Flashcards in chapter 11 Deck (50)
what should happen if any fixtures are in questioned?
they are in listed in the sale contract. this can help to eliminate possible arguments at the time of the final walk through.
what is earnest money deposits?
the earnest money deposit is evidence of the buyer intention to carry out the terms of the contract in good faith
where is earnest money held?
sponsor must establish money funds in one account. the escrow accounts non interest bearing, unless both parities agree in writing.
What happen if there is interest on a escrow account?
it paid on the deposit, the disposition of any accrued interest must designated by the parties in writing and separate interest bearing account must be set up for that deposit.
What should each sponsor have for the escrow account?
each sponsor must maintain a complete journal and ledger of all earnest money and notify IDFPR of the name of the federally insured institution where the money is deposited.
when should escrow money should be deposit?
all funds must be deposited to that account no later then the end of the next business day following the acceptance of the real estate contract or lease agreement.
If the IDFPR inspects the escrow account, how much time produce the records?
both the account itself and sponsor records are subjected to inspection at any time sponsor records need produced within 24 hours up official request.
what is commingling?
is mixing their own funds with funds in special escrow accounts except for the purpose of maintaining a minimum running balance.
what is conversion?
using escrow funds for personal use
what is equitable title?
when buyer signs a contract to purchase real estate, the buyer doesn't receive legal title to the land. legal title transfers only on delivery and acceptance of deed.
what is destructive of the premiss?
under common law of contract, the buyer always bore the risk of in the event the property as damaged or destroyed prior closing
what is uniform vendor and purchase risk act?
seller bear nay loss that occurs before the title passes or the buyer take possession. as a practical matter, the seller should be certain the property is fully insured for sale price value up the closing is completed and possession has been given
what is liquidate damages?
a void a lawsuit if one party breach the contract, the parties may agree on certain amount money that compensate the non breaching party. the money is called liquidated damages.
what is contingencies?
additional conductions that must be satisfied before a sales contact is fully enforceable are called contingencies
what is amendments and addendum's?
is provision added to an existing contract without altering the content of the original
it any provision added to an existing contact without altering the content of the original
what is options?
is contract by which gives an optionee the right to buy or lease the owner's property at a fixed price within a certain period of time
what is the option agreement?
requires that the option is not exercised within the time specified time specified time, specified elects to execute the option's . if the option is not exercised within the time specified time specified in the contract, both optionor's obligation and the optionee's right expire.
what is land contract?
real state sale can be made by a land contract also called a contract for deed, and installed contract, or article of agreement for warranty deed. under a typical land contract the seller retains legal title. the buyer take possession and get equitable title to the property
what is does the buyer agree to under a land contract?
to give the seller a down payment and pay regular monthly payment and pay regular monthly installments of principal and interest over number of years. the buyer also agrees to pay real estate taxes, insurance premiums, repairs and up keep on the property.