C______ (Must Be In Writing Per Statute of Frauds) Examples 1. Agreements Hiring Broker to Sell or Purchase Property. 2. Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options). 3. Lease for More than 1 Year.

Contracts (Must be in Writing Per Statute of Frauds) Examples 1. Agreement Hiring Broker to Sell or Purchase Property. 2. Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options). 3. Lease for More than 1 Year.

Essential Elements of a Contract 1. Comp_____ Parties, 2. Val___ Consideration, 3. Of___ and Acceptance, 4. Leg___ Object, 5. In Writ___ (Statute of Frauds) 6. Property Des_____

Essential Elements of Contract 1. Competent Parties, 2. Valid Consideration, 3. Offer and Acceptance, 4. Legal Object, 5. In Writing (Statute of Frauds) 6. Property Description Chap 3

1. This Agreement Gives Opportunity to Lease or Buy Within a "_Specific Time_" for a "_Specific Price_" and Terms." 2. It is Only _Binding on_ the Optionor _(Owner)_. 3. If Optionee Wants to Extend, There is Additional Consideration Required.

Option - 1. This Agreement Gives Opportunity to Lease or Buy Within a "Specific Time" for a "Specific Price" and Terms." 2. It is Only _Binding on_ the Optionor _(Owner)_. 3. If Optionee Wants to Extend, There is Additional Consideration Required. Chap 3

1. No Cooperation Offered to Other Companies, but All Offers Presented. 2. Buyer's Agent May Need Separate Compensation Agreement

Exclusive Listing - 1. No Cooperation Offered to Other Companies, but All Offers Presented. 2. Buyer's Agent May Need Separate Compensation Agreement Chap 3

Sh______ An______ A___ 1. Prohibits Anti-Competitive Practices. 2. No Fixed Commissions or Prices. 3. Commissions are Negotiable. 4. _No Geographical Non-Compete Areas._ 5. _No Boycotting Other Company Listings_

Sherman Anti-Trust Act - 1. Prohibits Anti-Competitive Practices. 2. No Fixed Commissions or Prices. 3. Commissions are Negotiable. 4. _No Geographical Non-Compete Areas._ 5. _No Boycotting Other Company Listings_ Chap 3

Contracts 3 Flashcards by lovelightforce .

Com______ P_____

Legally Capable Individuals Who Can Enter into a Binding Contract are called?

Competent Parties -

Legally Capable Individuals Who Can Enter into a Binding Contract

Chap 3

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Emp______ Agr_______

Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.

Examples: Listing Agreement or Buyer Broker Agreement

Chap 3

Employment Agreement -

Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.

Examples: Listing Agreement or Buyer Broker Agreement

Chap 3

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C______ (Must Be In Writing Per Statute of Frauds)

Examples

Agreements Hiring Broker to Sell or Purchase Property.
Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).
Lease for More than 1 Year.

Contracts (Must be in Writing Per Statute of Frauds)

Examples

Agreement Hiring Broker to Sell or Purchase Property.
Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).
Lease for More than 1 Year.

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Essential Elements of a Contract

Comp_____ Parties,
Val___ Consideration,
Of___ and Acceptance,
Leg___ Object,
In Writ___ (Statute of Frauds)
Property Des_____

Essential Elements of Contract

Competent Parties,
Valid Consideration,
Offer and Acceptance,
Legal Object,
In Writing (Statute of Frauds)
Property Description

Chap 3

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Exp_____ Contract -

Terms Specifically Stated Verbally or In Writing

Expressed Contract -

Terms Specifically Stated Verbally or In Writing

Chap 3

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Imp_____ Contract -

Created by Actions or Conduct of Parties

Implied Contract -

Created by Actions or Conduct of Parties

Chap 3

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This Agreement Gives Opportunity to Lease or Buy Within a “Specific Time” for a “Specific Price“ and Terms.”
It is Only Binding on the Optionor (Owner).
If Optionee Wants to Extend, There is Additional Consideration Required.

Option -

This Agreement Gives Opportunity to Lease or Buy Within a “Specific Time” for a “Specific Price” and Terms.”
It is Only Binding on the Optionor (Owner).
If Optionee Wants to Extend, There is Additional Consideration Required.

Chap 3

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If Seller Decides to Lease or Sell, Holder Can Match the Offer Given to Owner.

Right of First Refusal -

If Seller Decides to Lease or Sell, Holder Can Match the Offer Given to Owner.

Chap 3

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Contain All Essentials of Contract

Valid Contract -

All Essentials of Contract

Chap 3

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Not Enforceable by Law, No Contract

Void or Invalid Contract -

Not Enforceable by Law, No Contract

Chap 3

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Can be Overturned by One of the Parties.

