Texas Real Estate

Card Set Information

Texas Real Estate
2013-12-12 14:25:47
07 Contracts

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  1. Real Estate Contract
    A written promise to pay, by the buyer, and a written promise to deliver a deed, by the seller
  2. COLIC
    The requirements of a valid and enforceable real estate contract - competent parties, offer and acceptance, legal purpose, in writing, consideration
  3. Valid Contract
    An agreement that meets all the legal requirements of a contract
  4. Competant parties
    Sane, sober, consenting adaults (18 years or older)
  5. Offer and acceptance
    Meeting of the minds or mutual agreement - all parties concerned understand and agree to all the terms of the contract
  6. Consideration
    Something of value given by the party to a contract - the buyer's promise to pay in exchange for the seller's promise to deliver a deed
  7. Statute of Frauds
    A law requiring all real estate contracts to be in writing to be enforceable
  8. Void Contract
    No contract at all - one of the key elements is missing - invalid contract
  9. Voidable Contract
    In the eyes of the law, one party is at a disadvantage and can void the agreement - a minor, someone who signed under the influence of alcohol or drugs, someone who signed under duress
  10. Unenforceable Contract
    Will not be enforced by the courts - oral real estate contract - violates the statute of frauds
  11. Express Contract
    Written or spoken
  12. Implied Contract
    By actions or evidence but not written or spoken
  13. Time is of the Essence
    A clause in a contract that allows each party to hold the other to strict performance on the date specified
  14. Unilateral Contract
    A contract where only one party made a promise, only one party can be sued - if...then...
  15. Option Contract
    A unilateral contract where one party has the option to buy property at a preset price withing a negotiated time period
  16. Option Fee
    An amount paid to secure an option contract - paid upfront, directly to the seller, and never refundable
  17. Bilateral Contract
    An exchange of promises binding both parties
  18. Amendment
    Modification to an existing agreement is made and signed
  19. Addendum
    Additional material or supplemental information added to an agreement
  20. Contract for Deed
    Seller financing with title retention to protect the seller - title is not transferred to the buyer until the full price is paid - also called land contract, installment contract and real estate contract
  21. Novation
    The substitution of a new contract for an existing one - the original agreement is terminated
  22. Assignment
    Substitution of a new party into an existing agreement - can be used to shield the identity of a buyer who wishes to be anonymous
  23. Offer
    A properly completed form with a price less than, equal to, or more than the seller's asking price and signed by the buyer
  24. Counteroffer
    A rejection of an offer and the presentation of a new offer
  25. Earnest money
    A buyer's evidence of good faith, submitted with an offer to purchase
  26. Effective Date of a Contract
    The date on which the last party signed
  27. Fully Executed Contract
    A contract that is signed and carred out - sales contract at closing
  28. Executory Contract
    A contract that has been signed by the paries, but not yet carried out - sales contract before closing, or a contract for deed
  29. Contingency
    A condition in a contract that has not yet been met - financing, inspections, etc.
  30. Mutual Rescission
    The parties to a contract agree to cancel the contract
  31. Default
    Non-performance of a duty under a contract
  32. Breach of Contract
    When one of the parties to the contract is in default
  33. Suit for Specific Performance
    A lawsuit to hold the defaulting party to his duties under a contract
  34. Money Damages
    Compensation awarded to an injured party as a result of a lawsuit against the defaulting party in a contract
  35. Liquidated Damages
    Damages specified in a contract that will be awarded in the even of default
  36. Partial Performance
    An injured party is willing to settle for partial performance of a contract upon default by the other party
  37. Right of First Refusal
    A clause in a lease allowing a tenant the right to match or better any offer before the property will be sold to another party
  38. Lease - Purchase Agreement
    Lease with an option to buy - a tenant has occupancy now and the right to purchase at a specified future date and price