.
Also,, zero dollar earnest money offers must be presented.
When must a special assessment be paid for by the seller?
A seller usually pays for a special assessment lien after it is completed by the date of closing.
If a special assessment is assessed by lineal ft. of street What must you do to determine the special assessment costs.
Divide by 2 because there are two sides to a street.
