Real Estate Chapter 9 (Texas)

"Time is of the essence"

A condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time

Sales Contract

A contract by which a buyer and seller agree to the terms of a sale

Listing Contract

A contract in which a property owner employs a real estate broker to market the property described in the contract

Bilateral Contract

A contract in which each party promises to do something

Executory Contract

A contract in which something remains to be done by one or both of the parties

Valid Contract

A contract that complies with all of the essential elements of a contact, and is enforceable and binding on all parties

Executed Contract

A contract that has been fully performed

Express Contract

A contract that has been put into words, either spoken or written

Earnest Money Deposit

A down payment made by a purchaser of real estate as evidence of good faith

Statute of Limitations

A law establishing the time period within which certain lawsuits may be brought

Counter Offer

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

Assignment

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract

Breach of Contract

A violation of the terms or conditions of a contract without a legal excuse

Contract

A voluntary, legally enforceable promise between two legally competent parties, to perform some legal act in exchange for legal consideration

Specific Performance

An action to compel performance of an agreement, ex: sale of land as an alternative to damages or rescission

Implied Contract

An agreement that has not been put into words, but is implied by the actions of the parties

Equitable Title

An interest in real estate such that a court will take notice and protect the owner's rights

Consideration

Anything given or promised by a party to induce another to enter into a contract, ex: personal services or even love and affection. It may be a benefit conferred upon one party or a detriment suffered by the other

Liquidated Damages

Damages benefiting the non-defaulting party as a result of a default of a contract

Assignor

One who assigns or transfers property

Voidable

That which is capable of being adjudged void, but is not void unless action is taken to make it so

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

Assignee

Those to whom property or interests therein shall have been transferred

Void

To have no force or effect; that which is unenforceable

Commingling

To mingle or mix, for example, a client's funds in the broker's personal or general account

Unilateral Contract

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act