Contracts

Question 1

A written agency contract between seller and a real estate broker, stating the broker will be paid a commission for finding (or attempting to find) a buyer for the seller’s real property.

Answer 1

Listing

Question 2

A contract that has not been put into words, but is implied by the actions of the parties.

Answer 2

Implied Contract

Question 3

A listing agreement that entitles the broker to a commission if anyone, including the seller, finds a buyer for the property during the listing term.

Answer 3

Exclusive Right to Sell

Question 4

1. Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed.

Answer 4

Acceptance

Question 5

A non-exclusive listing, given by a seller to as many brokers as they choose. If the property is sold, a broker is only entitled to a commission if they are the procuring cause of the sale.

Answer 5

Open Listing

Question 6

Anything of value, such as money, services, goods, or promises, given to induce another to enter into a contract.

Answer 6

Consideration

Question 7

A provision in a contract, deed, law, regulation, guideline, etc. that makes the parties’ rights and obligations depend on the occurrence (or nonoccurrence) of a specified event. Also called Condition, Escape Clause, Subject to Clause, or Kick-Out Clause.

Answer 7

Contingency Clause

Question 8

A response to an offer to enter into a contract, changing some of the terms of the original offer. It is a rejection of the original offer (not a form of acceptance), and does not create a binding contract unless the new it is accepted by the original offeror.

Answer 8

Counteroffer

Question 9

Money offered as an indication of good faith regarding the future performance of a purchase agreement.

Answer 9

Earnest Money

Question 10

The interest in property held by the rightful owner. Also, the vendor’s (seller’s) interest in property under a land contract.

Answer 10

Legal Title

Question 11

A contract that has been put into words, either spoken or written.

Answer 11

Express Contract

Question 12

Any present right to acquire legal title to property.

Answer 12

Equitable Title

Question 13

A legal remedy in which a court orders someone who has breached a contract to perform as agreed, rather than simply paying money damages.

Answer 13

Specific Performance

Question 14

A law that requires certain types of contracts to be in writing and signed in order to be enforceable.

Answer 14

Statute of Frauds

Question 15

A contract in which a seller promises to convey title to real property to a buyer in exchange for the purchase price.

Answer 15

Purchase Agreement

Question 16

A contract that one of the parties can disaffirm, without liability, because of a lack of legal capacity or a negative factor such as fraud or duress.

Answer 16

Voidable Contract

Question 17

Person to whom an option is given.

Answer 17

Optionee

Question 18

When only one party makes a legally binding promise and the other has not. The promise will become legally binding if the other party chooses to accept it (similar to an offer).

Answer 18

Unilateral Contract

Question 19

The seller in a land contract.

Answer 19

Vendor

Question 20

The buyer in a land contract.

Answer 20

Vendee

Question 21

Person who gives an option.

Answer 21

Optionor