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15 Cards in this Set
- Front
- Back
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Unauthorized Practice of Law |
A real estate licensee must not give opinions as to the legal rights or liabilities of parties or the legal effect oft he documents. This could be practicing law without a license. |
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Offer |
the selling licensee prepares a written offer to be signed by the buyer and presented to the seller or the sellers representative |
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Counteroffer |
rejecting the buyer's offer and initiating a new offer that the buyer can accept by signing |
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Common Conditions in Counteroffer |
These may be: - purchase price - terms of loans the seller will be extending credit to the buyer - date of possession - time allowed to obtain financing - contingent sale of another property |
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Time is of the Essence provision |
contract should specify a time for performance; if not specificed, by implication, performance would be required in a reasonable time |
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Earnest Money |
money or property deposited by purchaser at time of signing to show good faith in making the offer
NOT required by law
payable to a third party |
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Liquidated Damages |
earnest money is intended to serve as liquidated damages
an amount of compensation a party should receive in the event the other party breaches the contract |
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Termination |
may be cancelled by mutual agreement of all parties |
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Option |
an agreement granting exclusive right to buy, sell, or lease property at a given price within a stated period of time |
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Unilateral Contract |
only one party makes a promise that could be enforced in court - as an optionor selling the Option to sell his property |
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Irrevocable |
Cannot withdraw - an Optionor cannot revoke the option to sell before the term expires. |
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Right of First Refusal |
First opportunity to buy a property if it ever comes up for sale |
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Short Sale |
transaction where the sales price is not sufficient to cover the debt and obligations encumbering the property; seller is asking the lender to allow them to sell 'short' of the money owed Sellers credit is impacted, but not as much as a foreclosure |
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Home Affordable Modification Program (HAMP) |
program designed to help financially struggling homeowner avoid foreclosure by modifying loans |
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Home Affordable Foreclosure Alternative (HAFA) |
program that provides incentives for completing a short sale |
