CONTRACTS

A person with a mental impairment would like to enter into a contract for the purchase of a piece of real estate. Which of the following statements would be true?

A person with a mental impairment would like to enter into a contract for the purchase of a piece of real estate. Which of the following statements would be true?

deed

A physical document; proves they have title of the home.

Land Contract

A real estate installment agreement where a buyer makes payment to a seller in exchange for the right to occupy and use property, but no deed or title transfers until all, or a specified portion of, payments have been made.

Exclusive Authorization and Right to Sell Listing

Broker gets paid if property sold regardless of cause.

Time of the Essence

Everything must be done within a specific time.

Bargain and Sale Deed

FOR Tax sale and foreclosure the property is being sold with B&S Deed. Seller doesn't need clear title, no protection from the buyer.

A seller and buyer have agreed to a sales contract. The buyer backs out of the agreement. Which of the following could the seller NOT do?

File for a writ of execution

Grant Deed

Have a clear title to sell and no knowledge of anything that might impact the title.

Option Contract

It is a unilateral contract in that the seller is obligated to sell, but the buyer has the option to buy.

Quitclaim Deed

Least amount of protection for a buyer of your home! It's normally used when a property owner gives a house to someone they have a strong relationship with, for example a father to a son.

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

Signing of the agreement by the buyer and seller

A buyer and seller negotiated a sale whereby the seller was to include all the kitchen appliances. Upon moving in, the buyer discovered that the seller had taken all the kitchen appliances. What would be the buyer's best remedy?

Sue the seller for specific performanc

R made a promise to sell the property to T. T, however, was only obliged to purchase the property if a certain condition was met. Which of the following statements would be true?

This is a unilateral contract where T does not have to perform

A contract whereby either party is not able to sue the other party would be classified as:

Unenforceable

A promise in exchange for a promise, supported by consideration, is the basis for a:

Valid, binding, and bilateral contract..

sublet

When a tenant finds another person to live in his/her leased space.

When does a sales contract become legally binding for the buyer?

When the seller's acceptance is communicated back to the buyer

Novation

a new contract

Statues of Frauds

a state statute that requires certain types of contracts to be in writing

When a change is needed in a contract, the best way to accomplish this would be with a(n):

amendment

Liquid Damages

an amount of money specified in a contract as compensation to be paid if the contract is not satisfactorily completed

Valid Contract essentials

capable parties, lawful object, consideration and offer/acceptance

A listing agent has received several offers on a listed property all at the same time. The listing agent should:

present all of the offers at the same time.

Bilateral Contract

promise for a promise

Unilateral Contract

promise in exchange for an act

In order for a real estate sales contract to be valid, it must include a:

property description

A broker tells a buyer that the broker thinks a particular house is the best in the neighborhood. The buyer purchases the property only to find another property later on that is more desirable. The broker is guilty of:

puffing

Rescission

termination of contract

Knowingly misrepresenting a material fact in a deliberate way so that someone else suffers a loss in an attempt to make money is:

fraud

Constructive Eviction

if landlord fails to perform duties and tenant refuses to pay rent and abandons premise due to the breach of contract

an assignment

is a transfer of contact rights from one party to another.

Exclusive Agency Listing

listing that promises broker will be paid unless owners sell on their own. (BROKER HAVE TO PROVE THEY ARE THE REASON)

Void Contract

A contract having no legal force.

Valid Contract

A contract is one that meets the basic elements of contract law.

Executed Contract

A contract that has been completely performed by both parties.

Exectory contract

A contract that has not yet been fully performed.

Implied Contract

A contract that is not in writing and is lawful because of the actions of the parties and circumstances they are in.

Buyer Broker Agreement

A contract wherein the broker represents a buyer or tenant is called a buyer broker agreement or an exclusive right to represent agreement.

Specific Performance

A court action to force the completion of a contract. Brokers do not sure for specific performance.

Common Title Defects

Contractor lien-Kitchen Remodel Improper transfers-due to past papers work errors. Unpaid Taxes Child Support etc

A good example of a unilateral contract would be a(n):

option contract.

title

ownership

Net Listing

A listing based on the set price the seller will receive if the property is sold. Anything over the set price, the agent gets to keep. (COMMISSION) Illegal in many states.

Listing

A listing hires a broker to find a buyer, not to sell a house.

Abstract of Title

A brief summary of the recorded documents affecting title. Changes of ownership, encumbrances on the property. Etc

Exclusive Listing

A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

Interim Occupancy Agreement

Allows for a buyer to take possession of a property prior to closing of escrow

Open Listing

An agreement between an owner and many brokers. If a broker produces buyer, a commission is due. However, the owner still has the right to sell his/her property and is not obligated to pay a commission to anyone.

Voidable Contract

An agreement that can be rejected, rescinded by either party.

Sale Contract

An agreement whereby one party agrees to sell and the other party agrees to buy according to the terms set forth. Also called a deposit receipt contract, purchase agreement, or contract for sale and purchase.

Counteroffer

An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

When is a purchaser said to have equitable title?

At the signing of the sales contract by both buyer and seller

Four essentials of a valid contract

Consideration Offer and Acceptance Lawful Objects Competent Parties

Special Warranty Deed

Clear title for the time you've owned the home. (Mainly, Used for COMMERCIAL) . Also. Called "Covenant Deed"

General Warranty Deed

Deed that offers the most protection in which grantor fully warrants good clear title to the home. NO ONE ELSE HAS THE RIGHTS TO OWN THE PROPERTY.

Which of the following is created when possession and title do not occur at the same time?

Interim occupancy agreement

A Contract

Is an oral or written agreement to do or not to do a certain.

Sale and leaseback

Selling to rent back. A sale and lease from buyer back to the seller.

As Is Clause

The buyer is buying the property as they see it with all existing conditions.

A lease must contain:

mutual agreement consideration capable parties lawful object

A mortgage contingency usually includes all of the following items EXCEPT:

name of the lending institution

A contract is not completed and binding until it is signed by the:

offeree

A contract that begins as uni-lateral but could end up being bi-lateral is a(n):

option contract

An agent brought an offer to a seller with the seller counteroffering back to the buyer. In the meantime, another offer was brought to the seller with terms more favorable to the seller. The seller's best option would be to:

rescind the first counteroffer before acceptance and then accept the better offer

An agent is working with a married couple in the purchase of a home. The couple asks the agent how they should take title to the property. The agent should say:

see an attorney

Which of the following items would NOT always be a part of a contract for the sale of personal property?

written agreement