Pearson Vue Quizzlet Flashcards by Jemarcus Unknown

Surface, all natural things attached to it, subsurface, and air above the surface

Land

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Land + mandmade permanet attachments

Real Estate

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Real Estate + Bundle of rights

Real Property

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Inmobility, indestructibility, heterogeneity

Physical Characteristics

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Land cannot be moved from one site to anoter, its location is forever fixed.

Immobility

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Land is permantent and cannot be destroyed, since, by definition it extends blow ground and into the sky. Since land is permanent, it does not depreciate. Only improvements depreciate and are insurable

Indestructibility

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Land is non-homogenous, no two parcels of land are the exactly the same since they have different location

Non-homogeneity

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Possess, Use, Transfer, Exclude, Encumber

The Bundle of Rights

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Full legal ownership of property and the bundle of rights as they apply to it. Contrast with equitable title.

Legal Title

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Property is either real or personal property is either tangible or intangible

Property Characteristics

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An interest that gives a lienholder or buyer the right to acquire legal title to a property if certain contractual conditions occur

Equitable title

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Property is either real or personal.
Property is either tangible or intangible

Property Characteristics

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Air Space

Air Rights

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Surface (of the earth)

Surface rights

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Subsurface

Subsurface of mineral rights

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Doctrine of Prior Appropiation

State controls water usage
State grants usage permits

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Riparian Rights

Rivers and streams.
If waterway is navigable; owners own land to waters edge.
if waterway is not navigable: owners own land to midpoint of waterway.

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Littoral Rights

Applies to seas and lakes.
Abbuting property owners ownto high water mark.
State owns underlying land.

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Real Property

Land, fixtures, attachments

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Personal Propery

Chattels, Trade Fixtures, Emblements

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Differentiation Criteria

Item is real or personal property depending on why, how item is attached to the real estate. Depends on the owner’s.
Intention, adaptation, functionality, relationship of parties, conract provisions.

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Trade Fixtures

Personal property items temporarily attached to the real estate in order to conduct business

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Emblemets

Plants crops that are considered personal property despite being attached to the land.

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Conversion

Real to personal property referred to as severance.
Personal to real property referred to as affixing.

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Factory-built housing - mobile homes and manufactured homes

Units are real or personal property. Real property if permanently affixed to ground, otherwise it is PERSONAL PROPERTY.

Federal Regulation

Grant rights of ownership. Controls broad land usage standars. Regulates anti-discriminations laws- land grants, federal flood zones, fair housing laws, FHA, EPA.

State regulation

Governs real estate business. Sets regional usage standards. License laws, water rights, development regulation.

Local Regulation

Levies real estate taxes. Controls specific usage. Examples: property accessing; zoning; building permits, tax levies.

Judicial Regulation

Applies case law and common law to disputes. Contrast with statutory law.

Possession/Possesory

Estate in land

Non Possession/Non possesory

Private: Emcumbrance Public: Public Interest

Estate in Land

Include right of possession. Leaseholds = Limited duration Freeholds: Duration is not limited.

Freehold (Own)

Fee Simple Absolute Fee Simple Defeasible Life Estate Conventiona Life Estate Legal

Leasehold

Estate For Years Periodic Estate at Will Estate at Sufferance

Fee Simple

Not limited by one's lifetime

Fee Simple Absolute

Highest form of ownership interest

Defeasible

Reverts to previous owner per conditions.

Life Estate

Passes to another upon death of a named party

Remainder

Named party to receive estate

Reversion

Previous owner to receive estate

Conventional Life Estate

Limited to lifetime of life tenant or named party

Ordinary

Estate passes to remaiderman or previous owner when life tenant dies

Pur Autre Vie

Limited to lifetime of another, passes to remainderman or previous owner.

Legal Life Estate

Created by operation of state law as opposed to a property owner's agreement. Designed to protect family survivors.

Homestead

Right to one's principal residence. Laws must occupy the homesteadd cannot be conveyed by one spouse. Endures over life of head of the household

Estate for years

Specific, stated durationm per lease, expires at the end of term

Periodic

Lease term renews automatically upon acceptance of rent

Estate at Will

For indefenite period subject to rent payment, cancelable with noitce.

Estate at Sufferance

Tenancy against landlord's will and without agreement.

Tenancy in Severalty

Sole ownership of a freehold estate; passed to heirs.

