Chapter 4 real estate law

Multiple offers should be presented

At the same time

Brokers cannot draft legal documents only fill in blank spaces on

Attorney approved forms

Assignment

Can transfer your write in a contract to someone else unless there's a clause that says you can't

John vs Mayer 1968

Cannot discriminate racially ever

The sale could not be closed on time according to the original contract both parties wanted to extend the closing date

Change the closing date in the original contract and have all parties initial the change

Addendum / Amendment

Changes original contract

Buyer

Offeree

S owns a property that list the property for sale with a broker the broker finds a buyer who makes an offer on the property s is considered to be the

Offeree

Seller

Offeror

A prospective buyer wanted to have the right to purchase a home at a set price within the next 90 days but didn't want to be obligated to purchase it. Which document would be needed?

Option

Unenforceable

Oral agreement

Right of refusal

Person has first opportunity to buy if I offered for sale or lease person has no right to buy until offered for sale person can buy matching any other offer there is no definite sales price all contract laws apply

What type of contracts cannot be assigned

Personal services like listing agency contracts

lot and block system

Plat map records subdivision on public record

TQ> option

Possibility contract - right to buy at a later date and an option would require all essential elements of a contract to be valid including consideration. Definite time frame, definite sales price

Optionee

Possible buyer

Liquidated damages clause

Pre-arranged damages would every money paid as Earnest seller can keep

Rectangular Survey System

Prevail

Unilateral

Promise for an action one way action option agreement tease to buy I will maybe I will only I

Executory

Promise made but not completed on contract pending

What should a broker do with earnest money

Deposited into an escrow account immediately

Description

Describe the land being conveyed it is a legal description

A seller of a property could not transfer marketable unencumbered title. What should broker do with earnest money

Give it to the buyer

Earnest money

Good faith money

Each had a property for sale for $129,000 B made an offer for $123,000. H made a counter offer for $127,000

H is counter-offer terminated the first offer

Fair housing amendments Act of 1988

Handicap physical or mental not substance abuse

Limited partnership

Limited liability

A legal description that uses a plat map

Lot and block

Develops a new subdivision what type of legal description would be used

Lot and block

Escrow or trust

Where Ernest or good-faith money go

TQ>. Redlining

Where lenders refuse to make loans based on who lives where

Hud's enforcement

Who may file anyone who thinks they have been wrong time limit 1 year to file investigations state laws still apply

If an offer is ridiculous does the broker have to present it

Yes all offers must be presented

Maybe interest-bearing if all parties to contract agree

Yes but all must agree

Can an offer be withdrawn?

Yes up until it's accepted and communicated back.

Metes and Bounds

A good way to define irregular shaped Lots survey measurements Prevail over deed measurements

TQ.4 different ways to change a contract

1 breach, 2 assignment, 3 Novation, 4 addendum / Amendment

Statute of frauds to be in writing to be enforceable

1 real estate sale contract 2 Deeds 3 if the lease is over one year

TQ. Sellers choices if buyer defaults

1. Declare contract forfeited 2. Specific performance suit 3. Rescind 4. Sue for damages

Bilateral

A promise for a promise performance obligations of the parties

Both seller and buyer sign the sales contract before the closing seller and buyer agree to change the closing date

Addendum

TQ.> Civil Rights Act of 1866

All citizens of the United States that have the same right in every state and territory as enjoyed by White Citizens their of inherit purchase Lease sell hold convey real and personal property

Signature

All parties must sign contract if Missouri State signature must have a date

Executed

All promises completed all contract terms have been satisfied contract closed

Can an agent alter or delete any legal information?

An agent cannot alter or delete any legal information

TQ.> 4 exemptions

An owner selling or renting a single family home if the owner does not own more than three Homes at once use a broker or an agent discriminating advertising. Owner-occupied 4-Plex in renting have to live there. Religious organization discrimination on religion not commercial. Private club club members only.

When an option to buy is exercised the contract becomes

Bilateral

What promises do people make in various contracts?

Bilateral and unilateral

An agreement for sale contract has been signed but terms have not been fully performed. Which of the following terms best describes the type and status of this contract?

