Contracts

Question 1

Valid

Answer 1

(legal) Has all essential elements(competent parties, offer and communicated acceptance, consideration and legality)

Question 2

Invalid

Answer 2

Validity has ended. Listing has expired.

Question 3

Void

Answer 3

Missing one or more essential elements. Never was a contract.

Question 4

Voidable

Answer 4

Defected elementand voidable ONLY BY INJURED PARTY.

Question 5

Void Types

Answer 5

1.Misrepresentation(who misrepresented?) Buyer or Seller?-voidable. 2.Agent=suit for damages. 3.Minor buyer. 4.Under Duress

Question 6

Unenforceable

Answer 6

Will NOT stand up in court

Question 7

Enforceable

Answer 7

Will stand up in court

Question 8

Statute of Frauds

Answer 8

must be in writing to be enforceable (as opposed to valid) RE. sales contracts, deeds, leases over 1 year.

Question 9

Expressed

Answer 9

words (written or verbal)

Question 10

Implied

Answer 10

actions

Question 11

Uni-lateral

Answer 11

one promise

Question 12

Bi-lateral

Answer 12

two promises

Question 13

Executory

Answer 13

promises made but not completed

Question 14

Executed

Answer 14

All promises completed

Question 15

Who can draft contracts form scratch?

Answer 15

only licensed attorneys

Question 16

Color ink on contract?

Answer 16

Blue only

Question 17

what is to create an agency?

Answer 17

client relationship

Question 18

WHat is the Office Broker Policy? (GA Law)

Answer 18

Types of agencies OFFERED AND NOT OFFERED must be disclosed (to prospective client) PRIOR to the agreement of an agency contract.

Question 19

Who is on the listing agreement

Answer 19

Seller and LISTING BROKER

Question 20

Buyer Broker Agreement

Answer 20

Buyer and Selling Broker. Exclusive, expiration date, duties, agency disclosures and compensation.

Question 21

Property Management Agency agreement includes who?

Answer 21

Owner and Broker(Property Manager)

Question 22

HOA Management includes who as far as agency agreement?

Answer 22

Association and Broker (property Manager)

Question 23

Employment affiliation agreement

Answer 23

Affiliate with Broker: in writing, duties and compensation(while affiliated and any after affiliation.

Question 24

What is Open Listing?

Answer 24

Open to all Brokers. Only the Broker that procures the cause gets paid. Uni lateral contract. Exp 1 yr in GA

Question 25

Exclusive Agency Listing

Answer 25

Owner (seller) may sell )procure casue) and NOT PAY the Broker's commisssion

Question 26

Exclusive Right To Sell Listing:

Answer 26

One Broker. Broker get's paid no matter who procures the sale.

Question 27

Where do commissions go in ALL EXCLUSIVE LISTINGS?

Answer 27

To the Broker with AGENCY agreement. The Broker may coop MLS with other Brokers.

Question 28

What is Net Listing

Answer 28

Seller nets anything above commission. ILLEGAL.

Question 29

How can Listings(agency) Terminate?

Answer 29

1.Acts of the parties (ie. owner fires, mutual agreement, Broker loses license)2. Operation of law-time, sale, performance, condemnation(zoning), forclosures, bankruptcy, death of Broker and Extinction(house burns)

Question 30

What are the 4 elements of a valid )legal) Real Estate Contract?

Answer 30

1. Competent Parties (seller 18, sound minds, contractual capacity) 2. Offer and Communicated Acceptance (meeting of the minds) - exact terms, signatures and legal descriptions before signing the contract or it is void. 3. Consideration - offer is valuable. The PRICE usually) NOT the earnest money.Deed contracts may use good love but not RE contracts. Must be valuable - money, personal property and service) 4. Legal.

Question 31

What is equitable title?

Answer 31

Right to future title once an offer is accepted - gives the buyer the right to sue for specific performance

Question 32

Name contingencies

Answer 32

Due diligence(inspections) Financing contingencies, spousal approval, home warranty.

Question 33

special stipulations

Answer 33

Express the intent of the parties NOT in the original contract for that one sale. IE contingencies, inspection

Question 34

time is of the essence

Answer 34

Timely completion of contingencies

Question 35

survival clause

Answer 35

Items to be completed after closing

Question 36

Addendums

Answer 36

Must be referenced in the original contract. Done before binding.

Question 37

Amendments

Answer 37

Changes the original binding contracts. Requires additional consideration. Separate agreements. BOTH must be approved, signed (or initialed) and dated.

Question 38

Conflicts and Precedence

Answer 38

handwritten over type-written over preprinted

Question 39

Assignment

Answer 39

A contract (except personal services contracts (listings may be assigned to another party unless expressly stated otherwise in the contract and the other party does not provide additional services.

Question 40

Does death terminate the Real Estate contract?

Answer 40

NO

Question 41

What happens when a breach occurs

Answer 41

Either party can 1.rescind (rescission -court action) Return to status quo (forgive) 2. Sue for actual damages. 3. Sue for specific performance 4. SELLER's only could declare the contract forfeit and keep the earnest money. MOST likely what the seller will do if the buyer defaults.

Question 42

Earnest Money

Answer 42

Good Faith Money, Binder Money, Pre-arranged liquidated damages to seller if buyer defaults. Gives some assuarance the buyer will close. Contract states WHO holds the trust money.

Question 43

Trust Account

Answer 43

a bank account to hold other people's money (for the publ;ic's protection) Broker must be able to sign on all accounts.

Question 44

Conversion

Answer 44

Using other people's money for your benefit..CRIME