Tenancy in Common

Co-tenants individually own undivided interests. Any ownership share possible. No survivorship. Can convey to outside parties.

Equal undivided interes jointly owned

Joint Tenancy.

Ownbers hold single title jointly

Unity of Ownership

Owners always hold equal shares

Equal Ownership

May transfer to new owner as a tenancy in common interest with remaining joint tenants

Transfer

On death, interests and right ass to other joint tenants

Survivorship

Require four unities 1. Possession 2. Interest 3. Time 4. Title

Creation

Separate Acquired before marriage Acquired by gift or inheritance Acquired with separate property-funds Income derived from separate property

Separate Property

All property earned or acquired during the marriage

Communiy Property

Gives title, deed, trust agreement to trustee

Trustor

Renders fiduciary duties to trustor and beneficiary

Trustee

Receives ownership benefits

Beneficiary

Conveyance of real, personal property during one's lifetime

Living/Testamentary Trust

Grantor and beneficiary are same party; beneficiary uses, controls property but does not appear on public records

Land Trust

Ownership of a unit of airspace plus an undivided interest in the common elements as tenant in common with other owners May be sold, encumbered, or foreclosed without affecting other unit owners Creation; by developer's declaration Individually taxed Owners share common area expenses, managed by condo association

Condominiums

Ownership of shares in owning corporation Propietary lease in a unit Corporation has sole, undivided ownership Owners potentially liable for expenses of entire co-op, creditors may foreclose on entire property

Cooperatives

Lease or ownership interes in property for periodic use on a scheduled basis. Lease-tenant leases property per the lease's schedulde

Time Shares

Tenants in common own undivided interests, pay expenses per separate agreement

Freehold

Non-possessory interests limiting legal owner's rights Do not include possession Encumbrances that affect use Encumbrances that affect ownership, value , transfer Encumbrances affecting use; easements, encroachments, licenses, deed restrictions Encumbrances affecting ownership, value, transfer: liens, deed conditions

Encumbrances

Rights to use portions of another's property Affirmative easement - allows use negative easement - prohibits an use

Characteristics / Easements

Attaches to the estate. Dominant tenement's right to use or restrict adjacen servient tenement by necessity to landlocked owners Party wall easement in a shared sturcture to not or destroy

Easenent Appurtenant

Does not attach to the estate. Personal - non transferrable, ends upon death of easement holder Commercial - Transferrable, granted to a business

Easement In Gross

Property used without permission can come to exist regardless of owner's consent Obtainable through continuous, open, adverse use over a period of time

Easement by Prescription

Personal right to use a property. Does not attach. Non-transferrable. Revocable. Ceases upon death of owner

License

Unauthorized intrusions of one owner's real property onto another's. May require survey to detect May become prescriptive easements if not remedied over precription period

Encroachments

Conditions, covenants, imposed on property by deed or subdivision plat. Goes with the property upon transfer. Established to control quality, standards of a subdivision. Apply to land use, type of structure, set-backs, minimum house size, etc.

Deed Restrictions

Created upon property transfer if violated, ownership may revert to previous owner

Deed Conditions

Created by mutual agreement Enforced by injuction

Deed Covenants

Claims attaching to real and personal property as security for debt. Recorded on title effectively reducing the equity in the amount of the lien

Liens

Mortage lien

Is an example of a Voluntary Lien

Tax Lien

Is an example of an Involuntary Lien

Against any & all assets

General Lien

Against car or house

Specific Lien

Paid before juniors

Superior Lien

Paid after superiors by date of recording

Junior Lien

Lender of mortagaged property holds equitable title rather than legal title, borrower holds legal title

Lien Theory State

Lender holds legal title to the mortgaged property until the mortgagor satisfies the terms and obligations of the loan.

Title Theory State

Order in which liens against a property are satisfied. Determined by superior vs junior class by date of recordation. The highest priority lien is paid by foreclosure proceeds before any other lien

Lien Priority

Real estate tax liens Special assessment liens Federal estate tax liens State inheritance tax liens

Superior lies by rank (noy by date of recordation, paid before junior liens)

Federal income tax liens judgement liens Mortagage liens Vendor's liens Mechanich's liens

Junior liens by date of recording (by date of recording)

Liquidation or transfer of collateral property by judicial, non-judicial, or strict foreclosure.

Foreclosure

Liquidation of collateral property by judicial, non-judicial, or strict foreclosure.

Mortgage Lien Foreclosure

Lawsuit by creditor and court ordered public sale to enforce lien, deficiency judgments, redemption rights.

