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Flashcards in RE Contract Laws Deck (112)
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1

The TREC Fave Five

TREC is made up of five divisions:

Education, Licensing, & Communication
Enforcement
Information Services
Staff Services
Administration

2

Common Law:

Law derived from past judicial decisions of courts

3

Statutory Law:

Law formally created by legislatures

4

Annexation:

Attaching (or affixing) personal property to real estate in a way that transforms the personal property into real property

5

Adaptation:

The use and modification of a particular item for a specific use in a property — specific use for a property could deem an item as real property

6

Intention:

The owner's intent for an item — was it designed to be a part of the real property

7

In Severalty:

Describes undivided ownership of an estate, with an interest that is exclusive from other owners

8

Testamentary Trust:

A type of trust that is effective upon the death of the trustor

9

Living Trust:

Type of trust created during someone's life to manage their assets in life and in death

10

Sole Proprietorship: A

business entity in which revenue, liability, and all responsibilities are owned by one person

11

Partnerships:

A business entity legally formed for two or more individuals to share profits

12

Corporation:

A company or group of people recognized as one entity under the law; owners purchase stocks in the corporation (shareholder) and the corporation is run by the board of directors (elected by the shareholders)

13

S Corp:

A corporation (that can only be formed with less than 100 shareholders) that is similarly taxed like a partnership to avoid double taxation

14

General Partner:

Person who takes the lead on day-to-day relationships and assumes full liability for the business

15

Limited Partner:

Person who is only liable for the amount they have invested into the business venture

16

Joint Venture: A

partnership formed by a group of investors for one venture — it dissolves after the venture is complete

17

Promissory Estoppel: A

legal doctrine that forces a party to keep a promise and prevents a party from backing out of an agreement

18

Parol Evidence Rule:

A common law rule that prevents a consumer from using things outside of the written contract to make a claim. Verbal promises not in the contract will not be upheld by the court.

19

Statute of Limitations:

Legal concept that establishes time limits from the date of event for bringing certain kinds of legal actions

20

The Doctrine of Laches: A

legal principle used to bar dated claims; used in conjunction with an unreasonable delay or negligence in asserting or defending one’s rights

21

Allodial System:

System of ownership in which land is owned completely, without an obligation of services or duties to another

22

Ownership Interest:

An undisputed right of an owner to their property

23

Security Interest:

The right of a lender to claim ownership of a property if a borrower defaults on payments

24

Equitable Interest:

A secondary and lesser interest in a property than the ownership interest with which it is associated.

25

Public land-use controls:

Government-issued land-use controls such as zoning ordinances, subdivision regulations, and building codes

26

Private land-use controls:

Land-use controls that are put into place by non-governmental entities, such as real estate developers

27

Public ownership of land:

The role of government to own and maintain public land such as streets, highways, and parks

28

Due process of law is a

constitutional guarantee which blocks the government from impacting its citizenry in an abusive manner.

29

Actual Damages:

Monetary compensation given to an injured party for losses that were a result of the actions or omissions of another party

30

Liquidated Damages:

Sum of money established by the contract as compensation in the event of default