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48 Cards in this Set

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CHAPTER 7&8
CHAPTER 7&8
A contract that is EITHER written or oral. Both parties to the contract DECLARE THEIR INTENTIONS
Ex.) lease agreement for under 12 months
Expressed Contract
A contract that is neither written nor oral but put forth by actions.

Ex.) ordering a meal at a restaurant, you are implying that you will pay before leaving
Implied Contract
2 types of expressed contracts
Bilateral and Unilateral
I will do this and you will do that
Promise exchanged for a promise

ex.) standard real estate sales contract
Bilateral
I will do this if you will do that
Promise exchanged for a performance.

Ex.) salesperson bonus is offered by a broker
Unilateral
A promise not to act
Forebearance
Courts cannot enforce a contract that requires the law be broken
Lawful objective
A check written to the seller that is tendered with an offer to buy
Earnest Money
Although negotiable, the buyer's title policy is usually paid by the?
Seller
Although negotiable, a survey required by either the buyer or lender is usually paid by the?
Seller
Although negotiable, an appraisal of the property required by the lender is usually paid by the?
Buyer
Special provisions section of the contract that means the time limits in the contract should be strictly observed or the contract is voidable is?
Time is of the Essence
Entirely new offer
Counteroffer
1. Partial performance
2. Unilateral rescission: "i wont do this if you wont do that"
3. Sue for Specific performance
4. Sue for Money damages
5. Liquidated damages: earnest money is forfeited to the seller
6. Mutual rescission- both parties are innocent and cancel the contract
Breach of Contract- 6 Alternatives
A contract for the sale of real property whereby the seller does not convey title to the buyer until all of the sale price is paid
Installment Contract
(Contract for Deed or Contract for Sale)
1. Many borrowers lose their property to the seller after missing only one payment
2. The seller may not have all the rights promised to the buyer at the end of the payment period.
3. The contract is not recorded at the county clerk's office; no constructive notice is given to the public of ownership
Problems with Installment Contracts
1. Warranty deed given to buyer
2. Fee simple title given to buyer
3. Possession
4. Uses mortgage and deed of trust
5. Foreclosure process
6. Sale is recorded
7. Title policy or abstract is provided
8. time consuming repossession
Conventional Sale
1. No Warranty Deed
2. Equitable Title
3. Possession
4. Uses Installment Contract
5. No Foreclosure process
6. Not Recorded
7. No title policy or abstract
8. Speedy Repossession
Installment Sale
The contracted right of a tenant to purchase the property occupied for a specified price and within a specified amount of time
Lease Purchase Option
Texas law requires that a seller provide a _________ notice to a buyer if the property was built prior to 1978.
Lead Paint
Texas law requires that a seller provide a _________ notice to a buyer in a contract for vacant land if the property currently has a special property tax exemption.
Tax Rollback
Texas law requires that a seller provide a ________ notice to a buyer of vacant land.
Pipeline
The type of listing whereby the listing broker is paid a commission even if the owner finds a buyer and sells the property is?
Exclusive right to sell
1. Exclusive right to sell
2. Exclusive Agency
3. Open Listing
4. Net Listing
4 Types of Listings
The type of listing whereby two or more agencies/brokers have a listing on the same property is?
Open Listing
The type of listing whereby the broker is not paid a commission in the even the owner finds a buyer is an?
Exclusive Agency
The type of listing whereby a listing broker is paid the excess amount over an agreed price stated in the listing is?
Net Listing
LISTING = KEY TO WEALTH
LISTING = KEY TO WEALTH
Primary purpose of the Texas Real Estate Licensing Act is to?
PROTECT THE CONSUMER
1. Licensed Attorney
2. A public official during the course of their official duties
3. Auctioneer
4. FSBO- Property Owners (for sale by owner)
5. Apartment Managers/Leasing Agents on Site
6. Model Home Sales People
7. Cemetery Lot Salespersons
Exemption from Licensing
Saleperson-18 years old and RESIDENT

Broker- at least 4 years as a salesperson.
License Eligibility
Only Realtors are allowed access to the Multiple Listing System (MLS) SOLD DATA. The general public may access the MLS active listing data.
Only Realtors are allowed access to the Multiple Listing System (MLS) SOLD DATA. The general public may access the MLS active listing data.
A registered trademark owned by the National Association of Realtors for use by its members is?
Realtor
The making of statements a reasonable person would recognize as non-factual is called?
Puffing
The mixing of client's funds with an agent's personal funds is called?
Commingling
1. Universal Agency
2. General Agency
3. Special Agency
3 Types of Agencies
When broad powers are given to an agent to bind (OBLIGATE) the principal in matters of all kinds.

Ex.) Guardian or power of Attorney
Universal Agency
When power is given to an agen to BIND the principle in a specific matter.

Ex.) relationship between a broker and his/her salesperson
General Agency
When limited power is given to an agent to perform specific acts.

Ex.) Relationship between owner and listing broker
Special Agency
created when a broker accepts a listing
Fiduciary Relationship
1. Ground Absorbtion (leach field system)

2. Evaporating System
2 Types of Septic systems
1. Inform the buyer as to any possible defects
2. Allows the buyer to further examine the property
3. allows the buyer to make an informed decision
4. Protect the broker from non-disclosure lawsuit
Seller's Disclosure Notice
Texas law requires the broker to maintain a _____ for earnest money received by a potential buyer.
Trust Account
A term for anyone employed by or contracted with a principle broker is?
Sales Associate
(not a Licensing Category)
the discriminatory practice by a real estate agent of maneuvering a client from a minority group away from considering a home in a white neighborhood.
Steering
1.Salesperson
2. Broker
2 Levels of Licensing
is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.
Right of first refusal (ROFR or RFR) is