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27 Cards in this Set
- Front
- Back
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Contract |
A legally enforceable agreement to do a specific thing. A promise or set of promises the courts will enforce |
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Statue of Frauds |
Requires certain contracts to be written to be enforceable and to be signed by the parties or their authorized agents. |
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Competent Parties |
Legal capable individuals who can enter into a binding contract. 1. anyone under 18 is legally incompetent 2. contracts entered into by incompetents are voidable by the incompetent unless signed by the legal guardian. |
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Valid Consideration |
Money or other valuables such as contributed labor or love and affection (gift) |
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Offer and Acceptance |
All parties must agree to all terms. Also called meeting of the minds. |
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Legal Object or purpose |
one of the elements of a contract. |
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Expressed Contract |
All of the terms have been stated between the parties, either verbally or in writing |
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Implied Contracts |
A contract created from the actions or conduct of the parties. |
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Executed Contract |
All terms have been performed by the parties. |
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Executory Contract |
All terms have not been fully performed. Prior to closing, a signed purchase contract is executory |
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Bilateral Contract |
A promise is made by one party in return for the promise of another. Ex. Listings, purchase contracts, leases. |
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Unilateral Contract |
One party makes a promise to induce other party into action. |
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Option |
The right to buy or lease a property within a specified price and terms. a. the holder of the option may not choose to exercise the right. The option is binding only on the optionor/owner. b. if the optionee wants to extend the option additional consideration is usually required. Property owner says: "I promise to sell if you decide to buy" |
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Right of First Refusal |
allows the holder to match any offer the owner may receive to buy or lease the property. Unlike an option, the holder can only buy the property if it is offered for sale by the owner Property owner says: "if I decide to sell I will give you the first opportunity to buy" |
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Valid Contract |
contract contains all the essential elements |
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Void or Invalid Contract |
no contract at all, not enforceable by law. |
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Voidable Contract |
Appears to be valid but because of a defect could be overturned by one of the parties. One of the essential elements is missing such as competent parties or proper property description. A contract that is signed by a buyer under duress is voidable by the buyer. |
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Illusory Contract |
A contract that is worded loosely or vaguely. Illusory contracts are unenforceable. |
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Listing agreement |
A written employment contract which appoints the broker as the seller's agent for the purpose of finding a buyer. A listing is an employment contract not a contract for the sale of real estate. Listings are bilateral agreements. |
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Open listing |
The listing broker will be paid a commission only if he/she finds a buyer for the property. 1. The listing broker will not be paid if another broker finds a buyer or if the seller sells the property. 2. if more than one listing has been given, they are probably open Listings. 3. In some states an open listing has no expiration date. In Arizona all employment agreements must have an expiration date. |
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Exclusive Agency Listing |
The listing broker will he paid a commission if he/she finds a buyer or if another broker finds a buyer. The listing broker will not be paid if the seller sells the property |
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Exclusive Right to Sell Listing |
The listing broker will be paid if he/she finds a buyer, if another broker finds a buyer or if the seller sells the property. 1. offers the MOST protection for the broker. 2. exclusive Listings often contain a provision which will entitle the broker to a commission if the seller sells the property (within specified time after the listing expires) to a buyer that the broker procured. |
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Multiple Listings |
a service, not a type of listing. Brokers agree to pool their inventory to better serve their sellers |
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Net listing |
seller agrees to take specified amount as net proceeds and broker may retain amount of sales price above net amount. net Listings are legal in Arizona but frowned upon. |
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Option listing |
a listing on a property on which the broker holds an option. |
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Buyer Brokerage Agreement |
A written employment contract in which the buyer hires a broker to assist the buyer in locating and acquiring property |
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Sherman Anti-Trust Act |
Prohibits anti-competitive practices such as: A. different brokerage firms agreeing to fixed commissions or prices. B. Leading a consumer to believe that commissions are non-negotiable. C. Dividing a market into geographical non-compete areas D. boycotting other companies |
