Chp 11 Real Estate Contracts

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Author:
IQ
ID:
229995
Filename:
Chp 11 Real Estate Contracts
Updated:
2013-08-14 14:17:01
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Real Estate
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Real Estate
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  1. Any provision added to an existing contract
    without altering the content of the original. Must be signed by all parties.
    Addendum
  2. A change to the existing content of a contract
    (i.e., if words or provisions are added to or deleted from the body of the
    contract). Must be initialed by all parties.
    Amendment
  3. The transfer in writing of interest in a bond,
    mortgage, lease, or other instrument.
    Assignment
  4. See contract.
    Bilateral contract
  5. Violation of any terms or conditions in a
    contract without legal excuse; for example, failure to make a payment when it
    is due.
    Breach of contract
  6. (1) That received by the grantor in exchange for
    his or her deed. (2) Something of value that induces a person to enter into a
    contract.
    Consideration
  7. A provision in a contract that requires a
    certain act to be done or a certain event to occur before the contract becomes
    binding.
    Contingencies
  8. A legally enforceable promise or set of promises
    that must be performed and for which, if a breach of the promise occurs, the
    law provides a remedy. A contract may be either unilateral. By which only one
    party is bound to act, or bilateral, by which all parties to the instrument are
    legally bound to act as prescribed.
    Contract
  9. A new offer made in response to an offer
    received. It has the effect of rejecting the original offer, which cannot be
    accepted thereafter unless revived by the offeror.
    Counteroffer
  10. Relevant information or facts that are known or
    should have been known.
    Disclosure
  11. Money deposited by a buyer under the terms of a
    contract, to be forfeited if the buyer defaults but to be applied to the
    purchase price if the sale is closed.
    Earnest money
  12. The interest held by a vendee under a contract
    for deed or an installment contract; the equitable right to obtain absolute
    ownership to property when legal title is held in another’s name.
    Equitable title
  13. The trust account established by a broker under
    the provisions of the license law for the purpose of holding funds on behalf of
    the broker’s principal or some other person until the consummation or
    termination of a transaction.
    Escrow contract
  14. A contract in which all parties have fulfilled
    their promises and thus performed the contract.
    Executed contract
  15. A contract under which something remains to be
    done by one or more of the parties.
    Executory contract
  16. See implied agreement.
    Implied contract
  17. See installment sale.
    Land contract
  18. An amount predetermined by the parties to a
    contract as the total compensation to an injured party should the other party
    breach the contract.
    Liquidated damages
  19. Substituting a new obligation for an old one or
    substituting new parties to an existing obligation.
    Novation
  20. Two essential components of a valid contract; a
    “meeting of the minds.”
    Offer and acceptance
  21. An agreement to keep open for a set period an
    offer to sell or purchase property.
    Option
  22. The practice of one party canceling or
    terminating a contract, which has the effect of returning the parties to their
    original positions before the contract was made.
    Rescission
  23. That part of a state law that requires certain
    instruments, such as deeds, real estate sales contracts, and certain leases, to
    be in writing to be legally enforceable.
    Statue of frauds
  24. In the seller breaches a real estate sales
    contract, the buyer may sue, asking the court to force the seller to go through
    with the sale and convey the property as previously agreed.
    Suit for specific performance
  25. A phrase in a contract that requires the
    performance of a certain act within a stated period of time.
    Time is of the essence
  26. A contract that has all the elements of a valid
    contract, yet neither party can sue the other to force performance of it. For
    example, an unsigned contract is generally unenforceable
    Unenforceable contract
  27. A one-sided contract wherein one party makes a
    promise so as to induce a second party to do something. The second party is not
    legally bound to perform; however, if the second party does comply, the first
    party is obligated to keep the promise.
    Unilateral contract
  28. A contract that complies with all the essentials
    of a contract and is binding and enforceable on all parties to it.
    Valid contract
  29. A contract that has no legal force or effect
    because it does not meet the essential elements of a contract.
    Void contract
  30. A contract that seems to be valid on the surface
    but may be refected or disaffirmed by one or both of the parties.
    Voidable contract

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