Real Estate Contracts

Question 1

Valid Contract

Answer 1

a voluntary agreement based on the consent of the parties to the agreement.

An offer by one party (offeror) is accepted by the other (offeree).

A contract can be revoked by the offeror up to the time of acceptance.

Question 2

Contractual partiest must be:

Answer 2

of legal age and able to understand the nature or consequences of their actions

Question 3

Contracts must be supported by

Answer 3

Consideration, and with a legal act as the objective

Question 4

Bilateral Contract

Answer 4

Obligations on both sides

Question 5

Unilateral Contract

Answer 5

Obligations on one side

Question 6

Executed Contract

Answer 6

All parties have fulfilled duties

Question 7

Void

Answer 7

one of the essential elements is missing.

If a mistake, misrepresentation, fraud, undue influence, or duress occurs, there is no mutual consent or meeting of the minds, which means that an essential element of the contract is missing and the contract is void.

Question 7

Executory Contract

Answer 7

One party still has duties to fulfill

Question 8

Vodiable

Answer 8

may be rescinded or disaffirmed by one or both parties.

A contract with a minor is voidable

Question 9

Option

Answer 9

allows the optionor (owner) to give the optionee the right to purchase the
property at a later date at the price fixed in the option agreement.

Question 10

A real estate sales contract is usually accompanied by:

Answer 10

Earnest Money Deposit

Question 11

Earnest Money Deposit

Answer 11

may be held in a broker’s escrow or trust account until an escrow is arranged to complete
a property purchase or the funds are returned to the would-be buyer if there is no sales agreement.

Question 12

Owner financing

Answer 12

can assist a buyer by providing a credit for some or all of the purchase price.

Question 13

Purchase Money Mortgage

Answer 13

the buyer receives title to the property immediately but places a security interest on the property
in favor of the seller