chapter 33

What is the difference between an addendum and an amendment?

An addendum to a real estate contract is a document that is attached to and made part of the original contract. An amendment is a change in terms to an already agreed upon, fully executed contract.

When does an offer become a contract?

An offer becomes a contract when the offer is accepted, that acceptance is communicated to the other party, and all signatures and initials are obtained from both parties.

If an offer is accepted and notice is given by USPS mail, when is the offer considered to be communicated?

As it is placed in the mail

There are two Acts that have made electronic signatures legally possible

Electronic Signatures in Global National Commerce Act (ESIGN) and Uniform Electronic Transactions Act (UETA).

Amendment forms come in various styles and formats, but typically provide the following information:

Names of the parties Property description Effective date of agreement Clause from agreement to be amended with relevant information Signatures of all parties, agreeing to the change

Describe the process of making an offer.

When there is a buyer who wants to put an offer on a house, the licensee sits down with the buyer to fill out a sales contract form. When the buyer has included all details, such as financing, closing date, and other considerations on the contract form, he or she signs the document, it is delivered to the seller or listing agent, and there is an offer.

amendment

a change to an already agreed upon contract

addendum

a document that is attached to and made part of the original contract

Options for the Seller on an Offer

(1) The offer can be accepted which would make the offer a contract. (2) The offer could be rejected. (3) The owner will make a counteroffer (4) The sellers could also fail to act

The salesperson should always think the first offer the buyer makes should be his or her

best offer

Although the UETA and ESIGN do not mandate the use of a specific electronic signature program, they have outlined four requirements for an electronic signature to be valid.

intent consent signature association appropriate records

South Carolina Unfair Trade Practices Act (SCUTPA)

protect the public from deceptive, false, and misleading business, including real estate

original

s a contract with original signatures.

Fraud

s an act of deception which was done deliberately by someone to get an unfair advantage over someone else

Misrepresentation

s created when a licensee made a misleading statement or a false statement that was accepted as fact from a customer or client and the person was damaged by relying on that information.

Puffing

the practice of exaggerating the value of a property or business for promotional purposes can also refer to promotional statements that are subjective rather than objective in nature

Offers and counteroffers can be terminated in a variety of ways, including:

Rejection Counteroffer Expiration Revocation Death Operations of law