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