Chapter 9: Real Estate Contracts

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

"Time is of the essence"

This is a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time...?

"Time is of the essence"

In addition to the essential elements of a valid contract, real estate contracts must include which of the following...?

An accurate legal description of the property

One who assigns or transfers property.

Assignor

What are the 4 ways a property can be discharged?

Agreement of the parties Full performance Impossibility of performance Operation of Law

A contract that has been fully performed

Executed Contract

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

Express Contract

A meeting of the minds between two parties is also known as...?

Offer and acceptance

A listing contract exists between a seller and the...?

Real estate broker

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

Sales Contract

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

Specific Performance

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

Valid Contract

A contract in which each party promises to do something is referred to as a...?

Bilateral Contract

What are the 4 essential elements to a contract?

Capable parties Consideration Lawful Objective Offer and acceptance

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

Commingling

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

Earnest money deposit

A down payment made by a purchaser of real estate as evidence of good faith is known as...?

Earnest money deposit

An interest in real estate such that a court will take notice and protect the owner's rights is known as...?

Equitable Title

An agreement that has not been put into words, but is implied by the actions of the parties is known as a/an...?

Implied Contract

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

Implied Contract

When you give your keys to a valet, you assume that the valet will park your car in exchange for a fee. This is because a/an ................... contract was created between you and the valet?

Implied Contract

Damages benefiting the non-defaulting party as a result of a default of a contract are known as...?

Liquidated Damages

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

Novation

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.

Unilateral Contract

This contract is formed only if another party performs the requested act...?

Unilateral contract

To have no force or effect; that which is unenforceable.

Void

The sale of property as an alternative to damages is an example of

Specific Performance

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

Liquidated Damages

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

Listing Contract

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

Statute of Limitations

If one of the parties to a contract wants to withdraw without terminating the contract, which of the following can be used...?

Assignment

One who assigns or transfers property is known as a/an...?

Assignor

A contract in which each party promises to do something.

Bilateral Contract

A violation of the terms or conditions of a contract without a legal excuse is known as a...?

Breach

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

Breach of Contract

Anything given or promised by a party to induce another to enter into a contract is known as...?

Consideration

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

Equitable Title

Real estate agents use which of the following contracts...? Express Contracts Listing Contracts Buyer Representation Agreements All of the above

All of the above

Those to whom property or interests therein shall have been transferred.

Assignee

Those to whom property or interests therein shall have been transferred are known as...?

Assignees

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...?

Assignment

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

Assignment

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.

Consideration

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

Contract

The unlawful appropriation of another's property or earnest money deposit is known as...?

Conversion

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

Conversion

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.

Counter Offer

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

Executory contract

A contract that has been put into words, either spoken or written is known as a/an...?

Express Contract

A contract by which a buyer and seller agree to the terms of a sale is known as a...?

Sales Contract

A contract that has no force or effect is referred to as a/an...?

Void contract

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

Voidable

If a contract is not for a legal purpose it is considered..

a void contract

Which real estate sales contract must be in writing: sales contract lease contract for greater than 1 year purchase contract for a multifamily home all of the above

all of the above

Which contract does not have to be in writing

lease under 1 year

Oral listing agreements between seller and broker are...

unenforceable