Judicial Foreclosure

Judgment by court on borrower to forfeit other property to payoff any short falls from foreclosure.

Deficiency Judgments

Borrower's right to reclaim property before or after foreclosure sale.

Redemption rights

Power or sale granted to lender, no suit, no defiency judgment, no redemption period after sale.

Non-judicial foreclosure.

Court orders legal transfer of title directly to lender without public sale

Strict Foreclosure.

Defaulted borrower deeds property to lender to avoid foreclosure

Deed in Lieu of Foreclosure.

Owner enjoys full bundle of rights

Legal Title

Party can obtain legal title subject to agreement with creditors

Equitable Title

How ownership is evidenced to the public

Notice

Knowledge acquired directly through demostrable evidence presenting or inspecting a deed, visiting a party in possession.

Actual notice

Knowledge one could have obtained, as presumed by law, imparted by recording in public record for all to see

Constructive Notice.

Deed, will, public grant

Voluntary Transfer

Descent (without will, with heirs) Escheat ( without will not heirs) Foreclosure ( loan default) Eminent Domain (public good) Adverse Possession (hostile , open use)

Involuntary Transfer

Grantor grants deed to grantee. Legal title transfers upon intentions delivery and grantee's acceptance.

Deeds of Conveyance

Grantor, grantee, in writing, legal description, granting clause, consideration, grantor's signature acknowledgment delivery and acceptance.

Deed Validity

Premises: granting Habendum: type of estate Reddendum: restrictions Tenendum: other property included

Deed Clauses

"I own but won't defend"

Bargain and sale

"I own and will defend"

General Warranty

"I own and warrant myself only"

Special Warranty

"I may or may not own, and won't defend"

Quitclaim

Used for different, purposes, interests conveyed, or by different parties.

Special Purpose Deeds

Single-property use restriction as stipulated in a deed; may not be a discriminatory

Deed Restriction

Use of restriction in multiple property declarations; enforced by court injuctions

Declaration Restrictions

Usage restriction that can trigger reposession by a previous owner if violated

Deed Condition

Documentary stamp tax: tax on conveyance of real property based on price of property conveyed. Facilitates ad valorem assessment Payment evidenced on deed.

Transfer Tax

Key characteristics Will transfers estate to heirs upon death Maker=owner; devisior or testator Heir=beneficiary or devisee

Wills

Witnessed in writing and two witnesses

Witnessed will

Will in testator's handwritting-nuncupative; oral written by witnesses; generally not valid for property transfer

Holographic will

Legal age, mentallly competent, entitled-last will & testament; signed, witnessed, voluntary

Vallidity of will

Dies testate with heirs Order of title transfer First to creditors Then to homestead Then to heirs by will

Testate

Order of title transfer First of creditors Then to homestead Then to heirs by laws of descent

Dies intestate with heirs

Order to title transfer First to creditors Then to state by escheat

Dies intestate, no heirs

Adverse possession Unwanted owner- may claim ownership to a property Must show "claim of right" as reason Must be notorious possession (unconcealed) Must be hostile (possessor claims ownership) Must be continous for a statutory period of time

Involuntary title transfer

Instruments affecting title must be recorded Gives pubic notice of ownership, condition of title Determines property marketability Protects lienholders; establishes chronology for lien property

Title records

Successive property owners from original grant to present

Chain of title

Unrecorded claims

Cloud on title

Lawsuit to settle claims

Suit to quiet title

Written chronology of recorded owners; transfers, encumbrances

Abstract of title

Title insurance (best form of evidence) Attorney's opinion of abstract Title certificates Torrens registration

Evidence of title

Lease is both an instrument of conveyance and contract of covenants between tenant an landlord Lease conveys temporary, exclusive use of premises in exchange for rent and right of reversion

Leases

Rights: use, posession, quiet enjoymet, profits Tenant obigations: pay rent; maintain premises; follow rules

Tenant rights and obligations

Rights; receive rent, responsess upon expiration; monitor tenant compliance Obligations; property conditions, habitability, support services

Landlord rights and obligations.

