Unit 11: Real Estate Contracts

Question 1

A voluntary agreement or promise between legally competent parties

Answer 1

A contract

Question 2

A contract is either expressed or implied and must be in

Answer 2

writing

Question 3

What is the statue of frauds

Answer 3

All contracts for sale of real estate in MA must be in writing to be valid; verbal agreements are non-binding

Question 4

Type of contract when two people make a promise; both parties agree to do something

Answer 4

Bi-lateral contracts

Question 5

Only one person makes a promise hoping the other person will accept is this type of contract

Answer 5

Unilateral contract

Question 6

Contracts remain as this when one or both parties still have an act to perform

Answer 6

Executory

Question 7

Once all parties have fulfilled their promise, the contract becomes

Answer 7

Executed

Question 8

A contract is considered to be ______ when it has all required elements

Answer 8

Valid

Question 9

If a contract lacks one or more elements; no legal force

Answer 9

Void

Question 10

A contract that has all the legal elements on its face but can be voided by one of the parties

Answer 10

Voidable

Question 11

This contract cannot be enforced in court

Answer 11

Unenforceable - not in writing

Question 12

Each party to a contract has certain rights and duties to fulfill

Answer 12

Performance of a contract (time is of the essence)

Question 13

Transfer a contract to another person with this clause

Answer 13

Assignment

Question 14

Substitution of a new contract for an existing contract

Answer 14

Novation

Question 15

Once a seller accepts a buyer in writing, you have a contract.
This is a violation of any terms or conditions of the contract

Answer 15

Breach of contract

Question 16

A buyer can ask the court to force a seller to go through with the sale and transfer of property as previously agreed with this:

Answer 16

Suit for specific performance

Question 17

If the buyer signs the P&S, all conditions are met including

Answer 17

home inspection, financing approved, and title search

Question 18

If a buyer backs out of the contract, they would be subject to this

Answer 18

Liquidated damages- forfeit their deposit

Question 19

How long is the statue of limitations in MA

Answer 19

7 years

Question 20

Once a seller accepts an offer in writing it is a ______ __________ Contract

Answer 20

Legally binding

Question 21

Can a real estate agent accept or reject any offers?

Answer 21

NO- all must be presented to the seller

Question 22

This has the same meaning as an offer

Answer 22

Binder

Question 23

It is customary as good faith that money collected must be deposited into a :

Answer 23

Escrow account - Earnest money deposits

Question 24

Co-mingling is

Answer 24

mixing customer assets with the brokers- not allowed

Question 25

Once the buyer signs a contract to purchase real estate, they do not immediately receive the title but get this:

Answer 25

Equitable title