Unit 2-B

Question 1

A contract in which the parties expressly enter into mutal agreements or engagements (e.g., a real estate sales contract). Each party promises to perform some act

Answer 1

Bilateral contract

Question 2

A written employment contract in which the buyer agrees to pay the broker compensation to assist the buyer in locating and acquiring property.

Answer 2

Buyer Broker Agreement (Buyer Representation agreement)

Question 3

Refers to a property that is not available for showing or sale until a later date

Answer 3

Coming Soon Listing

Question 4

1. Of sound mind, for the purposes of entering a contract or executing a will; not suffering from mental illness, retardation, or senility. 2. Of sound mind and having reached the age of majority

Answer 4

Competent Parties

Question 5

An agreement that the law will enforce. The elements of a contract are mutual assent (offer and acceptance), consideration, competent parties, legal subject matter, and sometimes that the contract be in writing if required by the Statute of Frauds

Answer 5

Contract

Question 6

A promise often given by the seller of business not to compete with the buyer of the business in an agreed area for a specified time.

Answer 6

Covenant not to compete

Answer 7

Employment Agency Listing

Question 8

A listing agreement where the broker is given the exclusive right to sell property, but the owner reserves the right to sell the property on their own with payment to the broker

Answer 8

Exclusive Agency Listing

Question 9

A written listing agreement where the seller contracts with only 1 broker to sell the property; may be an exclusive agency agreements or exclusive right to sell agreement

Answer 9

Exclusive Listing

Question 10

A listing agreement where the broker is entitled to collect a sales commission regardless of who sells the property, including a sale by owner of the property

Answer 10

Exclusive Right to Sell Listing

Question 11

A contract that has been performed by all parties

Answer 11

Executed Contract

Question 12

A valid contract that has not been fully preformed, such as signed real estate contract prior to closing.

Answer 12

Executory Contract

Question 13

A contract that has been put into words, either spoken or written

Answer 13

Expressed Contract

Question 14

A contract based on one’s actions through the behavior (actions or words) of one or both parties

Answer 14

Implied Contract

Question 15

A requirement for a contract whereby the objective of the agreement is lawful.

Answer 15

Legal Object (Legal Purpose)

Question 16

A listing agreement in which the seller sets a net amount he or she is willing to accept for the property; if the actual selling price exceeds that amount, the broker is entitled to keep the excess as commission; discouraged in most states illegal in many

Answer 16

Net Listing

Question 17

Meeting of Minds or Mutual assent - all parties agree

Answer 17

Offer and Acceptance

Question 18

A non-exclusive listing, given by a seller to as many brokers as he or she chooses. If the property is sold, a broker is entitles to commission only if he or she is the procuring cause of the sale

Answer 18

Open Listing

Question 19

The right to buy, sell, lease, rent, or exchange real property for specific terms within a specified timeframe. This is an unilateral contract binding only the seller

Answer 19

Option

Question 20

Money given by the optionee to the optioner at the time the option is granted

Answer 20

Option Money

Question 21

A property for which a broker hold a signed listing agreement with a seller that in not entered into the multiple listing service (MLS)

Answer 21

Pocket Listing (same as open listing)

Question 22

A right that gives the holder the chance to buy or lease property if the owner decides to sell of lease it after receiving a bona fide offer from a third party.

Answer 22

Right of First Refusal

Question 23

The federal law that makes in illegal for real estate brokers to set uniform commission rates (price fixing) and prohibits other acts of collusion that could limit free competition in the marketplace

Answer 23

Sherman Antitrust Act

Question 24

A law requiring that certain action be taken within specified time after the occurrence of the event

Answer 24

Statute of Frauds

Question 25

A contract that is legally binding on only the one party who mad the promise

Answer 25

Unilateral Contract

Question 26

Money or other valuables such as contributed labor, or good consideration, as with a gift (aka love and affection).

Answer 26

Valid Consideration

Question 27

Legal classification of a contract that is binding and enforceable in the court of law

Answer 27

Valid Contract

Question 28

Having no legal force or effect, e.g., a contract with an illegal purpose.

Answer 28

Void Contract or Invalid Contract

Question 29

A contract that one of the parties can disaffirm because it lack a legal requirement or there’s a negative factor, such as fraud or duress

Answer 29

Voidable Contract