Landlord pays expenses, tenant pays higher rent than net

Gross lease

Tenant pays some or all expenses; rent is less than gross

Net lease

Landlord receives rent minimum plus percentage of retailer's sales

Percentage lease

Gross lease hybrid; short term; uniform terms reflect landlord-tenant standards

Residential lease

Landlord owns and leases ground but does not own improvements

Ground lease

For cooperative unit owners, indefinite term, assigned to new unit owner on sale

Propietary lease

Leasehold transfers rights for limited use, examples: air, mineral, water rights

Leasing of rights

Default Notice Property destruction Death Term expiration, etc

Lease termination

Purposes. Balanace landlord and tenant rights Standarize leases Have uniform eviction procedures Protect tenants Serve as model for state legislation

Unifirm Residential Landlord and Tenant Act

Clear lease terms Fair market rent Cannot waive rights

Leases

Limits on amounts Tenant's right to interest Rules and deadlines for returning

Deposits

Bargain in good faith. Provide maintanance and repairs Comply with building codes Provide safety and access Procedure for delivery of notices

Landlord Obligations

Mantain condition Abide by rules and regulations No damage or abuse Abide by approved uses No disturbance of other tenants

Tenant obligations

A standard of construction of an improved property established by local government officials

Building code

A document confirming that a newly constructed or renovated property has fully complied with all building codes and is ready for occupancy

Certificate of occupancy

A planned policy that requires developers to correct foreseen negative impacts of a developent during the construction period of the project itself rather than afterwards

Concurrency

A decree that a parcel of private property is to be taken for public use under the power of eminent domain. A government order that is no longer fit for use and must be demolished

Condemnation

A provision in a deed that limits or places rules on how the deeded property may be used or improved

Deed restriction

A power of a government entity to force the sale of private property for subsequent public use

Eminent domain

Regulation of how individual owners use property in a municipality or planning district. Control patterns are in accordance with a master plan

Land use control

An amalgamated land use plan for a municipality, county, or region which incorporates community opinion, the results of intensive research, and the various land use guideline and regulations of the state. Acts as a blueprint for subsequent zoning ordinances and rulings

Master plan

Legal or illegal land use that is not consistent with the current zoning ordinance

Non-conforming use

A government's legal authority to create, regulate, tax, and condemn real property in the interest of the public health, safety and welfare

Police power

A limitation on the use of a property imposed by a deed, zoning, state statute, or public regulation

Restriction

A land use in conflict with current zoning that is authorized because of its perceived benefit to the public welfare

Special exeption

A land use that conflicts with current zoning but it authorized for certain reasons, including undune hardship to comply and minimal negative impact to leave it alone

Variance

A municipal land use regulation

Zoning ordinance

Preserve property values; promote highest and best use; safeguard public health, safety, and welfare, control growth, incorporate community consensus

Goal of land use control

Long term growth and usage strategies; often required by state law Local plans fuse municipal goals and needs with state and regional laws

The master plan

Control growth rates: how much growth will occur and at what rate -control growth patterns: type of growth desired, where it should be located Accomodate demand for services and infrasturucture

Planning objectives

Research trends and conditions; blend local and state objectives into master plan

Plan development

Commission makes rules, approves permits, codes, and development plans

Plannig management

Police power, granted by state-level enabling acts, zoning ordinance: creates zones, usage restrictions, regulations, requirements -Enables urban land managers to create separate land uses that do not conflict with one another nor create incompatible adjacencies

Zoning

Residential, commercial, industrial, agricultural, public, PUD Residential zoning regulates density or number of dwellings in an area Commercial zoning regulates intensity, or how much commercial activity is permitted in relation to size of the site

Types of zone

Zoning board of adjustment oversees ruke administration and appeals

Zoning administration

Nonconforming use: legal if use existed prior to zone creation, illegal otherwise Variance: use exception granted based on hardship Special exception: based on public interest Amendment: change of zones; rezoning

Zoning appeals

Allows a government entity to purchase a fee or easement interest in privately owned real property for the public good and for public use in exchange for just compensation

Eminent domain

PUD zoning designed to regulate use of whole tracts of land with a singular design -Design purposes are to achieve optimum space efficiency and open space

Planned Unit Development (PUD)

Plat of subdivision and relevant requirements must be met and approved; must meet FHA requirements for insured financing Location, grading, alignment, surfacing, street width, highways -sewers and water mains -lot and block dimensions -building and setback lines -public use dedications -utility easements -ground percolation

Subdivision regulations

Comprehensive onsite and offsite construction and material standards; must be met to receive certificate of occupancy

Building codes

Flood control; solid waste disposal; air quality; water quality; marine protection; noise control; toxic substances contol; lead paint; CERCLA; superfund

