Closing
Date set forth in a real estate contract on which the parties agree to perform all the promises of the contract.
Earnest Money
Money paid by the purchaser at the time the real estate contract is signed. The money may be used as a down payment on the purchase price or may be retained by the seller for damages in the event the purchaser defaults in the contract.
Ernest money does n
Time of the Essence
Provision contained in a contract that requires strict performance of the contract by the date or dates provided therein.
Condition Precedent
Condition in a contract that must be satisfied in accordance with the terms of the contract before one or both of the parties are required to perform their contractual obligations.
Parol Evidence Rule
Rule of evidence that provides that a written agreement is the best and only evidence of the agreement between parties and that the parties are not permitted to bring in oral testimony regarding other agreements concerning the transaction.
Applicable Law
The general rule in most states that a contract for the sale and purchase of real property will be governed by the law of the state in which the real property is located.
Execution
Signature of a party to a legal document. The act of signing a legal document.
Caveat Emptor
A doctrine which provides that a seller, absent some express warranty, is not liable to a buyer or any conditions regarding the title or improvements to the land existing at the time of transfer. "buyer beware
Estoppel Letter
Sworn statement of fact.
Option
A contract by which an owner of property, usually called the optionor, agrees with another person usually called the optionee, that the optionee shall have the right to buy the owner's real property at a fixed price within a certain time on agreed terms a
Electronic Signature
A person's signature created electronically by a computer.
Price-fixing
Two entities setting prices rather than letting the market set the price.
Sherman antitrust act
Prohibits a control or a monopoly the real estate market by two or more persons in real estate
Boycotting
Unfair exclusion from other professional real estate associations by conspiracy to ignore
or not deal with discount brokers or certain advertisers
Allocation markets
An agreement by or between brokers to assign market by geographic location, price, or other
characteristics of real estate market.
Tying agreement
The sale of one product condition on the sale of another product two or more products being tied together.
Penalties in the Sherman Antitrust Act
An individual $1 million and or 10 years jail time,
Corporations $100 million penalty,
Also provides private civil action could mean triple damages attorney fees and all other costs.
Bilateral contract is
Both parties promised to do something; one promises is given exchange for another. A real estate sales contract is bilateral contract because the seller promises to sell a parcel of real estate and delivered how to properly LeBonheur he promises to pay ce
Unilateral contract is
Is a one-sided agreement whereby one party makes a promise in order to induce a second party to do something.
Executory contract
When a real estate sales contract is negotiated and signed by both parties.
Executed contract
When all parties have fulfill their promises in the agreement, the contract is considered to be fully executed. Once closing and the purchase price is paid the deed is delivered and the purchaser has possession of the property
Valid contract
Bided and enforceable on both parties is a legal effect an example is agreements complied with
the essentials of a valid contract the bundle of rights
Void contract is
Has no legal force or effect because it does not meet the essential elements of a contract.
Contract for illegal purposes.
Voidable contract
Seems on the service to be valid but may be rescinded or disaffirmed, by the party who might be injured if the contract work to be enforced example, a contract entered into by minor or
one in which fraud can be proven is usually voidable.
Unenforceable contract is
Has all the elements of a valid contract; however, neither party can sue for performance the other two force performance. For example, an oral listing agreement is on unenforceable.
Express contract
The parties state the terms and show their intention in words. An expressed contract may be oral or written.
Implied contract is
The agreement of the parties is demonstrated by their actions and conduct
A contract is
a voluntary, legally enforceable promise between two competent parties to perform some legal act in exchange for consideration.
Consideration in a contract is
Something of value that induces a person to enter into a contract. Consideration may be valuable example money or good example love and affection.
Five essential elements for a valid contract
1. Competent parties - 18 years of age mentally competent.
2. Offer and acceptance.-This requirement also call mutual assent me the meeting of the minds must occur.
3. Consideration - is an act or promise that is offered by one-party to induce the other p
Accurate description of the property is
In addition to the five elements for all contracts as listed above a real estate sales contract must contain a legal description of the property being conveyed.
Four corners doctrine is
The courts makes every effort to enforce it by determining the intent of the parties from with in the "four corners" of the contract itself with all provisions considered together in the original context
Parole evidence Rule
Prevents admission into court of any prior or simultaneous oral or or written agreement that contradict the terms of the written contract. If for example, the buyer and seller already agrees to the seller with seller will pay for the appraisal fee but the
Assignment
Substitution of parties.
Novation
Substitution of contract.
