Contracts And Escrow

Question 1

Mutual consent

Answer 1

Also called mutual assent or a meeting of the minds means that the parties agree

Question 2

Consideration

Answer 2

Anything of value in this required for every valid contract consideration does not have to be money it could be a promise work for an act for parents or a benefit conferred the consideration cannot be illegal or services already performed

Question 3

Valuable consideration

Answer 3

Anything of value is required for a valid contract consideration does not have to be in when he could be a promise for work to benefit

Question 4

Good consideration

Answer 4

Love and affection auto is not valuable consideration consideration fulfills the requirements of consideration in a contract

Question 5

Competent parties

Answer 5

A person must be 18 years of age to enter into contract and that is married has been my emancipated or were in the Armed Forces

Question 6

Lawful object

Answer 6

The fourth essential element of a valid contract and the contract must be legal in formation the consideration must be legal

Question 7

BiLateral contract

Answer 7

A contract is a promise for a promise will wear these are bound by the contract to perform I will sell your house if you will pay me a commission

Question 8

Unilateral contract

Answer 8

The contract in which a promise is exchange for performance only one party is obligated to perform under the contract and example would be any student who brings in another student receives 25 from the school

Question 9

Valid contract

Answer 9

One that is binding and enforceable in a court of law

Question 10

Executors contract

Answer 10

A contract in which something remains to be done it is incomplete

Question 11

Executed contract

Answer 11

A contract that is completed performance by the parties has taken place

Question 12

Unenforceable contract

Answer 12

Not that is valid but cannot even enforced an oral real estate contract may be valid but as it is not writting it is unenforceable

Question 13

Express contract

Answer 13

A contract made in writting

Question 14

Implied grant

Answer 14

A contract that is created by the actions of the parties involved not in writting

Question 15

Waiver

Answer 15

A unilateral act which gives up a right In a contract

Question 16

Novation

Answer 16

The substitution of s new obligation for an existing one with the intent to extinguish the original contract it may consist of substitution of one of more parties all parties must agree

Question 17

Fraud usually

Answer 17

Makes a contract voidable which the injured party has the right to void or rescind the contract

Question 18

Actual fraud

Answer 18

When you act to deceive the other party and to persuade that other party to enter into a contract

Question 19

Constructive fraud

Answer 19

Is an act that was done without fraudulent intent but still gains an advantage for the party at fault the injured party relied on the misrepresentation of the party at fault

Question 20

Breach of contract

Answer 20

Rescind the contract unilaterally accept partial performance sue for money damages accept liquidated money damages sue for specific performance mutually rescind the contract

Question 21

Suing for specific performance

Answer 21

Is a court action taken by an innocent party to force the party who has breached contract to carry out the contract according to be precise terms price and conditions on which parties agreed on

Question 22

Liquidated damages

Answer 22

Clause in the contract that provide the amount of damages in the event that in the parties to the contract does not perform it must e signed by both parties to be exercise

Question 23

If buyer of a residence back out of a contract the liquidated damage clause limits the amount of damages to

Answer 23

3% of the sales price or the amount of the deposit which ever is less remainder returned to buyer promptly

Question 24

The statute of limitations

Answer 24

Requires an injured party to take action within a specific period of time otherwise he or she is barred from seeking relief in a court of law

Question 25

Statue of limitations of oral contracts

Answer 25

2 years

Question 26

Statute of limitations of encroachments or inverse condemnation

Answer 26

3 years

Question 27

Statue of limitation on written agreement

Answer 27

4 years

Question 28

Statue of limitations on judgment liens

Answer 28

Ten years

Question 29

The statute of fraud is a law that requires

Answer 29

Certain type of contracts to be in writting in order for the, to be enforceable in court of law

Question 30

Contracts must be in writting

Answer 30

Lease of a year or more A will Loan Employments with buyer or seller must contain termination date Contract between broker and sales agent Contract of sales of personal property valued in excess of 500 Contracts involving limited partnership

Question 31

Contracts that do not have to in writting

Answer 31

A lease less than year General partnership Agreements between brokers to split commissions Listing contract to negotiate loan Personal property listings/business opportunity listings Commonly used when buying

Question 32

Option (written agreement)

Answer 32

A written agreement in which the owner of the property optionor agrees to sell the property to a prospective buyer optionee for a certain price within a certain period of time this is a contract to keep an offer open

Question 33

Real estate contract also known as a a deposit recipt

Answer 33

This contract is more Han a receipt for money because when accepted it becomes a binding contract whereby the buyer agrees to buy and seller agrees to sell under terms stated

Question 34

Information about deposit receipts

Answer 34

A broker can't extend the time limits set forth in the deposit recipt or of escrow copy of the deposit recipt must be given to each party who signs it at the time it is signed contingency clause allows contract to be rescinded if some stated event fails to happen "offer subject to" or "offer contingent on"tender is an offer to sell a buyer should notify the seller of his disapproval in writting his investigation on earthquakes hazards reveals unacceptable risk

Question 35

Escrow

Answer 35

A neutral third party called an escrow agent who acts as a trusted stakeholder for all parties to the transaction

Question 36

If no specified in th escrow instructions it is to take place within

Answer 36

Reasonable time possession of the property is given to the buyer at the close of escrow unless another day specified

Question 37

If buyer wants to move in before escrow

Answer 37

He should obtain written permission from seller

Question 38

All sales transactions

Answer 38

Should be reported to the Internal Revenue Service by escrow company

Question 39

Closing statements

Answer 39

Close of escrow both the buyer and seller receive a written statement as to the disposition of all money statements are set up in the same manner with debuts on the left and credits to the right the debit and credit columns must balance

Question 40

Prorations

Answer 40

Certain items are usually prorated to the close of escrow these include taxes insurance interest and rent

Question 41

Insurance transfers the risk of loss from the insured policy owner yo the insurance company in exchange

Answer 41

Of insureds payment of a premium

Question 42

Chain of title

Answer 42

The history of conveyances and encumbrances on aproperty from the time of the original patent (first time the property was sold) attorneys and tittle insurance employees search the chain of tittle

Question 43

Clta

Answer 43

California land title association provides protection against matters of record impersonation forgery lack of capacity of a party in the transaction defective delivery of a record grant deed banks won't accept only refinance

Question 44

Alta

Answer 44

America land title association is a policy developed for lenders which includes onsite inspection and survey borrower pays protects against unrecorded liens unrecorded easements facts that a correct survey will reveal right if parties in possession mining claims and water rights encroachments

Question 45

Termite reports Re required when

Answer 45

Financing f.h.a or va loan

Question 46

Contract

Answer 46

Illegally and forcible agreement between two or more parties to do or not certain thing