Environmental restrictions

Oversees rule administration and appeals

Zone board of adjustment

Legal use existed prior to zone creation, illegal otherwise

Nonconforming use

Use exception granted based on hardship

Variance

Based on public interest

Special exception variance

Change of zones; rezoning

Amendment

Air, soil, water, quality, ambient, health hazards; natural hazards

Areas of concern

Limits damage to environment; standards for air; land; water; material use

Major legislation

Disclosure and information for practitioners; remediation for owners

Responsibilities and liabilities

Regulated landfils 1965. 1976. 1999, 2002

Solid Waste Disposal Act (RCRA)

1967-1970 Regulated air quality standards

Air quality act Clean Air Act

Implemented in 1969 and regulated and formed the EPA

National Environment Policy Act (NEPA)

Amended in 1969 and regulated building in flood zones and flood insurance

Floor Control Act

1978 regulated lead based paint residences

Lead-based paint ban (US consumer product safety commission rule)

1980, hazardous waste disposal

CERCLA: Comprehensible Environmental, Response,Compensation, and Lianility Act

1989, asbestos in building materials

Asbestos Ban (EPA rule)

1994 flood insurance in flood zones

Flood Insurance Reform Act

2002 industrial site cleanup

Brownfields Legislation

To accurately locate and identity the boundaries of a parcel of real property to a degree acceptable by court of law in the state where the property is located General criterion is that it alone provides sufficient data for a surveyor to locate the parcel

Purpose

Describes perimeter by landmarks, monuments, distances, angles Usable within rectangular survey system Starting at point of beginning (POB) follow perimeter, return to POB

Metes and Bounds Method

Used to describe properties in residential, commercial, industrial subdivisions- Tracts of land divided into lots, then grouped into blocks

Lot and block system

Simplify and standardize property descriptions -All land in system surveyed using longitude and latitude lines Lines created uniform grids of squares called townships

Rectangular Survey System

The six-mile by six-mile square at the intersection of a range and a tier

Township

a 1 mile X 1 mile square; 1 section = 640 acres; 36 sections per township

Section of a township

An agreement between two or more parties who have a meeting of the minds, and have pledged to perform (or refrain from performing) some act A valid contract is legally enforceable by meeting certain requirements of contract law If a contract does not meet requirements, it is not valid and the parties to it cannot resort to a court of law to enforce its provisions

Contract

Meet all requirements

Valid

Certain oral contracts; if performed, can not change outcome

Valid but Unenforceable

Not valid; unenforceable

Void

May be rescinded due to subsequent discoveries: if performed, cannot change outcome

Voidable

Legal age, mental competency, legitimate authority

Competent parties

Clear and unequivocal offer and acceptance with an underlying meeting of the minds

Mutual consent

Two-way exchange of valuable consideration for performance by the other party' not love and affection

valuable Consideration

Promise, intent and content must be lawful; if illegal, contract is void - cannot contract to breal the law

Legal Purpose

No duress, coercion, fraud or misrepresentation

Voluntary, good faith

Must be in writing must contain legal description must be signed by one or more parties Exception: per Statute of Frauds, leases for one year or less may be verbal and still be enforceable

Validy of a conveyance contract

Must contain all intended terms. Must be in writing. Expires in reasonable time or date and time specified

Offer

Unequivocal and manifest agreement to offer -No changes to offer whatsoever signed, preferably dated

Acceptance

Communication of acceptance to offeror -if by mail, offer is communicated upon mailing

Completed contract

New or amended terms of a received offer - original offer is void

Counteroffer

May be done anytime prior to offeree's communication of acceptance

Revoking an offer

Acceptance, rejection, revocation, expiration, counteroffer, death or insanity of either party

Termination of an offer

Express: all terms expressed agreed to Implied: Unintentional agreemment deemed to exist due to terms implied by actions

Express vs Implied

Bilateral

Both parties promise to perform

Unilateral

One party performs if other party performs

Fully performed

Executed

Performance yet to be completed

Executory

Cancel contract, return deposits

Recission

Defaulting party gives up something according to contract terms

Forfeiture

Damages to a damanged party as stated in contract

Liquidated damages

Civil suit for money damanes not covered by damages

suit for damages

Suit force party to fulfill contract promises

Specific performance

Principal (client) hires agent (broker) find ready, willing, and able customer (buyer, seller, tenant, landlord) Client- agent relationship governed by fiduciary duties of trust, confidence, good faith