Voidable Contract -

Overturned by One of the Parties

Chap 3

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Not Shared with Others Nor Put on MLS

Pocket Listing -

Not Shared with Others Nor Put on MLS

Chap 3

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No Cooperation Offered to Other Companies, but All Offers Presented.
Buyer’s Agent May Need Separate Compensation Agreement

Exclusive Listing -

No Cooperation Offered to Other Companies, but All Offers Presented.
Buyer’s Agent May Need Separate Compensation Agreement

Chap 3

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Buyer uses to Hire Broker to Locate Properties.

Buyer Broker Agreement -

Buyer uses to Hire Broker to Locate Properties.

Chap 3

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Com______ Lien

Lein in AZ, for Unpaid Moneys, may be placed on Seller’s Property, Commercial Leases Only

Commissions Lien -

Lein in AZ, for Unpaid Moneys, may be placed on Seller’s Property, Commercial Leases Only

Chap 3

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Sh______ An______ A___

Prohibits Anti-Competitive Practices.
No Fixed Commissions or Prices.
Commissions are Negotiable.
No Geographical Non-Compete Areas.
No Boycotting Other Company Listings

Sherman Anti-Trust Act -

Prohibits Anti-Competitive Practices.
No Fixed Commissions or Prices.
Commissions are Negotiable.
No Geographical Non-Compete Areas.
No Boycotting Other Company Listings

Chap 3

Cov______ Not to C_______

Promise by Seller of Business, “Not to Compete” with Buyer of Business in Agreed Area for a “Specific Time.”

Covenant Not to Compete -

Promise by Seller of Business, “Not to Compete” with Buyer of Business in Agreed Area for a “Specific Time.”

Chap 3

Illu_____ Contract

Contract Worded Loosely

Illusory Contract -

Contract Worded Loosely

Chap 3

Regulation that says Contracts Must Be In Writing to be Enforceable and Signed by All Parties / Authorized Agents

Statute of Frauds -

Regulation that says Contracts Must Be In Writing to be Enforceable and Signed by All Parties / Authorized Agents

Chap 3

Agreements that Must Be In Writng - (As per Statute of Frauds) -

Emp______ Agreement with Broker
Lis_____ Agreement
B_____ Broker Agreement
Pur_____ Agreement
De___
Tr____ Deeds & Mortgages
L____ - More than 1 year

Agreements that Must Be In Writng - (As per Statute of Frauds) -

Employment Agreement with Broker
Listing Agreement
Buyer Broker Agreement
Purchase Agreement
Deeds
Trust Deeds & Mortgages
Lease - More than 1 year

Chap 3

Money or Valuables such as Labor, Love or Affection (Gift)

Valid Consideration -

Money or Valuables such as Labor, Love or Affection (Gift)

Chap 3

Of____ and Ac_______ -

All Parties Must Agree to All Terms -A Meeting of The Minds

Offer and Acceptance -

All Parties Must Agree to All Terms. A Meeting of The Minds

Chap 3

L_____ O______

The Objective of the Agreement Must be Lawful.

Legal Object (Legal Purpose) -

The Objective of the Agreement Must be Lawful.

Chap 3

All the Terms Have Been Performed by All Parties

Executed Cotract -

All the Terms Have Been Performed by All Parties

Chap 3

**All Terms _Have Not Been_ Fully Performed In A Purchase Contract.** What Type of Contract?

**Executory Contract -** **All Terms _Have Not Been_ Fully Performed In A Purchase Contract** Chap 3

**A Promise is Made By (One Party) _In Return_** For the Promise of Another **_Examples_** 1. Listings 2. Purchase Contracts 3. Leases

**Bilateral Contract -** **A Promise is Made By (One Party) _In Return_** For the Promise of Another **_Examples_** 1. Listings 2. Purchase Contracts 3. Leases **Chap 3**

**One Party Makes Promise to _Induce_ Other Party** Into Action **Examples**: 1. **_Option_**: Right to Buy in **Specific Period/Time/Price** 2. **_Right of First Refusal_**: **"_If Offered for Sale_**," 1st Right

**Unilateral Contract -** **One Party Makes Promise to _Induce_ Other Party** Into Action **Examples**: 1. **_Option_**: Right to Buy in **Specific Period/Time/Price** 2. **_Right of First Refusal_**: **"_If Offered for Sale_**," 1st Right **Chap 3**

**R\_\_\_\_\_\_ E\_\_\_\_ Emp\_\_\_\_\_ Contract** **Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property** **For Compensation or Commission.** **Must Contain:** 1. Inception Date 2. Expiration Date 3. Signed by All Parties 4. Cannot not be Re-Assigned to 3rd Party

**Real Estate Employment Contract -** **Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property For Compensation or Commission.** **Must Contain:** 1. Inception Date 2. Expiration Date 3. Signed by All Parties 4. Cannot not be Re-Assigned to 3rd Party **Chap 3**

**O\_\_\_\_ Listing -** **Listing Broker** will be **Paid a Commission only if He/She Finds a Buyer for the Property** **_Note:_** **1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.**

**Open Listing -** **Listing Broker** will be **Paid a Commission only if He/She Finds a Buyer for the Property** **_Note:_** **1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.** **Chap 3**

**Ex\_\_\_\_\_\_ A\_\_\_\_\_ L\_\_\_\_\_\_\_ -** The **Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer**. What type of listing? **\*\*\* Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.**

**Exclusive Agency Listing -** The **Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer**. What type of listing? **\*\*\* Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.** **Chap 3**

**Listing Broker** will be **Paid No Matter Who Sells Property.** What type of listing? **Notes**: 1. **Offers "Most" Protection** for the broker 2. **Contains Provision Entitles Broker Commssion** (Within Specific Time Frame After Expiration of Listing) for Buyers Procured By Broker Previously.

