Chapter 29

The Georgia statute of frauds the following must be in writing

(1) A promise by an executor, administrator, guardian, or trustee to answer damages out of his own estate;(2) A promise to answer for the debt, default, or miscarriage of another;(3) Any agreement made upon consideration of marriage, except marriage articles as provided in Article 3 of Chapter 3 of Title 19;(4) Any contract for sale of lands, or any interest in, or concerning lands;(5) Any agreement that is not to be performed within one year from the making thereof;(6) Any promise to revive a debt barred by a statute of limitation; and(7) Any commitment to lend money.

Interpleader

A course of action when two contesting parties cannot reach an arbitrated agreement; A legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.

Specific Performance

A legal action to compel a party to carry out the terms of a contract.

licensee (Pennsylvania)

A licensee is essentially a scribe who put the terms of a real estate contract into a prepared format. The licensee cannot negotiate on behalf of, or represent, either party in the real estate transaction.

Offeree

A person to whom an offer is made.

Offeror

A person who makes an offer.

counteroffer

A response to an offer to enter into a contract, changing some of the terms of the terms of the original offer. A counter offer is a rejection of the offer (not a form of acceptance), and does not create a binding contract unless accepted by the original offeror.

Stature of Frauds

A state law, based on an old English statute, requiring certain contracts to be in writing and signed before they will be enforced at law, e.g., contract for the sale of real property.

Parol Evidence Rule

A substantive rule of contracts under which a court will not receive into evidence the parties' prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract. "four corners doctrine"

the agreement of sale

A written agreement or contract between seller and purchaser in which they reach a "meeting of mind" on the terms and conditions of the sale. The parties concur; are in harmonious opinion.

addendum

Additional pages of material that are added to and become part of a contract.

Extrinsic Evidence

Any evidence not contained in the contract itself, which may include the testimony of the parties, additional agreements or communications, or other information relevant to determining the parties' intent.

compensatory damages vs liquidated damages

Compensatory damages are intended to compensate a party for injury sustained or make good or replace a loss caused by a wrong. ... Liquidated damages are those specified in a contract in the event of a breach.

statue of limitations

Each state has a statute of limitations, or time limit, on how long a person can wait before filing a lawsuit to assert a legal claim. The statute of limitations on written contracts varies between four and ten years depending on the state. If the claimant waits longer than the statute of limitations allows, their claim is barred, and the contract is terminated by operation of law. A party cannot bring an action after the statute of limitations elapses.

offer and acceptance

Elements required for the formation of a legally binding contract. The expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms.

escrow account

Escrow means that the funds are not commingled or mixed with the personal money of the escrow agent. Escrow money is sacrosanct.

FHA MIP

FHA loans require borrowers to purchase mortgage insurance, designed to protect the lender if the borrower defaults on the loan.

liquidated damages

In order for liquidated damages to be awarded, there must be a clause written into the contract itself spelling out the amount of liquidated damages, what the damages are meant to cover, and that both parties understand these are liquidated damages.

liquidated damages

In order to collect liquidated damages, the earnest money clause and the default clause have to be written with specific language, with each state having its own law as to the required language.

commingling

The illegal mixing of personal funds with money held in trust on behalf of a client.

novation

The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties.

conversion

The unlawful appropriation of another's property, as in the conversion of trust funds.

amendment

actually changes a term of the real estate contract. An amendment must be signed by both parties, just like the real estate contract,

collateral contract

are agreements to enter into a contract, but money is exchanged for the right to enter into the contract.

compensatory damages

are meant to compensate the wronged party. It's a monetary award to make the party whole again. limited to money actually lost during a transaction that went bad.

operation of law

attaching of certain consequences to certain facts because of legal principles that operate automatically as contrasted with consequences that arise because of the voluntary action of a party designed to create those consequences

what is contained in a letter of intent

basic terms of the real estate contract

how are compensatory damages limited in contract cases?

can't claim damages for duress

earnest money

cash held by a third party to guaranty that the buyer completes the transaction.

while inspecting the buyer breaks a pipe and damages the home what can the seller sue for?

compensatory damages

letter of intent

essentially, an agreement to make a contract.

partial performance

is when one party performs their obligations under the contract but the other party does not. It can also refer to a situation where a party to the contract performs some, but not all of their obligations.

impossibility of performance

means that there is no physical way the transaction can be completed. Impossibility does not mean it is impossible because one party does not want to complete the transaction, but rather that it is physically impossible.

what is required to obtain liquidated damages?

must be written in the contract

Conditions Precedent

usually involves the condition of the real estate

lease for lease agreement

when the buyer believes they may be able to afford to buy down the roaD