The agency relationship in real estate

Represent in all matters. Can contract for principal

Universal agency

Represent in business matters. Agent can contract for principal

General Agency

Represents in single business transaction Normally agent cannot contract for principal Characterizes the brokerage relationship

Special

Express written or oral agreement (listing) established for a specified transaction - contains an express expiration

Creation of agency

Can be intentional or unintentional Can obligate the agent to fiduciary duties and professional standards of care not allowed to exist in some states

Implied agreement

Fulfillment Expiration Mutual Agreement Expiration Mutual Agreement

Voluntary termination

Incapacity Abandonment or destruction of property Renunciation Breach Bankruptcy Revocation of license

Involuntary termination

Agent's Fiduciary Duties to Client Skill, care, dilligence, proactive, competent, act, within bounds of expertise -place client interest above customer and self Obedience - provided actions, instructions are legal Confidentiality-Extends beyond listing term indefinitely Full disclosure: Property condition, customers, material facts Accounting - proper handling of monies and documents Obligations Owed Customers -Honesty and Fair Dealing -Reasonable Care and Skill Proper Disclosure

Duties and Obligations

Potential consequences. Loss of listing, compensation, license suspensions, suit for damages

Breach of duty

Puffin- licensee boasting about property's benefits

Misrepresentation and fraud

Misstatement or failure to disclose material fact -knowledge that statement was false or fact should have been disclosed -party relied on misstatement -party was damaged by misstatement

Fraud

Misstatemen or concealment of fact

Misrepresentation

Purposeful mistatemeent of material fact

Intentional misrepresentation

Purposeful concealment of material fact

Intentional omission

Unintended misstatement that agent should have known

Negligent misrepresentation

Seller or buyer agency Tenant or landlord representation

Single agency

Representing both sides Potentially illegal or conflict of interest Must disclose & obtain written consent Types of dual agency- voluntary by consent Involuntary by actions of parties--Implied Agency Duties - all but full disclosure and loyalty

Dual agency

Disclose to both parties; obtain written consent -owes duties of skill, care, dilligency, obedience, confidentiality, accounting -does not owe duties of full disclosure and loyalty; exclusive representation of client's interest

Dual agency duties

In writing. On or before the listing is executed

Seller agent disclosures to client

In writing Upon first face-to-face contact, upon substantive communication, depending on state law Oral disclosure permitted but must have written follow up

Seller agent disclosure to customer

In writing Upon first contract with listing agent or seller Substantive contract is assumed

Buyer agent disclosures to seller

Listing broker - fiduciary of buyer client or seller client Subagent - fiduciary of listing broker's client

Parties

to client: loyalty; obedience, disclosure care, diligence, accounting To customer: honesty, care, and disclosure

Fiduciary duties

Unilateral Contract Oral Listing is valid and enforceable Exclusive listing in some states must be written to be enforceable Personal service contract - not assignable

Contract law

Given to one broker Usually must be in written Must expire Broker gets commission if properly transfers during period

Exclusive right to sell

Exclusive excepting owner Oral or Written Must expire Broker gets commission unless owner sells

Exlcusive agency

Non-exclusive Oral or written No stated expiration Procuring cause gets commission No commission if client procures customer

Open listing

May perform only authorized tasks. Must verify owner and property data. May delegate duties to salespeople and other brokers

Agent's performance

Sole proprietorship For profit corporation General or limited partnership Joint venture

Brokerage

Salesperson: is agent and fiduciary of broker Acts in broker's name and is subagent of client

Legal relationship

Comissions per schedule after splits with cooperating brokers

Agent compensation

No restrain of trade, monopolies, predatory pricing, exclusive dealing No collusion: two or more business conspiring to disadvantage a competitor No market allocation Colluding to restrict competition in a market segment in exchange for competitor's reciprocal agreement

Sherman Anti-Trust Law

Must be binding, bilateral contract for purchase and sale -the enforceable "blueprint" for closing -contract is executory, or to be fulfilled -expires upon closing -must be in writing -for validity, must -contrain valuable consideration -identity property -be signed by all

Sale Contracts

Seller can cancel, claim liquidated damages or sue for specific performance, buyer's deposit

Buyer's defaul

Buyer can cancel or sue for damages or specific performance

Seller's Default

Non refundable consideration or option right Price and terms of the sale Option period expiration date Legal description

Contract requirements