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real estate > contracts > Flashcards

contracts Flashcards

1
Q

What are contracts?

A

Legally binding agreements between two or more parties agreeing to do or not do something

two or more parties= natural/legal persons

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2
Q

Offer and Acceptance

A

Shown by signatures or action electronic signatures are binding..
Real estate contracts must be in writings per Statute of Frauds..

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3
Q

What kinds of considerations are there

A
  1. Valuable consideration $$$
  2. Good consideration (no monetary value).
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4
Q

What is Realty of Consent and Competence?

A

Freedom from:
-Misrepresentation - Fraud - Duress - Undue Influence -

Parties must be:
-Sober - Of Sound Mind - Of Legal Age

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5
Q

What is voidable?

A

Able to move forward, but could go to a judge and void contract.

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6
Q

What is an unenforceable contract?

A

Cant be enforced if the court deems it impossible! unjust..

ex: verbal contract

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7
Q

What is Doctrine of Laches?

A
  • Can be used to render a contract unenforceable
  • Lose your rights if you fail to assert them within a reasonable time frame…
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8
Q

What is Statute of Limitations?

A
  • Hard legal limit to when you can assert you can bring a claim to court
  • Can be used to render a contract unenforceable after that time limit has passed

ex: MA certain contracts= 2 yrs to sue someone under breach of contract

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9
Q

Unilateral

A

One party making promises to another

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10
Q

Bilateral

A

Two parties making promises to each other

Ex: Fixed term lease Purchase & Sale agreement

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11
Q

Executed

A

Completed and finished contracts

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12
Q

Executory

A

Contracts that have been agreed to

(Not yet completed)

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13
Q

What is a Breach of Contract?

A

One of the parties of a contract dont do what they agreed to do.

“Performance Issues

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14
Q

Doctrine of Privity (Privity of Contract)

A

Right to sue under a contract.

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15
Q

What happens during breach of contract?

A

cancellation of contract//Specific performance// compensation for damages//pre agreed upon $$ in event of breach//loss of deposit

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16
Q

Common clauses in contract?

A

Ironclad Merger Clauses..Severability Clause.. Contingency Clause

17
Q

Listing Contract

A

Broker employment contracts.. used to hire real estate agent to sell home//negotiable//

18
Q

Entry Only Listing (Data Entry Only)

A

Seller pays fee for MLS listing// Broker offers limited services to Seller// Seller negotiates own sale//

19
Q

Open Listing

A
  • Seller hires multiple brokers
  • Can be verbal/written
  • No commission earned if seller finds buyer w/ no help
20
Q

Exclusive Listing

Agency

A
  • Seller hires 1 broker
  • Must be in writing with expiration date
  • No commission earned if seller finds buyer w/ no help
21
Q

Exclusive Right to Sell

A
  • Seller hires 1 broker
  • Must be in writing with expiration date
  • Broker earns commission and may co-broke
  • seller must pay commission even if they find buyer
22
Q

What is the purpose of an Offer?

A

Legally binding contract to enter a P&S

offer leads to the signing of a P&S Contract

Verbal offers or acceptance are non binding

23
Q

Offers may be terminated by?

A
  • At end of time limit stated in offer
  • Dealth of either part of offer
  • Destruction of the object of offer
  • Withdrawl of offer before it being written
  • Counter-offer

binder or letter of intent can serve as an offer

agency relationshipd have no effect on the offer

24
Q

Purchase and Sale Contracts?

A

Agreement about how a sale will take place

25
Q

Whats in a P&S

A
  • Obligations of buyer and seller
  • Contingencies
  • Date of closing
26
Q

Basic Essentials of a valid P&S?

A
  • Name of buyer & seller
  • Legal description of address
  • Offer and Acceptance
  • Terms and conditions
  • Contingencies
  • Closing date
27
Q

What are Options?

A
  • Written contract where owner of a property grants another party the right to putchase or lease property
  • consideration exchanged $$
  • Certain time frame at pre agreed terms
28
Q

What type of contract is an optoion?

A

Unilateral

29
Q

Can options be assigned?

A

Yes

Agents who bring an optionee will only earn commission if the right is exercised

30
Q

Right of First Refusal

A
  • A buyer is offered “first right” to match the best offer made on a property
  • Right doesnt give buyer control over the price of terms
  • Allows seller to better track the market and ensure fair market value
31
Q

Right of First Offer

A

Buyer is offered the “first right” to purchase a property

32
Q

Power of Attorney

A
  • Written document giving the right to act as a proxy for another
  • Creates attorney in fact

real estate (7 decks)

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