Contracts Flashcards
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.
Listing
A contract that has not been put into words, but is implied by the actions of the parties.
Implied Contract
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.
Exclusive Right to Sell
- Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed.
Acceptance
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.
Open Listing
Anything of value, such as money, services, goods, or promises, given to induce another to enter into a contract.
Consideration
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.
Contingency Clause
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.
Counteroffer
Money offered as an indication of good faith regarding the future performance of a purchase agreement.
Earnest Money
The interest in property held by the rightful owner. Also, the vendor’s (seller’s) interest in property under a land contract.
Legal Title
A contract that has been put into words, either spoken or written.
Express Contract
Any present right to acquire legal title to property.
Equitable Title
A legal remedy in which a court orders someone who has breached a contract to perform as agreed, rather than simply paying money damages.
Specific Performance
A law that requires certain types of contracts to be in writing and signed in order to be enforceable.
Statute of Frauds
A contract in which a seller promises to convey title to real property to a buyer in exchange for the purchase price.
Purchase Agreement
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.
Voidable Contract
Person to whom an option is given.
Optionee
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).
Unilateral Contract
The seller in a land contract.
Vendor
The buyer in a land contract.
Vendee
Person who gives an option.
Optionor
