Unit 2-B Flashcards
A contract in which the parties expressly enter into mutal agreements or engagements (e.g., a real estate sales contract). Each party promises to perform some act
Bilateral contract
A written employment contract in which the buyer agrees to pay the broker compensation to assist the buyer in locating and acquiring property.
Buyer Broker Agreement (Buyer Representation agreement)
Refers to a property that is not available for showing or sale until a later date
Coming Soon Listing
- Of sound mind, for the purposes of entering a contract or executing a will; not suffering from mental illness, retardation, or senility. 2. Of sound mind and having reached the age of majority
Competent Parties
An agreement that the law will enforce. The elements of a contract are mutual assent (offer and acceptance), consideration, competent parties, legal subject matter, and sometimes that the contract be in writing if required by the Statute of Frauds
Contract
A promise often given by the seller of business not to compete with the buyer of the business in an agreed area for a specified time.
Covenant not to compete
Employment Agency Listing
A listing agreement where the broker is given the exclusive right to sell property, but the owner reserves the right to sell the property on their own with payment to the broker
Exclusive Agency Listing
A written listing agreement where the seller contracts with only 1 broker to sell the property; may be an exclusive agency agreements or exclusive right to sell agreement
Exclusive Listing
A listing agreement where the broker is entitled to collect a sales commission regardless of who sells the property, including a sale by owner of the property
Exclusive Right to Sell Listing
A contract that has been performed by all parties
Executed Contract
A valid contract that has not been fully preformed, such as signed real estate contract prior to closing.
Executory Contract
A contract that has been put into words, either spoken or written
Expressed Contract
A contract based on one’s actions through the behavior (actions or words) of one or both parties
Implied Contract
A requirement for a contract whereby the objective of the agreement is lawful.
Legal Object (Legal Purpose)
A listing agreement in which the seller sets a net amount he or she is willing to accept for the property; if the actual selling price exceeds that amount, the broker is entitled to keep the excess as commission; discouraged in most states illegal in many
Net Listing
Meeting of Minds or Mutual assent - all parties agree
Offer and Acceptance
A non-exclusive listing, given by a seller to as many brokers as he or she chooses. If the property is sold, a broker is entitles to commission only if he or she is the procuring cause of the sale
Open Listing
The right to buy, sell, lease, rent, or exchange real property for specific terms within a specified timeframe. This is an unilateral contract binding only the seller
Option
Money given by the optionee to the optioner at the time the option is granted
Option Money
A property for which a broker hold a signed listing agreement with a seller that in not entered into the multiple listing service (MLS)
Pocket Listing (same as open listing)
A right that gives the holder the chance to buy or lease property if the owner decides to sell of lease it after receiving a bona fide offer from a third party.
Right of First Refusal
The federal law that makes in illegal for real estate brokers to set uniform commission rates (price fixing) and prohibits other acts of collusion that could limit free competition in the marketplace
Sherman Antitrust Act
A law requiring that certain action be taken within specified time after the occurrence of the event
Statute of Frauds
A contract that is legally binding on only the one party who mad the promise
Unilateral Contract
Money or other valuables such as contributed labor, or good consideration, as with a gift (aka love and affection).
Valid Consideration
Legal classification of a contract that is binding and enforceable in the court of law
Valid Contract
Having no legal force or effect, e.g., a contract with an illegal purpose.
Void Contract or Invalid Contract
A contract that one of the parties can disaffirm because it lack a legal requirement or there’s a negative factor, such as fraud or duress
Voidable Contract
