Term
| Approved Lease Instruments |
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Definition
Listing Agreements - brokers employment contract with seller.
Buyer Broker Agreement - employment contract wtih buyer
Sale and Purchase Conract - contract between buyer and seller. Licensee acts as agent for one or both parties.
Option Contract - Offer to sell or lease real property in the future. |
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Term
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Definition
COLIC
Competent Parties
Offer and Acceptance (Meeting of the Minds)
Legal Purpose
In Writing and Signed (Statue of Frauds)
Consideration (Valuable or Good) |
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Term
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Definition
The legal capacity to contract.
No mental defects or insanity and of legal age to contract. |
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Term
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Definition
| Voidable Contract is a contract, but one of the parties is permitted to avoid any contractual duties due to circumstance. I.E. Age. |
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Term
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Definition
| Does not meet all the required elements of a valid contract and therefore has no legal effect. |
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Term
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Definition
Mutual Assent - the making and acceptance of an offer.
Meeting of the minds - Agree on terms
Contract is formed by acceptance of an offer and communication of the acceptance. |
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Definition
| Provisions spelled out must not be prohibited by law. |
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Term
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Definition
Whatever is given in exchange for someting else.
The obiligation that each party makes to the other to make the contract enforceable.
Good Faith Deposit is not consideration.
Valuable - Money or measured in money
Good - Promise that cannot be measured, love and affection. |
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Term
| In Writing (Statue of Frauds) |
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Definition
Contracts conveying an interest in real property must be in writing and signed to be enforcable.
Purchase and Sale
Option Contracts
Deeds and Mortgages
Lease Agreements for more than a year
Listing Agreemetns for more than a year |
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Term
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Definition
Contracts may be enforced for:
Written contracts - 5 years
Oral (Parol) Contracts - 4 years |
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Term
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Definition
In Written Form.
Promissory Note is a formal contract. |
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Term
| Parol (informal) Contract |
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Definition
Some oral real estate contracts are enforcable.
Oral agreement to buy property and deposit is posted. This action makes the agreement enforeable. |
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Term
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Definition
Obligates both parties to perform in accordance with the terms of the contract.
Sale Contract for example. |
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Definition
Obligates only one party to an agreement.
Option contract for example. |
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Definition
| Exists when all terms and conditions have been spelled out and a meeting of the minds is reached. May be oral or written as long as understanding and agreement are reached. |
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Definition
One in which some or all of the obligations are not stated expressly in words but reasonably implied by acts.
Out to eat, must pay after, implied contract. |
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Term
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Definition
Not fully performed. Something still remains to be done.
Sales contract between signing and closing is executory. |
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Term
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Definition
| All parties have completely performed all obligations and promises in the contract. |
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Term
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Definition
| Person making the offer to purchase. |
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Term
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Definition
| Person receiving the offer to purchase. |
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Term
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Definition
WILD CARD
Withdraw by offeror
Insanity
Lapse of time
Death
Counteroffer
Acceptance
Rejection
Destruction of Property |
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Term
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Definition
Performance - Parties have performed.
Mutual Rescission - both parties agree to discontinue
Impossibility of Perfomance - Performance is impossible. Destruction or death.
Lapse of Time
Bankruptcy
Breach - Party fails to perform. |
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Term
| Remedies for Breach of Contract |
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Definition
Specific Performance - Court orders party to perform as per contract
Liquidated Damages to seller - Amount of damages paid in case of default.
Rescission - Cancellation of the contract and restoration of partites.
Compensatory Damages - Unliquidated damages.
Lawsuit to recover actual monetary loss to either party. |
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Term
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Definition
| Transfer of rights and duties under a contract. |
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Term
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Definition
| person who assigns or transfers legal rights in a contract to another party. |
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Term
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Definition
| person to whom legal rights are transferred or assigned. |
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Term
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Definition
| Substitution of a new party for the original one. Discharge original party from obiligation. |
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Term
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Definition
Written, Oral or implied.
Must include:
Expiration Date
Identification of property
Price and Terms
Fee or Commission
Signature of owner(s)
May not have auto renewal |
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Term
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Definition
| Written legal document designating some person as atttorney in fact. |
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Term
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Definition
Any number of brokers work to sell property.
First to sell earns commission.
Benefit only seller. |
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Definition
One Broker handles transaction.
Seller reserves the right to sell without paying commission. |
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Term
| Exclusive Right of Sale Listing |
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Definition
Broker receives commission regardless of who sells property.
Most advantageous to Broker. |
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Definition
| Seller agrees to sell property for stated acceptable minimum amount or sellers net. |
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Definition
| Clearinghouse. Brokers share commission and cross market properties. |
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Term
| Brokers Compensation: To Be Paid |
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Definition
To be paid:
Current and active license
Employed by Seller/Buyer
Procuring Cause - Person whose efforts effect sale. |
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Term
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Definition
Employment Contract with Buyer.
Beginning and Ending Date
Characteristics of sought property
Brokers obligations
Buyers obligations
Retainer and compensation
Protection Period
Early Termination
Authorized brokerage relationship |
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Term
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Definition
Agreement to keep open an offer to sell or lease property.
Unilateral Contract since optionee can walk away at any time. |
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Term
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Definition
| Property owner granting option. |
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Term
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Definition
| Prospective Buyer granted exclusive rights to buy |
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Term
| Sale and Purchase Contracts |
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Definition
Bilateral Contract
Name of Vendor and Vendee
Legal Description
Consideration
Purchase Price
Financing Terms
Type of deed
Title Evidence
Terms of expenses
Personal property to be left
Date, time and place of closing
Possession Date. |
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Term
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Definition
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Term
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Definition
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Term
| Material Defects Disclosure |
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Definition
| Sellers must disclose material defects concerning property. |
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Term
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Definition
Notification on at least one form indicating what Radon Gas is....
No testing is currently required. |
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Term
| Lead Based Paint Disclosure |
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Definition
Built prior to 1978, must provide disclosure about possiblity of lead paint.
10 day period to test for lead paint must be given. |
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Term
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Definition
Must provide documents regarding association, restrictive covenents and assessments.
Buyer has three days to cancel contract after receipt.
Buyer cannot waive right to void contract. |
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Term
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Definition
| Must provide buyer with ad valorem taxes before or at execution of contract. |
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Term
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Definition
Sellers must disclose in writing prior to closing:
existnece and nature of violation
copy of pleadings
notice that buyer will be responsible |
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Term
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Definition
| Valuable consideration specified in an agreement as penalty for default. |
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Term
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Definition
| Valuable consideration specified by a court to an injured party. |
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