Contracts / Purchase And Sale Agreement Flashcards
Assignment
The transfer of rights and interests in property from one person to the other example Assignment of purchase and sale agreement or a mortgage
Acceptance
The agreement of one party to a set of terms offered by a second party
Bilateral contract
A contract where one party agrees to do something in return for the second parties promise to also do something
Bill of sale
A written contract between two parties for the sale of personal property
Competency
The state of having legal contractual capacity
Consent
One agreeing to terms of a contract does so without duress demonstrated by a notary public taking parties acknowledgment that this is their free act and deed
Conservator
An individual appointed by the court to act as a guardian
Consideration
Something given in exchange for something from another. Can be an article or a promise to do something. In real estate is usually money exchange for the property As in A deed or money in exchange for a promise to perform as in a purchase and sale agreement
Counter offer
The one receiving an offer( offeree )responds by offering a new set of terms as a new offer. The original offeree then becomes the new offer
Deed
Written instrument that transfers ownership of real property from one party to another
Disclosure
One of the duties of agency ( also known as duty of notice ) that requires an agent to keep his or her principal informed of any matter that is In principals interest
Equitable title
Interest held by the buyer when a purchase and sale contract has been signed but prior to transfer of a deed when legal title is obtained
Estoppel
Concept where a party cannot exercise rights contrary to a previous representation. Example. A town water bill relied on by a new owner could be challenged by Estopel when a new Higher bill is charged
Executed contract
A contract with all parties have fulfilled all terms
Executory contract
A contract that has not had the terms completed by one or both parties.
Express contract
A contract where the intent of the parties is clearly stated. Maybe verbal or written.
Right of first refusal
Right to have the first chance to purchase or lease a piece of property. May or may not specify additional terms such as price
Implied contract
A contract with the agreement of the parties is demonstrated by There acts conduct and not by their words or written agreements
Lease
An agreement ( written or verbal ) between an owner ( Lessor) and a tenant ( leasee ) to grant the exclusive rights of occupancy to real property for specific period of time
Laches
Doctrine that action was not taken in a reasonable period of time. Similar to statute of limitations where time is specified
Legal title
Interest obtained by the grantee when the deed is signed and delivered ( compared to equitable title )
Legality
Quality of being within law. A contract with an illegal element is void
Listing agreement
An agreement between seller and a broker to act as an agent for the sale of real property. Maybe written or verbal
Mortgage deed
Conditional conveyance of the property to the bank subject to the borrowers rights of redemption. Refers to as the mortgage
Mortgage note
The written promise to pay money borrowed against real property as security
Novation
A new obligation is substituted for an old obligation ( a bank accepting a new note with a new mortgagor all for an old note would do so by novation )
Offer
A promise by one party to act in a specified Manner providing a second party acts in the manner requested.
Offeree
Party receiving an offer from another party( buyer or seller )
Offeror
Party extending an offer to another party (buyer or seller )
Option
An agreement to keep that offer to purchase or to sell open for some period of time. The party agreeing to the option terms ( usually the seller ) is bound by the option but not the party making the option offer ( usually the buyer ).
A written document authorizing one person to act for another to what ever extent specified
Power of attorney
Purchase and sale agreement
A written contract for the sale of real property between two parties ( seller and buyer. )
Specific performance
A remedy at law with the court will force a party to fulfill his or her part of a contract
Statute of frauds
State law that requires certain documents to be in writing to be enforceable
Statue of limitations
The time limit within which legal action must be taken to be enforceable. Example In Massachusetts the statue limitations on a prescription and adverse possession is 20 years
Suit for damages
One of the legal remedies in the case of a contract default or nonperformance. Suit to recover compensation for financial losses suffered due to the contract nonperformance
A contract where one party makes a promise to perform without a second party promise to perform. Example reward for lost property
Unilateral contract
Valid
Having legal ,binding force
Void
Having no binding legal force
Voidable
Having binding force but able to be broken by one of the parties
Duress
Force applied to make someone act against his will
Caveat Emptor
A principle in law that means “ let the buyer beware”
