Flashcards in Chapter 9 "Real Estate Contracts" Deck (16)
Parties state the terms and show their intentions in words. May be oral or written. i.e. listing agreements and buyer representation agreements
The agreement of the parties is demonstrated by their acts and conduct.
both parties (seller and buyer) promise to do something:; one promise is given in exchange for another.
one-sided agreement whereby one party makes a promise in order to induce a second party to do something.
exists when something remains to be done by one or both parties; that is, the agreement is partially performed. i.e. the contract can be signed by both partied but the payment has not been delivered yet.
When all parties have fulfilled all promises in the agreement. Once funding and closing has occurred, the real estate sales contract is an executed agreement - the purchase price is paid, the deed is delivered, and the purchaser has possession of the property.
Binding and enforceable on both parties
No legal effect; Contract for an illegal purpose.
Valid, but may be disaffirmed by one party; Contract with a minor.
Valid between parties, but neither may force performance; Certain oral agreements.
Mutual exchange of promises by buyer and seller to legally obligate themselves to do something they were not legally required to do before.
Statute of Limititaions
Any action for the specific performance of a contract for the conveyance of real property must be commenced within 4 years from the date of the breach. A suit brought for a DTPA violation must be begun within 2 years from the date a buyer could reasonably have discovered the deceptive act. A party who intends to file a claim for payment from the real estate recovery fund must file an action within 2 years from the date a cause of action accrues.
refers to a transfer of rights, duties, or both under a contract. Substitution of parties.
or the substitution of a new contract for an existing agreement with the intent of extinguishing the old contract, is another way to perform a contract.
Unilateral contract by which an optionor (generally an owner) gives an optionee (a prospective purchaser or lessee) the right to buy or lease the owner"s property at a fixed price within a stated period of time. Is not a sales contract.