Real Estate Contract Law Flashcards
Legal Status of Contracts (4)
Valid
Valid buy unenforceable
Void
Voidable
Valid but unenforceable
Can’t be enforced by law
Contract Validity Requirements (5)
- Competent parties
- Mutual consent
- Valuable consideration (two-way & sufficient)
- Legal purpose
- Voluntary act of good faith
Real estate contracts must be:
- Be in writing.
- Contain legal description of the property
- Be signed by one or more of the parties
(leases of one year or less don’t have to be in writing)
Statute of frauds
Requires certain contracts to be in writing to be enforceable (i.e., real estate contracts)
UETA
Uniform Electronic Transactions Act
Provides that electronic records and signatures are legal and must be accepted.
e-Sign
Electronic Signatures in Global and National Commerce Act
Makes contracts, records & signatures enforceable regardless of medium, even where UETA is not accepted.
Parol
Oral
Express contract
All terms & covenants have been manifestly stated and agreed to by all parties (Oral or Written)
Implied contract
An unstated or unintentional agreement that may be deemed to exist when the actions of any of the parties suggest its existence.
Bilateral contract
Both parties promise to perform their parts of an agreement in exchange for performance by the other party.
Unilateral contract
One party promises to do something if the other party does something. (i.e. Option to buy)
Accretion
Increase in land from soil deposits from waterflow
Erosion
Gradual loss of land by flowing water or wind
Avulsion
loss of land by sudden & large-scale change in waterflow (owner still owns land under water’s previous location)
