BLAW 3314

what are the four types of listing agreement?

1. exclusive right to sell 2. exclusive agency 3. open or non-exclusive agency 4.net-listing

Specific Performance

A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm. Both parties must have signed the contract to be able to get specific performance.

statue of repose

A law that extinguishes a right of action after a specified period of time has elapsed, regardless of whether the cause of action has accrued.

Compensatory Damages

A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party. Compares contract price and market price at the time of the breach

RESPA

A part of RESPA particularly is to explain to a buyer what the closing costs would be, but also to prevent arrangements where a party and a real estate transaction was given a bribe by someone who wanted business, like a title company or a bank. These agreements to violate the law can be oral.

right of first refusal

A written agreement by which the holder of the right possesses a future option to purchase property prior to its sale to a third party.

bundle of sticks

Bundle of intangible rights associated with the ownership and the use of the site and improvements. These rights an be divided and distributed among multiple owners and nonowners. you can give someone the right to take the water; sell mineral rights; lease the surface; etc.

Fee simple

Bundle of sticks, when you own land, what you really own is the collection of interests. Fee simple describes a landowner's complete and total ownership of a piece of land and all properties on it. o You can occupy and use. o Build o Grant easements o Mortgage o Exclude others. o Sell, or refuse to sell. o Give away or abandon. o Rent or lease. o Among others.

American Rule

If a contract has been signed but only one of the party has insurance, the insurance company should also pay the non-insured party because what they are insuring is the property. So once entered into a contract and signed, and there is a loss, and the non-insured property has the loss, the insurance party should paid them because they are insuring the property and property has now changed hands.

Presumptions of Delivery

If a person dies and a deed is executed, signed by them and recorded before they die, there is a presumption that delivery was made during life.

Statue of Frauds

Need to be in writing to be enforceable including contracts for the sale of land.

Remedy: Recission

One or both parties are in breach and they agree to call the deal off, or at least one party wants. Entitled to get back their money or land. Restores the parties to the condition they were in prior to execution of the agreement.

rectangular block

Texas DOES NOT use this system; township, section; described by fractional shapes of each section

exclusive right to sell

The most favorable to the listing broker, giving him the right to a commission if the property is sold by anyone, even the owner during the term of the listing agreement.

breach of implied warranty

The original purchaser could bring contractual and implied warranty claims well beyond the 10-year statue of repose period for the filing of tort claims. The statue of repose statute of limitations is inapplicable to contract based breach of implied warranty claims. Subsequent buyers must sue within three years of when they discover the house has defects.

Fraud of Execution

They lie to you about what you're signing.

compensatory damages

Types of damages where the buyer or the seller breaches and compare the sales price to the market price at the time of the breach.

fraud in the inducement

You willingly sign without knowing what you signed, but you get tricked.

Tenancy in common

a form of joint ownership that exists when two or more people own real property together. The interests of the tenants don't need to be equal, and they can accrue under different titles or at different periods.

remainder

a future interest in land. It is the right to own and possess the land after the fixed interest of current holder expires. Thus, a remainder can follow a life estate or a term of years.

Covenant against encumbrances

a legal promise made by a seller to a buyer that the property being sold is free from any liens or other claims that could prevent the buyer from enjoying full ownership of the property

statue of frauds

a statute requiring certain contracts to be in writing and signed by the parties.

Adverse Possession

a statute that gives legal title ownership of land to a trespasser over the original property owner. Typically, a trespasser who has lived on a piece of property for the required period files a title action and notifies the owner.

good and marketable title

a title free from any claims or disputes about the ownership, or from any threat of litigation.

lot and block

based upon reference to subdivision; sometimes there's a reference to a map

Warranty of Habitability

basically says everything works in a house

remedy of specific performance

both parties have the right to sue each other to make them pay the money or convey the land

Vendee's Lien

buyer can enforce a lien against the property to get his money back if seller cannot convey good title.

exclusive listing agency

entitles the broker to a commission even if he or any other broker sells the property , but not if the property is sold through the efforts of the owner.

Metes and Bounds

going around the property and writing down all seen within property. Describes a specific piece of ground using distances, angles, bearings, and directions.

Extension Clause

helps the broker where the broker shows the property to a prospect, and then after the listing agreement ends that prospect buys the property. The seller might say, I don't know the commission because the property did not sell the regular listing period. Seller still has to pay the commission even if its sold until after.

Life Estate

land interest where you get to enjoy the interest in the land or acquire the income from it for life; if guarantor doesn't say who it goes to, it goes BACK to the grantor (reversion)

does the agent always represents the buyer?

no, a buyer must enter into an agreement to owe fiduciary duties. Otherwise, the agent will be cooperative or selling agent and represents the seller and it's a sub seller of a seller's agent.

Marketable Title

one that will Pass easily in the market place and that a buyer will be willing to buyer would be willing to buy knowing that he could sell it easily if he had to and the bank would take a security because they had to foreclose they could sell it.

Risk of loss

part of equitable conversion, when you sign a contract to buy real estate, passes to the buyer, and the right to the buyers money passes to the seller. Can be relevant when the property gets destroyed or damaged, then the buyer must suffer that loss, not the seller.

risk of loss

part of equitable conversion, when you sign a contract to buy real estate, passes to the buyer, and the right to the buyers money passes to the seller. Can be relevant when the property gets destroyed or damaged, then the buyer must suffer that loss, not the seller.of Loss

conditions

party conditions their performance in order to be able to do something like get a loan, or a property pass the inspection. For example, it is permissible for a buyer to sign a contract, but condition their performance on being able to sell their existing house.

As Is Clause

refers to a term used in sales contracts where the buyer agrees to buy a product in its current condition, without legal recourse should the buyer discover a defect in the product after purchase. IF A DEFECT IS VERY SERIOUS SUCH AS MOLD, YOU CANNOT HIDE BEHIND THE AS IS CLAUSE

Delivering deeds

requires both intent and delivery

Vendor's Lien

right of a seller to repossess the property sold until the buyer makes all payments for the full purchase price. Most states woulg dive a lien against the property even if it is not listed in the deed.

Joint Tenancy

right of survivorship, automatically goes to the survivor

Equitable Conversion

risk of loss passes to the buyer when the contract is signed, if one of both parties dies the parties would change hands. So, the seller would become entitled to the buyer's money and the buyer to the property.

open or non-exclusive listing

seller agrees to pay a commission only if the broker is the first to procure a buyer, if the property is sold through the efforts of the seller or anyone else, the broker has no claim.

earnest money

shows the seriousness of the buyer, which is a little more of the down payment. If the buyer walks away, earnest money is lost.

Abstracts of title

summaries of what is in the public records relating to the history of the particular a tract of land.

warranty of first time purchaser

the builder fixes anything wrong with the house

Granting Clause

the clause in a deed that lists the grantor and the grantee and states that the property is being transferred between parties. Most important clause of a deed. The MOST important clause in a deed.

Net lisitng

the seller agrees to accept a specified price for the property and the broker receives any amount paid over that price.

liquidated damages

type of damages put into the contract that either party would pay in the event of a breach

reversion

when grantor doesn't provide for where a remainder goes after the life estate, then it goes BACK to the grantor

does the agent always represents the seller?

yes