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Flashcards in Purchase Contracts 5 Deck (53)
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1

Expresses the Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.

Letter of Intent -

Expresses the Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.

Chap 5

2

What agreements are assignable?

Purchase Agreements and Leases -

Assignable

Chap 5

3

Assignor is the Person that Assigns Transfer of Rights, and the Assignee is the Person that Gets Rights Transfered to.  Who has 1st and 2nd Liability in the Transfer of Rights?

Deals with Purchase Contracts and Leases, unless prohibited.

During the Assignment of Contract Rights -

  1. Assignor (Assigning Rights) - 1st Liability
  2. Assignee (Rights Transfered To) - 2nd Liability

Deals with Purchase Contracts and Leases, unless prohibited.

Chap 5

4

Conv____ of F_____

Agent uses Trust Funds for His/Her Own Use

Conversion of Funds - Own Use

Agent Uses Trust Funds for Own Use

Chap 5

5

Resc_____ of Contract -

  1. Mutual Agreement to Cancel,
  2. Restoring Parties - Original Positions.
  3. Broker must follow Buyer and Seller's Instructions

Rescission of Contract -

  1. Mutual Agreement to Cancel,
  2. Restoring Parties - Original Positions.
  3. Broker must follow Buyer and Seller's Instructions

Chap 5

6

 

Clause that Allows Party to Withdraw. Contingent Upon a Certain Condition/Event.  Voids Contract.

Contingency Clause -

Clause that Allows party to Withdraw. Contingent Upon a Certain Condition/Event.  Voids Contract.

Chap 5

7

N___ H___ Sales Contacts

Contracts where Earnest Money is Not Held in Escrow but in Business Account

New Home Sales Contracts -

Contracts where Earnest Money is Not Held in Escrow but in Business Account

Chap 5

8

M_____ C_______ C_____

Clause where Contingency is Based On Buyer Obtaining Financing.   Specifies:

  1. Amount,
  2. Interest Rate
  3. Terms,
  4. Commitment Date

Mortgage Contingency Clause -

Clause Contingency Based On Buyer Obtaining Financing.   Specifies:

  1. Amount,
  2. Interest Rate,
  3. Terms,
  4. Commitment Date

Chap 5

9

Rotted Wood and Cellulose Debris is part of what inspection?

Termite Inspection -

Rotted Wood and Cellulose fall under this type of inspection.

Pest Control is Licensed by: AZ Dept of Agriculture

Chap 5

10

 

Clause where Contingency is Based On Buyer obtaining Financing. Specifies:

  1. Amount,
  2. Interest Rate,
  3. Terms,
  4. Commitment Date

Mortgage Contingency Clause -

Clause Contingency Based On Buyer obtaining Financing. Specifies:

  1. Amount,
  2. Interest Rate,
  3. Terms,
  4. Commitment Date

Chap 5

11

Termite Inspectors are License by whom?

AZ Dept of Agriculture -

Licensing for Termite Inspectors

Chap 5

12

AZ State Board of Te______ Regis_______

Home Inspectors are Licensed by whom?

AZ State Board of Technical Registration -

Licensing for Home Inspectors

Chap 5

13

Pre-printed Words are these. And the Written Word Always Prevails.

Boiler Plate -

Pre-Printed Words are these. And the Hand Written Word Always Prevails.

Chap 5

14

Cl___ of Es____

Typically Occurs when Deeds are Recorded

Close of Escrow -

Typically Occurs when Deed Recorded

Chap 5

15

Person or Entity Other Than the Policy Holder who is Covered by Policy

Additional Insured -

Person or Entity Other Than the Policy Holder who is Covered by Policy

Chap 5

16

If Buyer Defaults - Seller May:

  1. Allow W______
  2. Retain Earnest Money as L______ Damages
  3. Sue for Damages "Sp_____ P_____" in Court.

...

If Buyer Defaults - Seller May:

  1. Allow Withdraw,
  2. Retain Earnest Money as Liquidated Damages
  3. Sue for Damages "Specific Performance" in Court.

Chap 5

17

If Seller Defaults - Buyer May:

  1. Allow W_______,
  2. Sue for Damages "Sp_____ P_______" in Court

If Seller Defaults - Buyer May:

  1. Allow Withdrawal,
  2. Sue for Damages "Specific Performance" in Court

Chap 5

18

Cav___ Em___

Latin Term for Obvious Defects - Buyer is responsible, which means Buyer Beware Of.

Caveat Emptor -

Latin Term for Obvious Defects - Buyer is responsible, which means Buyer Beware Of

Chap 5

19

Dispute Resolution "Process" to help Resolve Differences, Conducted by a 3rd Party.

Mediation -

Dispute Resolution "Process" to help Resolve Differences, Conducted by a 3rd Party.

Chap 5

20

Non-Judicial Submission to a Third Party, where Both Parties Agree to Comply with Final Decision by 3rd Party as Binding

Arbitration -

Non-Judicial Submission to a Third Party, where Both Parties Agree to Comply with Final Decision by 3rd Party as Binding

Chap 5

21

In these Type of Offers, Seller Can Reserve the Right to Counter Multiple Offers and Accept Any He Receives from Buyer.

Multiple Offers/Counter Offers -

In these Type of Offers, Seller Can Reserve the Right to Counter Multiple Offers and Accept Any He Receives from Buyer.

Chap 5

22

If a Buyer Makes Multiple Offers on Different Properties, what must he do?

Buyers Multiple Offers:

Buyer must Disclose in Each Offer, that He is Making Multiple Offers.

Chap 5

23

After Written Acceptance of an Offer, what Type of Title does Buyer Have?

Equitable Title -

After Written Acceptance of Offer, Buyer has this Type of Title, and Contract is Exectory.

Chap 5

 

 

24

Indemni______  C______

Hold Harmless Clause. One Party Protects Another Party from Damage.

Indemnification Clause -

Hold Harmless Clause. One Party Protects Another Party from Damage.

Chap 5

25

An Invitation to Enter Into a Contract

Offer -

An Invitation to Enter Into a Contract

Chap 5

26

The Buyer who Makes the Offer is called?

Offeror -

Person Who Makes the Offer

Chap 5

27

An Offer Made by the Offeree to the Offeror, which Modifies the Offeror's Original Offer

Counter Offer -

An Offer Made by the Offeree to the Offeror, which Modifies the Offeror's Original Offer.

Chap 5

28

Term used  a Purchase Contract or Lease to indicate that the Buyer/Lessee may Name Another Person or Entity Who Will Complete the Transaction.

Nominee -

Term used  a Purchase Contract or Lease to indicate that the Buyer/Lessee may Name Another Person or Entity Who Will Complete the Transaction.

Chap 5

29

Buyer's Money Given to Show Good Faith to Seller to Complete the Transaction.  

As a check, cash, or note

Earnest Money -

Buyer's Money Given to Show Good Faith to Seller to Complete the Transaction. 

As a check, cash or note

Chap 5

30

Tr_____ Ac_____

Any Type of Financial Account (Federally Insured} that is Opened by an Individual and Managed by a Designated Trustee for the Benefit of a Third Party (the Beneficiary) as Per Agreed-Upon Terms

Brokers In AZ Not Required to Maintain Trust Account unles Engaged In Propety Management (Chap 15)

Trust Account -

Any Type of Financial Account (Federally Insured} that is Opened by an Individual and Managed by a Designated Trustee for the Benefit of a Third Party (the Beneficiary) as Per Agreed-Upon Terms

Brokers In AZ Not Required to Maintain Trust Account unles Engaged In Propety Management (Chap 15)

Chap 5