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35 Cards in this Set
- Front
- Back
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Assignment |
Transfer all legal rights from one party to another |
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Bilateral contract |
Both parties agree to do something & both bound by the breach |
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Breach |
A broken promise |
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Contingency |
Condition that must be met before proceeding with contract |
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Counteroffer |
New offer that negates original offer |
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Earnest money |
Good faith money put up by buyer. Could be forfeited in case of breach |
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Equitable title |
When seller except offer buyer is entitled to equity on property |
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Executed contract |
When transaction closes, contract becomes executed |
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Executory contract |
Promises have been made but have not been fulfilled yet |
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Expressed contract |
A contract that could be in writing or verbal |
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Implied contract |
Created by the actions of parties & not expressed |
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Land contract |
Private contract between Vendor (seller) & Vendee (buyer) Contract for deed Installment contract Agreement for sale |
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Liquidated damages |
Amount stated in contract that can be forfeited in case of a breach |
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Option |
Right to purchase at set price & time but not obligated |
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Valid contract |
Contains all required elements of a binding contract |
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Voidable contract |
Can be rescinded by one of the parties |
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Void |
Missing at least one of the requirements needed for a valid contract |
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Unenforceable contract |
Contract that appears to be valid but is not legally enforceable |
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Consideration |
Something legal value that two parties agree to |
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Unilateral contract |
Only one party is bound by the agreement |
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Trust account |
Neutral account where you hold money that belongs to another |
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Conversion |
Spending trust money |
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Addendum |
Additional term or agreement add to an existing contract |
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Amendment |
Changes existing terms that are already agreed to by the parties |
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Specific performance |
Court action to compel a party to fulfill terms of a contract |
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Punitive damages |
Court awarded to punish perpetrator & not toward injured party |
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Binder |
Good faith agreement created until final longer version is drafted |
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Nominee |
Someone added to an existing contract or acting on someone's behalf |
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Compensatory damages |
Court indemnify a person for specific loss, Monterey amount to replace loss only |
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Statues of limitations |
Time set by law to take legal action against another party |
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Reality of consent |
The contract must be entered into free & voluntary |
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Elements of a Real Estate contract |
Competent parties Legal purposes Meeting of the minds Consideration Love & affection (gift family/friends) |
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Legal title |
Deed is delivered & accepted |
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Commingling |
Mixing trust money with operating funds |
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Time is of the essence |
Parties must live up to the timeframes agreed to in contract |
