Chapter 12 - B3 Flashcards Preview

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Flashcards in Chapter 12 - B3 Deck (46):
1

Implied contract

Creating a contract with our actions and contract. Leases or less than a year cannot be implied

2

Bilateral contract

Two sided. Both sides are obligated. Exclusive right to sell. Seller has to pay. Realtor has to sell.

3

Unilateral contract

Only one person is obligated. Ex: buyer has an option to buy at a set price. Ex; open listing

4

Executory contract

A contract where terms and conditions have not been met. Ex: anything in escrow is executory.

5

Expressed contract

Agree to the terms and conditions. Can be verbal or in writing.

6

Optionee

Buyer

7

Optioner

Seller

8

Equitable title

Buyer owns equitable title

9

Executed contract

Both parties fulfill all obligations. Once its executed, the buyer owns legal title

10

Valid

Means legal, binding, enforceable. If someone dies the contract is valid. Its the estate responsibility to fulfill the contract if seller dies. Bad broker sucks, its still a valid contract

11

Void

When there's something illegal. Which means it never existed.

12

Voidable

Is rescindable by one of the parties. Typically not the party in the breach. Its voidable against the incompetent party.

13

Unenforceable

Missing signatures. If seller never signed it, can she sell the property? Yes
Spouse- if one spouse does sign.
Also missing legal description.
Also verbal real estate contracts.
Could seller and buyer have a verbal contract? Yes. It is not void. Not valid. Not Voidable. It is Unenforceable.

14

Illusory contract

Appears to be a contract but not.

15

Duress, collusion, menace

Seller tells buyer if you dont sign the contract ill break your knee.

16

Statue of fraud

All real estate contracts must be in writing. This statue cannot be forgery.

17

Exceptions

Statue of fraud exception - Leases of one year or less can be valid.

18

Equal dignity rule

The authority given to an agent has to be in writing

19

Forgery

Statute of fraud cannot be forgery.

20

Parol evidence rule

Written proceeds oral. The written agreement over the oral agreement.

21

Competent parties

Individuals- natural persons who are 18years and over 18years. Under 18 are incompetent.

Legally Married couple or community

22

Incompetent

Individuals- natural persons who are under 18years.
Any person who is sober while signing contract. Liquor, medication, illicit

23

Remember this point

The judge can only say if party are incompetent.

24

Infancy

You have to be 18 otherwise you are considered infancy

25

Majority

You have to be 18years

26

Personal representative

Refer notes

27

Attorney-in-fact

Person with the power of authority

28

Misrepresentation

False statements. Distortion of fact. A LIE. Lie by omission- in the state of az, if you are silent when asked a question, then your answer is a NO.

Do not represent schools or crimes. Point them to information, dont give your opinion.

29

Fraud

Deception for personal gain or to harm another. Steps to fraud is Intent.

30

Collusion

Two or more to harm.

31

Undue influence

Taking a position of power

Ex: if you want to keep the job, i want you to buy my house. Otherwise i will fire you. - this is taking power.

32

Duress

An implied threat.

Ex: if you dont buy my house, you will go missing. It is implied.

33

Menace

You will go missing if you dont buy my house. No longer implied. It is direct physical harm.

34

Bonafide

Good faith

35

consideration

What you give in exchange for what you are giving. It must be legal.

36

Good consideration

Have to be something in return. The problem with this is, its not durable. Illegal service- Love, affection, friendship. You cannot these to anyone. You are doing illegal service, you buy a house

37

Valuable consideration

Property with all the goods- personal property real property epersona.

38

Convey, transfer, sell, give

All these mean the same.

39

Legal description

1. Meets and bounds- using landmarks to define the property. Problems- landscape changes, tree dies, rivers move.
2.rectangular survey.
3.lots and block. - you go to a county...you see lots rectangular. You to subdivision...you see triangles etc.

40

Offer

Not a contract. Where one party promises to perform

41

Offeror

Is the one giving the offer. Not always the buyer or the seller.

42

Offeree

Is the one recieving the offer. Not always the buyer or the seller.

43

Counter-offer

Conditional or qualified acceptance. Which is to say ill accept everything except some- like price or escrow date. It terminates offer. Any modification of original offer.

44

Acceptance

When offeree accepts or agrees without change.

45

Guardian

Assigned by court who are incompetent

46

Option

Unilateral contract. Optionor i.e seller had to perform. Prescribed price in prescribed time.