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Flashcards in Module 3 Contracts Deck (26):
1

Define exclusive right-to-sell listing

A listing contract under which the owner appoints a real estate professional as his exclusive agent for a designated period of time to sell the specified property on the owner’s stated terms and agrees to pay the real estate professional a commission when the property is sold, whether by the real estate professional, the owner, or another real estate professional.

2

Define exclusive agency listing

A listing contract under which the owner appoints a real estate professional as her exclusive agent for a designated period of time to sell the specified property, on the owner’s stated terms, for a commission. The owner reserves the right to sell the property without paying anyone a commission if the sale is to a prospect who has not been introduced or claimed by the real estate professional. 177

3

Define net listing

In Massachusetts this type of listing is illegal.

A listing based on the net price the seller will receive if the property is sold. Under a net listing, the real estate professional can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states. 177

4

How is a commission set?

A commission is an agreement between a seller and a broker and is negotiable

5

Define mortgagee:

A lender in a mortgage loan transaction. 243

6

Define mortgagor:

A borrower in a mortgage loan transaction. 243

7

Elements of a contract:

• An Offer in writing
• Consideration
• Legality
• Competency
• Consent
• Termination of Offer
• Time Limit
• Withdrawal by Offeror
• Acceptance

8

Define revocation:

Canceling or annulling licensed privileges or rights. 204


9

Define valid contract:

A contract that complies with all the essentials of a contract and is binding and enforceable on all parties to it. 205

10

Define void contract:

A contract that has no legal force or effect because it does not meet the essential elements of a contract. 205

11

Define voidable contract:

A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties. 205

12

Define purchase option

The right given by a lease to the tenant to purchase the property at a predetermined price within a certain period, possibly the lease term. 356

13

What is the Massachusetts Statute of Frauds

Written p&s

14

Define equitable title:

The interest held by a vendee (buyer) under a contract for deed or an installment contract in which title is not immediately transferred; the equitable right to obtain absolute ownership to property when legal title is held in another’s name. 211

15

Define Legal Title:

After the Closing when the deed is delivered to the buyer

16

Define specific performance

A legal action to compel a party to carry out the terms of a contract. 207

17

Define granting clause:

Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. This clause is generally worded as “convey and warrant”; “grant”; “grant, bargain, and sell”; or the like. 104

18

Define legal description

A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it. 85

19

Define metes-and-bounds:

method A method used to describe a parcel of land that begins at a well-marked point and follows the property’s boundaries, using directions and distances around the tract, back to the place of beginning. 86

20

Define lot-and-block:

(recorded plat) method A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat. 91

21

Define Torrens system:

A method of evidencing title by registration with the proper public authority, generally called the registrar ; named for its founder, Sir Robert Torrens. 86, 125

22

Define title search:

The examination of public records relating to real estate to determine the current state of the ownership. 122

23

Define chain of title:

The succession of conveyances, from some accepted starting point, whereby the present holder of real property derives title. 122

24

Define abstract of title:

The condensed history of the recorded ownership of a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate. 122

25

True or False In Massachusetts the sale of property to be enforceable it must be in writing.

True

26

Define installment:

sale A transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets certain requirements, a taxpayer can postpone reporting such income until future years by paying tax each year only on the proceeds received that year. 433