Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

REAL ESTATE CRAM COURSE 11/2020 > Contracts > Flashcards

Contracts Flashcards

1
Q

Valid

A

(legal) Has all essential elements(competent parties, offer and communicated acceptance, consideration and legality)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Invalid

A

Validity has ended. Listing has expired.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Void

A

Missing one or more essential elements. Never was a contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Voidable

A

Defected elementand voidable ONLY BY INJURED PARTY.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Void Types

A

1.Misrepresentation(who misrepresented?) Buyer or Seller?-voidable. 2.Agent=suit for damages. 3.Minor buyer. 4.Under Duress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Unenforceable

A

Will NOT stand up in court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Enforceable

A

Will stand up in court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Statute of Frauds

A

must be in writing to be enforceable (as opposed to valid) RE. sales contracts, deeds, leases over 1 year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Expressed

A

words (written or verbal)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Implied

A

actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Uni-lateral

A

one promise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Bi-lateral

A

two promises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Executory

A

promises made but not completed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Executed

A

All promises completed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who can draft contracts form scratch?

A

only licensed attorneys

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Color ink on contract?

A

Blue only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is to create an agency?

A

client relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

WHat is the Office Broker Policy? (GA Law)

A

Types of agencies OFFERED AND NOT OFFERED must be disclosed (to prospective client) PRIOR to the agreement of an agency contract.

19
Q

Who is on the listing agreement

A

Seller and LISTING BROKER

20
Q

Buyer Broker Agreement

A

Buyer and Selling Broker. Exclusive, expiration date, duties, agency disclosures and compensation.

21
Q

Property Management Agency agreement includes who?

A

Owner and Broker(Property Manager)

22
Q

HOA Management includes who as far as agency agreement?

A

Association and Broker (property Manager)

23
Q

Employment affiliation agreement

A

Affiliate with Broker: in writing, duties and compensation(while affiliated and any after affiliation.

24
Q

What is Open Listing?

A

Open to all Brokers. Only the Broker that procures the cause gets paid. Uni lateral contract. Exp 1 yr in GA

25
Q

Exclusive Agency Listing

A

Owner (seller) may sell )procure casue) and NOT PAY the Broker’s commisssion

26
Q

Exclusive Right To Sell Listing:

A

One Broker. Broker get’s paid no matter who procures the sale.

27
Q

Where do commissions go in ALL EXCLUSIVE LISTINGS?

A

To the Broker with AGENCY agreement. The Broker may coop MLS with other Brokers.

28
Q

What is Net Listing

A

Seller nets anything above commission. ILLEGAL.

29
Q

How can Listings(agency) Terminate?

A

1.Acts of the parties (ie. owner fires, mutual agreement, Broker loses license)2. Operation of law-time, sale, performance, condemnation(zoning), forclosures, bankruptcy, death of Broker and Extinction(house burns)

30
Q

What are the 4 elements of a valid )legal) Real Estate Contract?

A
  1. Competent Parties (seller 18, sound minds, contractual capacity)
  2. Offer and Communicated Acceptance (meeting of the minds) - exact terms, signatures and legal descriptions before signing the contract or it is void.
  3. Consideration - offer is valuable. The PRICE usually) NOT the earnest money.Deed contracts may use good love but not RE contracts. Must be valuable - money, personal property and service)
  4. Legal.
31
Q

What is equitable title?

A

Right to future title once an offer is accepted - gives the buyer the right to sue for specific performance

32
Q

Name contingencies

A

Due diligence(inspections) Financing contingencies, spousal approval, home warranty.

33
Q

special stipulations

A

Express the intent of the parties NOT in the original contract for that one sale. IE contingencies, inspection

34
Q

time is of the essence

A

Timely completion of contingencies

35
Q

survival clause

A

Items to be completed after closing

36
Q

Addendums

A

Must be referenced in the original contract. Done before binding.

37
Q

Amendments

A

Changes the original binding contracts. Requires additional consideration. Separate agreements. BOTH must be approved, signed (or initialed) and dated.

38
Q

Conflicts and Precedence

A

handwritten over type-written over preprinted

39
Q

Assignment

A

A contract (except personal services contracts (listings may be assigned to another party unless expressly stated otherwise in the contract and the other party does not provide additional services.

40
Q

Does death terminate the Real Estate contract?

A

NO

41
Q

What happens when a breach occurs

A

Either party can 1.rescind (rescission -court action) Return to status quo (forgive)

  1. Sue for actual damages.
  2. Sue for specific performance
  3. SELLER’s only could declare the contract forfeit and keep the earnest money. MOST likely what the seller will do if the buyer defaults.
42
Q

Earnest Money

A

Good Faith Money, Binder Money, Pre-arranged liquidated damages to seller if buyer defaults. Gives some assuarance the buyer will close. Contract states WHO holds the trust money.

43
Q

Trust Account

A

a bank account to hold other people’s money (for the publ;ic’s protection) Broker must be able to sign on all accounts.

44
Q

Conversion

A

Using other people’s money for your benefit..CRIME

REAL ESTATE CRAM COURSE 11/2020 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions