Bilateral contract
legally enforceable agreement under which both parties promise to do something for each other
Unenforceable
A person approaches an owner and says, "I'd like to buy your house." The owner says, "Sure," and they agree on a price. What kind of contract is this?
Bilateral contract
both parties to the contract exchange binding promises
Executory
During the period of time after a real estate sales contract is signed, but before title actually passes, the status of the contract is
Void
A contract for the sale of real estate that does not state the consideration and provides no basis on which the consideration could be determined is considered
Transfer of the property
A buyer and a seller sign a contract to purchase. The seller backs out, and the buyer sues for specific performance. What is the buyer seeking in this lawsuit?
Both parties initial or sign in the margin
In a preprinted sales contract, several words were crossed out or inserted by the parties. To eliminate future controversy as to whether the changes were made before or after the contract was signed, near the changes
Equitable
A buyer makes an offer on a seller's house and the seller accepts. Both parties sign the sales contract. At this point the buyer has what type of title to the property?
Contingency
The sales contract says the buyer will purchase only if an attorney approves the sale by the following Saturday. The attorney's approval is a
Illegal
A real estate professional uses earnest money placed in the company trust account to pay for the rent owed on the real estate professional's office. Using escrow funds for this purpose is
Seller
An option to purchase binds only
Land sales contract
under this the buyer will pay the seller $500 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate taxes, insurance premiums, and regular upkeep costs
The purchaser of real estate under an installment contract
has only an equitable interest in the property's title
Under the statute of frauds, all contracts for the sale of real estate must be
in writing to be enforceable
Relieved of the original offer
If, upon the receipt of an offer to purchase a property, the seller makes a counteroffer, the prospective buyer is
Put the deposit in an account, as provided by state law
A buyer makes an offer to purchase property listed with a real estate professional and leaves an escrow deposit with the real estate professional to show good faith. The real estate professional should
Contract is voidable
a person signs a contract to purchase real estate while suffering from a mental illness that causes delusions, hallucinations, and loss of memory
An offer
Professional finds a buyer for seller's home - buyer indicates in writing a willingness to buy the property for $1,000 less the asking price and has deposited $5,000 in earnest money with the professional.The seller is out of town for the weekend, and the
A buyer and a seller agree on a purchase price of $200,000 for a house. The contract contains a clause stating that "time is of the essence.
If the closing date passes and no closing takes place, the contract may be rescinded by the party who was ready to settle on the scheduled date.
Option
An agreement in which a buyer signs a contract under which he is given the right to purchase a property for $130,000 anytime in the next six months. The buyer pays the current owner $500 at the time the contract is signed.