Real Estate Chapter 6 Intro To Contracts

Question 1

Contract

Answer 1

Is an agreement between two or more parties in which each party agreers to do something or not do something.

Question 2

Contract for sale

Answer 2

A written agreement between seller and purchaser in which the purchaser agrees to buy certain real estate, ant the seller agrees to sell, upon the

Question 3

Statute of fraud

Answer 3

A state law that provides that certain contracts must be in writing in order to be enforceable; applies to deeds, mortgages, and other real estate contracts, with the exception of leases for periods shorter than 1 year.

Question 4

Vendor

Answer 4

Is the seller

Question 5

Vendee

Answer 5

Is the buyer

Question 6

Lessor

Answer 6

The one who gives property for another’s use

Question 7

Lessee

Answer 7

The user of the property

Question 8

(The borrower) mortgagor

Answer 8

The one who pledges property as collateral for a debt

Question 9

Mortgagee

Answer 9

The lender receives the mortgage

Question 10

The four elements of a contract

Answer 10

• Mutual agreement ( offer and acceptance
• Consideration
• legally competent parties
• lawful purpose

Question 11

Mutual agreement

Answer 11

That parties must agree. There is an offer and acceptance of that offer.

Question 12

Counteroffer

Answer 12

Any change that a party makes to an offer received constitutes a rejection of that offer and, if presented, a substitution of a new offer.

Question 13

Consideration

Answer 13

Is something of value that is provided.

Question 14

Valuable consideration

Answer 14

Is money given in exchange for property. Another common form of consideration, in a gift, is live and affection. Called good consideration.

Question 15

Legally competent competent parties

Answer 15

Parties in real estate are adults are I. Age, 18 or 21 in most state (not minors), who are mentally competent. An illiterate person may enter a contract when the written words have been read or explained.