Discharge of a contract (breached-broken)
1. Partial performance of terms along with a written acceptance.
2. Substantial performance, in which one party has suspected perform the contract but is not complete all the details exactly as a contract requires
3. Impossibility of performance-Not legal
Breach of contract
Is a violation of any terms or conditions of the contract without legal excuse as what I seller breaches a sale contract by not delivered title to the buyer under the conditions stated in the brain. If either party breaches or defaults the defaulting part
If one of the parties defaults on a real
estate sales contract the non-default party may
1. Sue specific performance
2. Terminate the contract and receive the earnest money, releasing both parties from the contract
Liquidated damages
Upon Default if they damage buyer get the earnest money back or a damage seller and Seth's furnace money as liquidated damages all parties are released from further obligations under the contract
Statute of limitations
Allows a specific time limit during which parties to a contract may bring legal suit to enforce their rights. Any parties that do not take steps to enforce his or her right within the time. May lose those lights.
Written agreement most commonly used by brokers and salespeople are
1. Listing agreement,
2. Buyer representation agreements,
3. Real estate sales contract,
4. Option agreement,
5. Contract for deed,
6. Leases,
7. Escrow agreements.
Defaulting party will be liable to the
other party for liquidated damages in the amount equal to the sum of
1. Three times the amount of earnest money,
2. The earnest money,
3. Reasonable attorney's fees,
4. All cost of the suit.
Sales contract
It sets forth the details of the agreement between the buyer, seller.
Establishments their legal rights and obligations it is more important than a deed because the sales contract dictates the content of the deed.
An offer
a prospective buyer, who wants to purchase the property at those terms or at some other terms, is found a contract is signed by prospective buyer. The broker should promptly communicate the receipt of the offer and presented to the seller. At this point,
Counteroffer
Any attempt by the seller to change the terms proposed by the buyer creates a counter offer.
A counteroffer is created by offeree's rejection or offerors revocation.
Acceptance
Must not be changed or qualify to terms of an offer. If it does, the modification becomes a counteroffer, which voids the original offer.
Effective date Of the contract
Is the date on which the communication of acceptance was made.
Equitable title
buyer acquired interest in the land is known as Equitable title.
Commingling earnest money
Money escrow being mixed with brokers personal funds.
Conversion of escrow money
They broker may not use escrow for him or her personal use it is an illegal act.
Option
Is a unilateral contract by which an optionor, generally the owner, gives an optionee, prospective purchaser or lessee the right to buy or lease the owners property at a fixed price within a stated period of time. The optionee must pay an option fee for t
Contract for deed
Sometimes called a land contract, an installment contract or a contract for sale, it is a sales\financing agreement under which the buyer purchases the sellers real estate on time.
Although the buyer obtains possession - under the contract, the seller, al
A lease
Is a contract in which the owner agrees to give possession of all or part of certain real estate to another person for a specified time in exchange for rental fee.
A contract is said to be Bilateral if
There exist a mutual obligation for all parties to perform; that is, one of promise is given in
exchange for another promise.
Void contract
a contract for sale of real estate that does not state the consideration to be paid for the property and is not signed by all parties is considered to....
Max makes an offer on Roberts house, Robert sex, and Max is notified of the acceptance. Both parties sign the sales contract. At this point, Max has what type of time on the property
Equitable Title
A seller gave a listing to several brokers, specifically promising that if one of the brokers found a buyer for the real estate, the seller would then pay a commission to that broker. This offer by the seller is what type of an agreement
Unilateral agreement
In the completion of a promulgated contract form suborbital crossed out and others inserted. To eliminate future controversy as to whether the changes were made before or after the contract was signed the broker should
Have both parties initial or sign in the margin near each change and signing the final contract.
If, after the sales contract is signed, the seller decides not to sell,
The buyer may Institute a suit for specific performance of the contract and/or for money damages
Under the statute of frauds, contract for the sale of real estate must be
In writing to be enforceable under the Texas statute of frauds. Earnest money is not an element of an enforceable contract in Texas.
During the peroid After real estate sales contract is signed but before Title actually passes, the status of the contract is
Executory contract
Earnest money
Is not one of the elements essential for a valid contract.
Ramon has a contract to buy property but would rather let his friend Mark buy instead. If the contract allows, Mark can take over Raymons contract rights by the process known as
Assignment
A method of selling real estate whereby the purchaser pays for the property and regular installment while the seller retains title to the property is called
Contract for deed or installment contract
A suit for specific performance of a real estate contract asks for
Conveyance of property.
When I broker uses a clients earnest money deposit for his or her personal use the broker is guilty of
Conversion
An option - to - purchase agreement is
Generally limited to a fixed price within a specific time period.
The purchaser of real estate under a contract for deed
Required to pay taxes and insurance on the property
In Texas, who is authorized to draft deeds, mortgages, deeds of trust, and notes
Texas attorney licensed to practice law.
Promulagated contract form must be used by Licensee --- with four exceptions
1. Transactions in which a licensee is functioning solely as a principal, and not an agent,
2. Transactions for which a an agency of the United States government requires a different form to be used;
3. Transactions for which a contract form has been prep