**Exclusive Right to Sell -** **Listing Broker** will be **Paid No Matter Who Sells Property.** What type of listing? **Notes**: 1. **Offers "Most" Protection** for the broker 2. **Contains Provision Entitles Broker Commssion** (Within Specific Time Frame After Expiration of Listing) for Buyers Procured By Broker Previously. **Chap 3**

**This is what type of listing?** **Seller Agrees To Take Specific Amount as Net Proceeds** and **Broker May Retain Amount Above Net Proceeds Seller Agreed To.**

**Net Listings -** **Seller Agrees To Take Specific Amount as Net Proceeds** and **Broker May Retain Amount Above Net Proceeds Seller Agreed To.** **Chap 3**

**Refers to a Property that is** **Not Yet Availlable For Sale.** **_Could Violate Agent's Duty to Seller by_**: 1. **Circumventing MLS rules** 2. **Marketing to Select Groups** 3. **Requiring Buyers to Use Listing Broker for Transcation. (Exclusve to One Company)** 1.

**Coming Soon Listing -** **Refers to a Property that is Not Yet Availlable For Sale.** **_Could Violate Agent's Duty to Seller by_**: 1. **Circumventing MLS rules** 2. **Marketing to Select Groups** 3. **Requiring Buyers to Use Listing Broker for Transcation. (Exclusve to One Company)** **Chap 3**

What type of Listing Has the Following Boundaries: 1. **_Cooperation and Compensation_** is **Not Offered To Other Companies** 2. However, All Offers Must be Presented 3. **_Buyer's Agent May Need_** **Separate Compensation Agreement to Assure Payment**.

**Exclusive Listing -** **Following Boundaries of Listing:** 1. **_Cooperation and Compensation_** is **Not Offered To Other Companies** 2. However, All Offers Must be Presented 3. **_Buyer's Agent May Need_** **Separate Compensation Agreement to Assure Payment**. 4. . **Chap 3**

**If an Adult and a Minor enter Into a Contract, the Contract** 1. Void on Its Face 2. Voidable By the Minor 3. Voidable By Either Party 4. Binding on Both Parties

**If an Adult and a Minor enter Into a Contract, the Contract** 1. Void on Its Face 2. **Voidable By the Minor** 3. Voidable By Either Party 4. Binding on Both Parties **Chap 3**

**When a Contract is Based on a Misrepresentation of Material Fact, the Contract is:** 1. Illegal 2. Voidable by Both Parties 3. Voidable by the Party Damaged by Misrepresentation 4. Unenforceable on Either Party

**When a Contract is Based on a Misrepresentation of Material Fact, the Contract is:** 1. Illegal 2. Voidable by Both Parties 3. **Voidable by the Party Damaged by Misrepresentation** 4. Unenforceable on Either Party **Chap 3**

**A Contract Where One Promise is NOT Exchanged for Another Promise is a:** 1. Unilateral Contract 2. Bilateral Contract 3. Expressed Contract 4. Implied Contract

**A Contract Where One Promise is NOT Exchanged for Another Promise is a:** 1. **Unilateral Contract** 2. Bilateral Contract 3. Expressed Contract 4. Implied Contract **Chap 3**

**Which of the Following Items is Required to Be in a Listing** 1. Street Address 2. Rate of Commission 3. Termination Date 4. Mortgage Debt Amount

**Which of the Following Items is Required to Be in a Listing** 1. Street Address 2. Rate of Commission 3. **Termination Date** 4. Mortgage Debt Amount **Chap 3**

**If Agent A takes an Open Listing for 6 Months on March 1st and Agent b take an Exclusive Right to Sell Listing on March 15th for 3 Months, but Agent A finds Buyer on April 15th, what may occur?** 1. Only Agent A is owed a Commission 2. Only Agent B is owed a Commission 3. The Seller May owe Both Agents a Commission 4. No Commission is owed to Either Agent

**If Agent A takes an Open Listing for 6 Months on March 1st and Agent b take an Exclusive Right to Sell Listing on March 15th for 3 Months, but Agent A finds Buyer on April 15th, what may occur?** 1. Only Agent A is owed a Commission 2. Only Agent B is owed a Commission 3. **The Seller May owe Both Agents a Commission** 4. No Commission is owed to Either Agent **Chap 3**