Ch 8 - Contracts Flashcards Preview

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Flashcards in Ch 8 - Contracts Deck (23)
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1

An agreement formed by the receipt of an earnest money deposit as evidence of the buyers good faith and intent

Binder or deposit receipt

2

An interest in the property acquired once the parties have signed the purchase agreement

Equitable title

3

an act or the promise thereof, which is offered by one party to induce another to enter into a contract

Consideration

4

Rights, privileges, and improvements that are transferred with the property, but are not part of the actual property

Appurtenances

5

An item that was once personal property, but has been affixed to a property, becoming real property

Fixture

6

A provision that prevents the contract, or any specific covenant in the contract, from merging with the deed

Survival clause

7

An agreement used primarily for financing commercial properties

Sale-leaseback agreement

8

The buyers initial deposit and serves as evidence of intent to fulfill his obligations under the contract

Earnest money

9

What type of contract is a lease?

Bilateral

10

What type of lease is an option?

Unilateral

11

True or False:

Option money purchases “time” and does not provide the optionee with an interest in the property

True

12

True or false:

In a purchase agreement, the parties must fully perform their obligations at the time the agreement is signed

False - The parties do not fully perform their obligations at the time the agreement is signed

13

True or false:

A contract is still valid if no closing date is specified

True

14

True or False:

The brokers responsibilities are not ended when the agreement is signed

True

15

True or False:

The type of deed the seller agrees to deliver at closing should be specified in the contract

True

16

A _________ is a bilateral contract involving two parties: the _______ and the ________

Lease
Lessor (usually the landlord)
Lessee (usually the tenant)

17

What type of contract is usually used when sufficient financing is not available to the buyer from a lending institution?

A land contract, also known as an installment contract, conditional sales contract or contract for deed

18

What document typically has these provisions: date, parties, mutual agreement, legal description, price and terms, earnest money, type of deed, marketable title, distraction to the premises, possession, closing date, brokers commission, signatures?

Form contract

19

What are the two most commonly found contingencies in sales contracts?

1. Contingent upon the sale of the purchasers present home

2. Contingent upon satisfactory home inspection

20

At closing, the ______ Merges with the deed as title passes to the buyer

Sales contract

21

In the event of destruction or substantial damage, other states have enacted the _______ Which places the risk of loss on the seller (vendor) until the buyer is given possession of the property

Uniform vendor and purchaser risk act

22

In order to ensure that a date is faithfully observed, what phrase must be included?

Time is of the essence

23

If the type of deed is not specified, the seller would be allowed to use which deed types, depending on the particular state?

A special warranty deed or a quit claim deed, depending on the particular state