Section 21

Shirley is explaining the termination option to her buyer client. How would she explain that "time is of the essence" is for the termination option?

"This means that if the seller doesn't decide by the deadline, the buyer is no longer held to the contract."

What is the statute of frauds?

A law that requires that contracts conveying the ownership or interest in real property must be in writing to be valid and enforceable

Damian enters into a contract to sell his home to Lori, who puts down a $5,500 earnest money deposit. At the last minute, Lori backs out of the deal. Damian keeps the earnest money deposit. Of what is this an example?

Accepting liquidated damages

The parties entered into the agreement as a free and voluntary act, without undue influence or duress.

Consent

This occurs when the parties enter into the agreement with a full understanding of the contract terms, including price, in writing.

Offer and acceptance (aka mutual agreement)

What constitutes a breach of contract?

One party fails to meet the obligations of the contract.

an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. Of what is this an example?

Partial performance

The buyer purchases a pre-owned home.

Residential contract

Broker Stacy forms a listing agreement with owners Gail and Henry Macke. Which of the following parties must sign this agreement?

Stacy, Gail, and Henry

The brokerage agreement is an...

employment contract between a broker and a client.

achieved when parties have met all the terms.

executed contract

When the consumer signs a buyer's brokerage service agreement, this signifies...

the consumer's acceptance of the relationship terms with the broker.

A seller contracts with a licensee for a set term. If the seller finds a buyer without help, the licensee won't receive a commission.

Exclusive listing

The parties have the capacity (both legal and mental) to enter into a contract.

Legal competency

In Oklahoma, a contract that a seller and a broker enter into is called a _____.

Listing agreement

What kind of contract is used when a buyer purchases property for business purposes in Oklahoma, like an office building or theater?

A commercial sales contract

In this type of contract, the tenant pays a down payment that may be incorporated into the monthly rent payment. This contract's terms and conditions are negotiated at the time the lease is signed. Which type of contract is this?

A lease-purchase contract

Larry and Tina are buying their first home together near Norman. They find a beautiful, 25-year-old three-bedroom home on a lake. The sellers have taken excellent care of the property, and Larry and Tina decide to make an offer on it. Which contract should they use?

A residential contract

When entering into an exclusive right-to-sell agreement, you must disclose the _______ to the seller.

Amount of commission you will collect on the sale of the property

The buyer purchases property that's used for business (e.g., office building or theater).

Commercial property contract

What must be disclosed in an exclusive right-to-sell contract?

Commission amount

Valuable consideration may be an exchange of money for a promise, an exchange of an item of value for money, or an agreement between the parties to do or to not do something

Consideration

The buyer makes payments directly to the seller, who keeps the title until the loan is paid off.

Contract for deed

The brokerage agreement between broker Duncan and his client, Lena, states that it will expire on October 3 of this year. On that day, their agreement will have terminated by _____.

Contract term

In Oklahoma, the statute of limitations for suing someone based on a written property contract is ______.

Five years

Christine had barely accepted an offer from Lance before she changed her mind about selling the house. What will happen to Lance's deposit that he submitted with his offer?

It will be returned to Lance since Christine is breaching the contract.

The buyer purchases a home that's newly built or still being built and hasn't been owned before.

New home construction contract

When can specific performance be enforced under a sales contract?

One party didn't meet the terms of the contract in the specified timeframe, and is now being required to do exactly what was agreed to in the contract.

A seller casts a wide net for buyers and has verbal agreements with several licensees. The one who brings the buyer gets the commission.

Open listing

Sue Ellen has a contract to buy Roger's house, which she has always admired, when Roger decides he's ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario?

Performance

The owner of ABC Construction entered into a contract to build two homes for brothers Jack and John. The contract specified that the homes must be completed by April 1. ABC finished the homes on March 30. Of what is this an example?

Performance

Zack enters into a contract to buy Olivia's home. Per the terms of the contract, Zack must put down a $10,000 earnest money deposit and have the property inspected within five days. In reality, he puts down a $12,000 deposit and has the property inspected within two days. Of what is this an example?

Performance of the contract

Drew and Hank were camping at Hank's riverfront cabin in Eagletown. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?

Real estate contracts must be in writing.

What phrase do many real estate contracts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates?

Time is of the essence

Jerry is meeting with a prospective buyer client, Anna. After he's provided Anna with the necessary disclosures, Jerry is ready to present Anna with a buyer's brokerage service agreement. What will he say is the purpose of the contract?

To identify the terms of the buyer brokerage relationship

This type of contract is used in the sale of undeveloped property (no improvements have been built upon it). These contracts often involve issues like subdivisions, feasibility studies, and/or percolation tests. Which type of contract is this?

Vacant land

In contract law, when does partial performance occur?

When a party does some, but not all, of what the party has agreed to do

What is a listing agreement?

a legally binding employment contract the seller of a property and a real estate licensee enter into.

A contract involving an exchange of promises or other consideration (monetary) between two parties

bilateral contract.

Contracts conveying the ownership or interest in real property must be

in writing.

Claire is entering into an agreement with a new client, Elliott, to help him look for a property to call his own. What type of contract will Claire use to identify the terms of her brokerage relationship with Elliott?

Buyer's brokerage service agreement

A seller contracts with a licensee for a set term. The licensee will receive a commission regardless of the source of the buyer.

Exclusive right-to-sell

What does "performance of a contract" mean?

Meet all of the terms of a contract.

Hannah, a licensee, wants to purchase a home her brokerage has listed. What must she do?

Disclose her licensed status to all parties and get the sellers' approval.

Serena, a licensee in Norman, has decided to place her current home on the market. In order to stay on the right side of the law, what must she do?

Disclose her licensee status in advertising and to all other potential parties to a transaction.

Oklahoma licensee Marcus and his client Trinity have both signed the listing agreement. Marcus also needs to provide a copy of the _______ to Trinity.

Disclosure to Seller or Buyer of Brokerage Duties, Responsibilities, and Services

To meet the requirements of the statute of frauds, agreements in Oklahoma must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable.

Identify the contracting parties

In a Oklahoma real estate contract, "time is of the essence" means that the parties agree to proceed ______ and not unduly delay the process.

In good faith

Contracts must be written for a legal purpose; any contract for an illegal purpose is void.

Legal purpose

In Oklahoma, if a purchase agreement isn't in writing, it isn't _____.

Legally enforceable

Nadine is a first-time buyer who just submitted an offer and an earnest money deposit on a cute little condo close to town. How can Nadine ensure that if the contract falls through by no fault of her own, her deposit will be returned to her?

Make sure both parties sign a written contract.

A listing brokerage agreement in Oklahoma _____.

May be oral or in writing

a partially performed sales contract that otherwise contains all of the essential elements?

The contract is voidable.

What does the phrase "time is of the essence" mean with regard to a real estate contract?

The parties agree to proceed in good faith and not unduly delay the process.

What is the purpose of a listing agreement?

to give the licensee the right to offer the property for sale.

only one party makes a promise.

unilateral contract

isn't a contract at all because of a lack of legal force or effect.

void contract

missing one or more essential elements, or may contain a mistake or misrepresentation. The cause isn't always intentional. It can be a mistake or oversight. It isn't enforceable and is subject to the right of rescission.

voidable contract