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Real Estate > Contracts > Flashcards

Contracts Flashcards

1
Q

Contract for Deed

A

Seller financing with title retention to protect the seller - title is not transferred to the buyer until the full price is paid. Also called land contract, installment contract and real estate contract.

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2
Q

Voidable contract

A

In the eyes of the law, one party is at a disadvantage and can void the agreement - a minor, someone who signed while drunk or high, someone who signed under duress

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3
Q

Default

A

Non-performance of a duty under a contract

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4
Q

Bilateral contract

A

An exchange of promises binding both parties

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5
Q

Partial performance

A

An injured party is willing to settle for partial performance of a contract upon default by the other party

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6
Q

Unilateral contract

A

A contract where only one party made a promise, only one party can be sued

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7
Q

Executory contract

A

Contract that has been signed by the parties but not yet carried out; sales contract before closing, or contract for deed

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8
Q

Express contract

A

Written or spoken

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9
Q

Assignment

A

Substitution of a new party into an existing agreement; can be used to shield the identity of a buyer who wishes to be anonymous

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10
Q

Consideration

A

Something of value given by the party to a contract; the buyers promise to pay in exchange for the sellers promise to deliver a deed

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11
Q

Valid contract

A

An agreement that meets all the legal requirements of a contract

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12
Q

Fully executed contract

A

A contract that is signed and carried out; sales contract at closing

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13
Q

Effective date of contract

A

The date on which the last party signed

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14
Q

Implied contract

A

By actions or evidence, but not written or spoken

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15
Q

Suit for specific performance

A

A lawsuit to hold the defaulting party to his duties under a contract

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16
Q

Void contract

A

Invalid contract. One of the key elements is missing. No contract at all.

17
Q

Earnest money

A

A buyers evidence of good faith, submitted with an offer to purchase

18
Q

Lease purchase agreement

A

Lease with an option to buy. A tenant has occupancy now and the right to purchase at a specified future date and price

19
Q

Real estate contract

A

A written promise to pay, by the buyer, and a written promise to deliver a deed, by the seller

20
Q

Mutual recission

A

The parties to a contract agree to cancel the contract

21
Q

Addendum

A

Additional material or supplemental information added to an agreement

22
Q

Time is of the essence

A

A clause in a contract that allows each party to hold the other to strict performance on the date specified

23
Q

Counteroffer

A

A rejection of an offer and the presentation of a new offer.

24
Q

Offer and acceptance

A

Meeting of the minds or mutual agreement. All parties concerned understand and agree to all the terms of the contract

25
Q

Liquidated damages

A

Damages specified in a contract that will be awarded in the event of a default

26
Q

Option fee

A

An amount paid to secure an option contract- paid up front, directly to the seller, and never refundable

27
Q

Right of first refusal

A

Clause in a lease allowing a tenant the right to match or better any offer before the property will be sold to another party

28
Q

Unenforceable contract

A

Oral contract, will not be enforced by the courts. Violates statute of frauds

29
Q

Breach of contract

A

When one of the parties is in default

30
Q

Contingency

A

A condition in a contract that has not yet been met - financing, inspections, etc.

31
Q

COLIC

A

Requirements of a valid and enforceable real estate contract - competent parties, offer and acceptance, legal purpose, in writing, consideration

32
Q

Novation

A

The substitution of a new contract for an existing one. Original agreement is terminated

33
Q

Statute of frauds

A

Law requiring all real estate contracts to be in writing to be enforceable

34
Q

Amendment

A

Modification to an existing agreement is made and signed

35
Q

Money damages

A

Compensation awarded to an injured party as a result of a lawsuit against the defaulting party in a contract

36
Q

Option contract

A

A unilateral contract where one party has the option to buy property at a preset price within a negotiated time period

37
Q

Competent parties

A

Sane, sober, consenting adults 18 or older

38
Q

Offer

A

A properly completed form with a price less than, equal to, or more than the sellers asking price and signed by the buyer

Real Estate (7 decks)

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