Bilateral executory

If a salesperson is trying to list the property and tells the seller that the ghetto is moving in this would be

Blockbusting

Expressed

Both parties Express their contracts and writing

Offer and acceptance

Both parties must agree on exact same terms

Breach

Break or tear one of the parties does not perform

The buyer was not able to obtain financing

Broker must return earnest money to the buyer

Who makes the first offer

Buyer

Buyer receives Equitable Title

Buyer has right to deed at closing

Time is of the essence

Buyer or seller dates and times must be met assumed in the timely and promptly matter don't be late

A buyer made an offer on a property a broker had listed. The broker presented the offer to the seller. While the seller was still considering the offer, the buyer contacted and informed the broker that the buyer wanted to withdraw the offer. The broker should

Continue to market the property for the seller

Writing

Contract does not have to be in writing but in order for it to be forcible it needs to be in writing

Three types of voidable contracts

Contract signed by minor Contract signed under duress contract signed due to miss representation

Three ways to syndicate

Corporation, partnership, Real Estate Investment Trust

Implied

Created by your actions don't do this

Metes and Bounds method of giving a legal description uses

Exact distance going in definite directions

How is it determined when the promises have been completed?

Executory and executed

If a buyer asks an agent how they should take a title the agent should

Explain the various types of ownership and have the buyer consult an attorney

Misrepresentation

False ideas about properties fraudulent

Purchaser wanted a clause in a contract to protect against the loss of earnest money in the event a loan could not be obtained

Financing contingency

TQ.> steering

Illegal directing people to certain parts of town

In order to be in compliance with the state of frauds a sales contract must be

In writing

What do you do if an owner tells a licensee not to show the property to minorities

Inform the owner that the licensee cannot legally accept a listing

An individual selling a personal resident who doesn't discriminate in advertising

Is exempt under federal fair housing law of 1968

Counter offer

It is a rejection and a new offer it voids out previous offer

Who could void?

Just the injured party

Legal object

Lawful purpose

TQ. Competent parties

Legal age 18 / sound mind / alive at the time of acceptance

Metes

Length measurements feet inches and yards

Bounds

Markers must always begin and end at a point of beginning have to enclose area

TQ.> four methods of giving legal descriptions

Metes and Bounds, geodetic Survey System, rectangular Survey System, lot and block system

Novation / Nova

New a new contract that takes place of an old contract assumption with release of liability

Is there a right of rescission in a contract

No you cannot back out once it's been accepted

The buyer and the seller agreed to the price and terms over the phone what is the legal effect of this agreement?

Non - enforceable

Declare contract forfeited

Release contract to buyer and keep earnest money

Rescind

Return the parties to the status quo pretend it never happened

Sale of Securities are governed by

SEC security and change Commission

Security license

Sale of investment items to public limited partnership REITs mortgage securities

Optionor

Seller

The distance between the street and the front of the house is known as

Set back

Civil Rights Act of 1968 title 8

Seven protected classes. Race, color, religion, national origin, sex 1974, handicapped 1988, family status 1988

In the process of preparing to present an offer to the seller a broker received another offer the broker

Should present both offers together

When a contract is signed between a buyer and seller the buyer is known to have received actable title upon the happening of which of the following events

Signing of the agreement by the buyer and seller

Consideration

Something of value promise to pay. You do not need to have a contract

A court ordered that a transaction be completed the best term of this legal situation is

Specific performance

Puffing

Subjective opinion exertion not illegal not voidable

A corporation who purchased a piece of property as a co-owner would usually take title in which of the following manners

Tenancy in common

Specific performance suit

The courts take action to force sail into completion

A handicapped person ask the landlord for permission to alter the apartment

The landlord can require that it be restored as if it was before the alteration

What can we put in a contract to ensure timely completion

Time is of the essence

Commingling

To mix escrow and personal funds

A contract where one party is bound to perform but the other party is not would be referred to as

Uni - lateral

General partnership

Unlimited liability

Geodetic Survey System

Using a series of bench markers used all over the country

Four different ways to legally classify contracts

Valid, enforceable, void and voidable

A contract whose purpose is for an unlawful objective would be classified as

Void

What is the usual legal effect of a contract signed between an adult and a minor?

Voidable by minor