Contracts and Agency Flashcards
Agent
One who acts for another
Assignment
Transfer of one’s rights under contract to an individual not in the original contract
Attorney-in-fact
(Power of Attorney) An individual with written authority to act for another
Bilateral contract
A contract where both parties are obligated to perform
Blockbusting
The illegal practice of inducing panic selling in a neighborhood for financial gain
Caveat emptor
Buyer Beware
Commingle (funds)
To combine escrow funds in the same account with personal or business funds
Covenant
A promise of legal validity
Covenant of quiet enjoyment
Grantor’s assurance that the grantee shall enjoy possession of the property in peace and without disturbance by hostile claimants
Dual agency
Representation of two or more parties in a transaction by the same agent
Duress
The use of threats or physical harm to force a person to do something against his will
Earnest money
A deposit to show good faith; a down payment
Escalation clause
Clause in a lease for the adjustment of rent based on specified indexes or circumstances
Escrow
Funds, property, or other things of value left in trust to a neutral third party and released upon fulfillment of certain conditions, or by agreement of the parties
Estoppel
A legal bar to a person alleging or denying a fact when his own previous actions have conclusively indicated the contrary
Eviction
The act of expelling a person from property in his possession; may be actual or constructive
Exclusive listing (Exclusive agency)
Single broker, but client call sell themselves and not pay commission
Executory contract
A contract where something remains to be done; performance not completed
Express contract
One where all terms and conditions are openly and explicitly stated and agreed upon
Fiduciary
A position of trust and confidence
Fraud
Willful deception or misrepresentation of facts
Gross lease
Most common type of lease whereby landlords pay the expenses of ownership
Implied contract
A contract that is not expressed, rather it can be inferred by the actions of the parties
Installment sales method
Method of reporting gains on sale of property to spread out payment of taxes
Misrepresentation
A false representation of the facts
Net lease
A lease whereby the tenant pays most of the expenses of ownership (repairs, taxes, maintenance)
Net listing
A listing where the net amount due to the seller is specified, rather than the selling price
Novation
The substitution of a new contract or new party for an old one
Open listing (general listing)
A listing made available to more than one broker
Option
A binding promise to sell or lease property until a specified future date for a specified price and specified terms
Percentage lease
A lease where the rental payments are based on the volume of gross sales
Power of attorney
The written instrument appointing one to act as an Attorney in Fact
Proprietary lease
Lease that gives a tenant/shareholder the right to occupy a particular unit in a cooperative development
Puffing
Nonfactual or extravagant statements a reasonable person would recognize as such
Redlining
The practice of refusing to make loans in certain neighborhoods
Sales-leaseback
An agreement whereby the seller simultaneously leases the property from the buyer, usually on a long-term lease
Statute of frauds
An early English statute, enacted in 1677, that requires certain types of transactions be evidenced in writing in order to be binding and enforceable
Statute of limitations
A statute that restricts the period of time within which legal action may be brought
Steering
The illegal practice of directing minority members to or away from certain neighborhoods
Subordination
A process in which the holder of a superior mortgage agrees to give up his priority position
Undue influence
Unfair advantage to obtaining a contract
Unilateral contract
A contract where only one party is obligated to perform
Void
Of no legal force or effect; not binding. Also, to nullify or remove legal force from
Voidable
That which is capable of being adjudged void, but not void unless action is taken by one of the parties.
