Level 14 Level 16
Level 15

Real Estate Contracts


93 words 0 ignored

Ready to learn       Ready to review

Ignore words

Check the boxes below to ignore/unignore words, then click save at the bottom. Ignored words will never appear in any learning session.

All None

Ignore?
Listing Contracts
In a real estate office these contracts are the property of the broker
Purchase Agreement
Prior to acceptance these are considered offers
Implied Contract
Pumping gas prior to paying is an example of this type of contract
Acceptance
Notification and delivery to buyers of their signed offer by the seller
Exclusive Right To Sell
Type of listing stating, regardless of who procures the buyer, the listing broker gets paid
Open Listing
One the real estate firm who procures the buyer gets paid by the seller
Voidable Contract
A contract with a minor
Unilateral Contract
An option is an example of this type of contract
Specific Performance
A court order requiring a promise make to be carried out
Net Listings
Because of the uncertainty of the selling price, this type of listing is prohibited in most states
Consideration
A legal requirement to create a valid contract that be good and signed by an offeror or valuable
Expressed Contract
A contract in which the parties state the exact terms
Counteroffer
This act by the offeree invalidates an original offer
Contingency
A termite inspection is an example of this prerequisite to settlement
Optionor
The person who owns the property and has a signed an option contract with a potential buyer
Vendee
The buyer in a land contract for deed
Contract
Occurs when 2 or more legally competent parties mutually agree, of their own free will, to do or
Statue of Frauds
a state law that provides that real estate contracts, with very few exceptions (a lease for
Express Contract
occurs when the parties communicate their intentions to each other either in writing or
Valid Contract
is one that contains the 4 essential legal elements: competent parties, mutual assent,
Void Contract
is not a contract at all, and never was.
Rescind
the right of the injured party to disaffirm or choose to complete the contract according to the terms
Enforceable Contract
contract creates obligations each party must fulfill
Executory Contract
is one in which one or both parties have not yet performed
Executed Document
the final step... the deed
Bilateral Contract
Both parties make promises and therefore incur obligations. For each promise made there is a
Legal Capacity
the legal ability to enter into a contract
Minor
state law determines the age of majority (usually 18)
Mentally Incompetent
when a court or doctor declares an individual to be of unfit or unsound mind and judgement
Intoxicated
Under the influence of alcohol or drugs
Power of Attorney (POA)
one person (the principal) can authorize another person (the agent) to act on his/her behalf
Court Appointees
persons appointed by the court to act as administrators, trustees or guardians and receive
Mutual Assent
an expression of mutual agreement manifested by an unconditional acceptance of all terms and
Actual Communication
oral or written communication to the offer or that the offerer has accepted the offer
Constructive Communication
communication by operation of law. when an offer is made through a courier, such as
Innocent Misrepresentation
misstatements of fact made without any intention to deceive another person and
Actual Fraud
when there is a deliberate and malicious misrepresentation of a material fact, made with the intent
Negative Fraud
the definition of fraud also includes the concealment of important information
Constructive Fraud
when there is no intent to deceive or mislead the other party, but material facts are
Puffing
an innocent exaggeration that does not fool anyone
Mutual Mistake
when both parties of a contract are mistake about certain facts vital to the contract, there is no
Lawful Purpose
the purpose of a contract must be within the guidance of the law. If the purpose of the contract is
Parol evidence rule
Relates to the fact that written agreements always take precedence over oral agreements
Executed Contracts
Contracts that are usually performed immediately.
Time is of the essence
This phrase means that all time limits in the contract must be strictly observed
Supervening Illegality
When the obligations under the contract become illegal or legally impossible to perform due
Mutual rescission
When the parties to a contract discharge their obligations by mutually agreeing to cancel
Novation
Is the substitution of a new obligation for an old one, in effect the old contract is terminated and
Destruction of the property
Gives the buyer or seller the option of canceling the contract if the property is
Operation of law
A party may unilaterally resend contract if any of the party was induced by fraud
Assignment of contract
Is the transfer of one's rights and obligations under a contract to another party
Breach
Failure to perform according to the terms of a contract
Liquidated damages
The monetary amount in which an injured party is entitled to receive if the other party is
Tender
When I buyer is suing a seller they must first file tender which is a formal offer to perform under the
Rescission
Is the canceling of a contract and the returning of the parties to the original positions
Unilateral Rescission
Is when the injured party decides to rescind, the other party is notified and any payments
Statute of limitations
Defines the time within which an injured party has the right to seek a legal remedy
Land contract
A contract in which the buyer typically makes a small down payment takes possession pays the taxes
Escrow agreement
A contract between parties to a real estate transaction which provides for the deposit of
Doctrine of relation back
Allows the transfer of title to relate back and become effective at the time the
Liquidated damages ( to the seller)
injured party wishes to claim escrow deposit.
Net listing
acceptable minimum amour the seller will accept for their listing.
The ACT of assignment is is done through..
Novation
An option contract is...
a unilateral contract to keep open for a specified period of time.
Procuring cause
is the chain of events that result in a sale.
4 types of contracts a real estate licensee may prepare
1) listing agreement
Listing agreement
broker's employment contract with a seller
buyer brokerage contract
employment contract with buyer
Sale and purchase contract
may be prepared by the sales associate if the licensee acts as an agent or
licensees may NOT draw..
Deeds
what legal documents may licensees fill out?
They may only fill in the blanks on Fl Supreme Court pre approved
Four essentials of a valid contract
CLOC(k)
Contracts covered by Florida's statute of frauds
OLD LP
Exception to the "in writing" provision in the statute of frauds
when a buyer has paid part of the purchase
Statute of limitations of written and oral contracts
written-5 years
is a parol contract enforceable in a court of law?
Even if it contains the four essentials of a valid contract,
two types of consideration
Valuable (Money)
Elements of a valid AND enforceable real estate contract
COLIC
Real estate contracts are not required to
to be witnessed or notarized, nor do they require a deposit
formal contract
is written user a seal
informal contract
is an oral (parol) contract
express contract exists..
exists when all of the terms and conditions have been spelled out and a meeting of
implied contrat exists when...
exists when some of the conditions may be reasonably implied.
executory contracts
contracts that are not yet fully performed
executed contract
a contract that has been fully performed
Ways to terminate and offer
WILD CARD
can letters and telegraphic communication be part of a valid contract?
Yes, they can be part of a valid contract
Does assignment terminate a contract?
No, it does not terminate a contract.
Compensatory damages
injured party not only claimed escrow deposit, but also punitive damages.
Material defects disclosure
sellers must disclose anything that affects the value of the residential property
lead based paint disclosure
must be given on houses built prior to 1978
Ad valorem tax
property tax of assessed value
Building code violatio disclosure
seller must disclose if sited for building code violation and is subject to