Unit 11 Flashcards
Valid Contract
Voluntary agreement based on consent of the agreement
-May be revoked at time of acceptance
-Must be of legal age and able to understand nature or consequences of their actions
-Contact must be supported by consideration
-Have legal act as its objective
Express Contract
Implied Contract
Bilateral conract
Having obligations on both sides
Unilateral contract
A promise by one side that can be accepted by performance of the other side
Executed
All parties have fulfilled their promises
Executory
One or both parties still have an act to perform
Voidable
If it may be rescinded or disaffirmed by one or both parties. Including contract with a minor
Void
If one of the essential elements is missing. Includes mistake, misrepresentation, fraud, undue influence, duress, no mutual consent
Contract may be DISCHARGED (completed) by
-Performance
-Partial Performance
-Substantial Performance
-Impossibility of Performance
-Novation
-Breach
-Mutual Agreement
-Operation of Law
-Rescission
-Cancellation
Client Representation Agreement
Sales Contracts Agreement
Accompanies by an earnest money deposit, which may be held in a broker’s escrow or trust account until an escrow is arranged to complete a property purchase or the funds are returned to the would-be-buyer if there is no agreement
Options Agreement
Escrow Agreements
Property Management Agreements
Lease Agreements
Owner Financing Agreements
What’s included in a sales contract?
Identifies the parties and subject property, EMD, financing method, identify closing agent, closing, possession, fixtures, personal property, inspections, seller disclosures, and contingencies (ex. attorney to review, secure financing, inspections)
Amendments
Addendums
Option
Allows the optionor (owner) to give the optionee the right to purchase at a later dat eat the price fixed in the option agreement
Owner financing
Land contract also known as
Contract for deed, bond for title, installment contract, land sales contract, or article of agreement for warranty deed
