Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Unit 11 > Flashcards

Unit 11 Flashcards

1
Q

Contract

A 
Voluntary
Agreement or promise
Between legally competent parties
supported by legal consideration
to perform some legal act

OFFER, ACCEPTANCE, CONSIDERATION

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Express

A

State the term and show intentions in words, oral or written

contracts for real property must be in writing to be enforceable in court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Implied

A

Agreement demonstrated by acts and conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Bilateral

A

both parties promise to do something; real estate sales contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

unilateral

A

one sided; exclusive listing contract; option contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

option contract

A

where a party retains option to enforce contract at a later date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

executed

A

all parties have fulfilled their promise; at closing sales contract is executed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

executory

A

exists when one or both parties still have an act to perform; sales contract once signed until closed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Elements of Valid Contract

A

offer and acceptance (mutual assent) - meeting of the minds

any offer or counter may be withdrawn at any time before it has been accepted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Acceptance

A

if signed, the offer is accepted and contract is formed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Offers

A

Can be terminated by a counter or rejection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Consideration

A

give something of legal value, parties agree and no undue influence or fraud

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Legal purpose

A

legal purpose or void

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Validity of Contracts

VALID

A

meets all the essential elements that make it legally sufficient or enforceable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

void

A

no legal effect because it lacks some of essential elements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

void

A

no legal effect because it lacks one or more of the essential elements; was never valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

unenforceable

A

Can’t sue each other

ex - not in writing

18
Q

performance

A

perform certain rights and duties usually within a specified time

19
Q

performance

A

perform certain rights and duties usually within a specified time; once fulfilled the contract is terminated

20
Q

assignment

A

transfer of rights or duties

ex elderly person assigns handling of contract to someone

21
Q

novation

A

substitution of new contract for existing one

ex. writing new contract accepted by all parties

22
Q

breach of contract

A

violation of any of the terms or conditions without legal excuse

23
Q

breach of contract

A

violation of any of the terms or conditions without legal excuse; or failing to fulfill duties and obligations under the contract

24
Q

Statute of Limitations

A

time limit in which rights may be enforced
oral - 5 years
written 10 years

25
Q

Delivery of signed contract

A

within 24 hours

26
Q

Ripening of Contract

A

when doc is signed by seller, it becomes contract of sale

27
Q

Earnest $

A

discharge buyer from defaulting
help seller feel comfortable taking property off the market
cover any expenses the seller might incur if buyer defaults

28
Q

Earnest $

A

discourage buyer from defaulting
deposited by next business day into separate account
records keep for min of 5 years
help seller feel comfortable taking property off the market
cover any expenses the seller might incur if buyer defaults

29
Q

equitable title

A

interest buyer has in land after contract is signed

30
Q

destruction of the premises

A

seller responsible until title transfers and has to return earnest $

31
Q

liquidated damages

A

when parties agree on certain amount of $ that will compensate nonbreaching party

32
Q

Contingencies

A

make it a voidable contract

  • specific actions
  • time frame
  • who pays any costs involved

Types of Contingencies

  • mortgage
  • inspection
  • property sale
33
Q

Contingencies - buyer can get out of contract without breaching the contract

A

make it a voidable contract

  • specific actions
  • time frame
  • who pays any costs involved

Types of Contingencies

  • mortgage
  • inspection
  • property sale
34
Q

amendment

A

change to existing contract

35
Q

addendum

A

new contract that includes provisions in original contract “by reference”

36
Q

option

A

owner gives prospective buyer option to buy at fixed price within a certain period of time

37
Q

option agreement

A

is UNILATERAL

pay consideration and can be renewed usually with additional consideration

38
Q

option agreement

A

is UNILATERAL

pay consideration and can be renewed usually with additional consideration

39
Q

Land Contract/Installment contracts/Seller Financing

A

seller retains legal title, buyer takes possession and equitable title. Make installment payments, taxes, insurance, repairs and upkeep

40
Q

Land Contract is Void if:

A

forbids buyer to record contract
provides recording does not constitute notice
any penalty for recording

Real Estate (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions