Purchase contracts Flashcards
The transfer of 1% interest under a contract to another. Assignment does not release the assignor from the obligations stated in the contract
Assignment of contract
Illegally mixing personal funds with money held in trust on behalf of the client
Commingling
The illegal use of funds being held in trust
Conversion of funds
A response to an offer to enter into a contract, changing some of the terms of the original offer. This is a rejection of the original offer (not a form of acceptance) and does not create a binding contract until it is agreed upon by both parties
Counteroffer
Money given by a fire upon signing a sales contract, showing the buyers intention to carry out the terms of the contract. This is an inducement in a show of good faith (NOT consideration) and is NOT necessary for a valid contract to exist
Earnest money
Any present right to acquire legal title to property
Equitable title
A system in which things of value are held on behalf of the parties to a transaction by a diss interested third-party until the specified conditions have been met
Escrow
A document that expresses the parties intention to invest in, by, or develop a property without creating a binding legal obligation; primarily used in commercial transactions
Letter of intent
A proposal to purchase or lease real property; requires intent to contract and definite terms
Offer
A person who receives an offer or to whom an offer is made
Offeree
A person who makes an offer
Offeror
A term used in a purchase contract or lease to indicate that the buyer or less he may name another person or entity who will complete the transaction
Or nominee
A bank account, separate from a real estate brokers personal and business account, used to segregate trust funds from the brokers own funds. Also called fiduciary account
Trust account
