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20 Cards in this Set
- Front
- Back
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It is the _____ who makes the offer to buy – not the ________. The Seller, in placing her wares on display, indicating the price, advertising special sales, and so forth, is inviting someone to make an offer, or making an “_______.” The offer indicates an “________.” |
Buyer
Seller who makes the offer to sell invitation to treat
intention to be bound
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Similarly, in real estate transactions, the contract consists of: 4 |
An Offer to Purchase (made by the Buyer); Acceptance by the seller in the strict term Communication of that acceptance by the Seller to the Buyer; and Consideration, which, for our purposes, is the property and the purchase price itself.
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A Buyer can revoke an offer to purchase at any time before ______, unless the offer is stated to be ______. |
acceptance is communicated to him open for a certain amount of time |
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If the Seller amends the offer (by writing $160,000.00 and crossing out $150,000.00), the Seller is said to have made a ______ to the Buyer. |
Counter offer |
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contract is made when the parties are said to have reached a consensus ad idem, which is _______. |
an agreement as to all terms. |
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Once the Seller has made a counter-offer back to the Buyer, the Buyer's first offer is ______. That is, if the Buyer does not accept the counter-offer, the Seller cannot say, “OK. I will take your original offer.” A counter-offer is a rejection of the original offer, and that original offer is no longer open for acceptance, unless made again by the Buyer. |
void |
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A conditional offer is one that is made with _____except that the ________(e.g., bank approval of financing, satisfactory home inspection, or lawyer’s approval). If the condition is not ______, there is no ______. If the condition is _____, the Buyer waives the condition and the agreement becomes ______
satisfied |
all terms definite transaction is conditional upon something happening before a certain date contract firm and binding. |
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In a conditional offer, ______ between the Seller and the Buyer. The only uncertainty is ______. If the condition is satisfied, the contract is unconditional, and the transaction will proceed. If the condition is not satisfied, there is no contract. |
all of the details of the transaction must be agreed to
whether the condition will be satisfied
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All conditional offers to purchase must contain a _____—the date by which ________. If by that date the Buyer does not waive her condition, then the transaction _______. Accordingly, there is a ______ on the Buyer to waive that condition by ______ the Seller a ________, and the transaction is to go ahead. |
condition removal date the Buyer must notify the Seller that the condition has been satisfied and is waived
is over and the deal will not proceed.
positive obligation
executing and forwarding to waiver in writing indicating that the condition has been satisfied or waived, |
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The law imposes an obligation on the Buyer to ______. |
make all reasonable efforts to satisfy any conditions. |
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In most real estate transactions, the lawyers do not receive instructions to act _____. |
for the Seller or the Buyer until the transaction is unconditional. |
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Normally the Buyer places a deposit on the property and pays the balance of the purchase price on or before ______(referred to as _______). |
the date of the closing of the transaction
possession date, closing date, or completion date |
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Terms of a contract can be divided into two types— |
warranties and conditioned |
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Warranties are the ____ of a contract, the breach of which can give rise only to _______. |
less important terms
an action for damages |
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Conditions are ______ terms and, in addition to damages, it may be possible for the innocent party to obtain _____ |
the more important
Rescission of contract |
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If the Seller has made a warranty as to some important matter and that warranty is breached, the Buyer may, even though the contract is unconditional, be able to ______t. Courts have held that where there was substantial breach of a warranty, and where the warranty went to the “______,” the Buyer may be able to _____, not just sue for ______. This is called ______. |
terminate the contract root of the contract rescind the contract damages fundamental breach. |
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The Seller has the following four remedies as a result of the Buyer's breach.
Seller's primary remedy |
Retain deposit Actions for damages Actions on Vendor's lien caveat Specific performance
Action for damages |
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The deposit is normally held in , often by _____. The implication at law is that the deposit is a _____for the Buyer's breach and will be ______ if the Buyer does not complete the transaction, i.e., refuses to close. |
trust a realtor or sometimes by the Seller's lawyer pre- estimate of the Seller's damages forfeited by the Buyer
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The Seller must show that he is “______” to complete. This usually means that the Seller must ______. |
ready, willing, and able
deliver to the Buyer the transfer documentation even if the Seller is convinced that the Buyer has no intention of closing the transaction
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If the deposit is substantial (more than ______) and the Buyer refuses to complete the transaction, the Seller will clearly want to retain the deposit. The Buyer may, in those circumstances, ______ that the Buyer's forfeiture of this large deposit is a rather than a _______. If a court determines that the deposit, by its very size, constitutes a _____, a court may grant “______” and _______ notwithstanding the Buyer's breach of the contract. |
10 percent or 15 percent of the purchase price
make an application to a court for the Court’s declaration
penalty genuine pre-estimate of damages suffered by the Seller for the Buyer's refusal to close
relief from forfeiture
direct that all or a portion of the deposit be returned to the Buyer, |
