A contract for the sale of real estate that does not state the consideration to be paid for the property is not signed by the parties is considered to be:
B. void
Max makes an offer on Roberts house, Robert accepts, and Max is notified of the acceptance. Both parties sign the sales contract. At this point, Max has what type of title to the property?
D. Equitable
A seller gave a listing to several brokers, specifically proising that if one of the brokers found a buyer for the real estate, the seller would then pay a commission to the broker. This offer by the seller is what type of agreement?
B. Unilateral
A contract is said to be bilateral if
B. all parties to the contract are bound to act
In the completion of a promulated contract form, several words were crossed out and others intserted. To eliminate future controversy as to whether the changes were made before or after the contract was signed, the broker should.....
have both parties initial or sing in the margin near each change
If after the sales contract is sined, the seller decides not to sell,
the buyer may insitute a suit for specific performance of the contrat and/or for money damages
Under the statute of fradus, contracts for the sale of real estate must be
B. in writing to be enforceable
During the period after a real estate sales contract is signed but before title actually passes, the status of the contract is....
D. executory
QQQ
Which is NOT one of the elements for a valid contract?
D. earnest money
QQQ
Ramon has a contract to buy property but would rather let his friend Mark buy it instead. If the contract allows, Mark can take over Ramon's contract rights by the process known as
B. assignment
Stella makes an offer to purchase certain property listed with a broker Sam and leaves a deposit with the broker to show good faith. When the contract is accepted, Sam should....
deposit the funds in an escrow account of a title company within two working days
QQQ
Which BEST describes the contract for deed or installment contract?
A. a method of selling real estate whereby the purchaseer pays for the property in regular installments while the seller retains title to the property
When a real estate sales transaction is to be closed through an escrow agent,
a. the seller and escrow agent execute a separate escrow agreement
b. the buyer's purchase-money mortgage and note are deposited with the escrow agent
c one of the parties to the contract is usually appointed as the escorw agent
d. the buyer sets forth the obligations of the escrow agent
b. the buyer's purchase-money mortgage and note are deposited with the escrow agent
A contract may be discharged by all EXCEPT which of the following means?
A. change in the marital status of one party
A suit for specific performance of a real estate contract ask for
D conveyance of the property
When a broker uses a client's earnest money for his or her own personal use, the broker is guilty of...
A conversion
An option-to-purchase agreement
A. is generally limited to a fixed price within a specified time period
Under contract for deed, the purchaser...
B. is required to pay taxes and insurance on the property
QQQ
In Texas, who is authorized to draft deeds, mortgages, deeds of trust and notes?
an attorney licensed to practice law
Define Contract
a voluntary, legally enforceable promise between two competent parties to perform some legal act in exchange for consideration
DEFINE bilateral contract
contract that must have two promises
DEFINE unilateral contract
contract that has only one promise
Offer and acceptance are not present if
what 4 items are involed?
misrepresentation, fraud, undue influence or duress are involved
Give legal effect of
VALID contract
binding and enforceable on both parties
EXAMPLE: agreement complying with essentials of a valid contract
Give legal effect and example of
VOID CONTRACT
legal effect: none, no legal effect
example: contract for an illegal purpose
Give legal effet and example of
VOIDABLE contract
Legal effect: valid, but may be disaffirmed by one party
Example: contract with a minor
Give legal effect and example of
UNENFORCEABLE contract
legal effect: valid between the parties, but neither may force performance
Example: certain oral agreements
NOTE: If a licesne holder, who has authority to bind a party to lease or sale under a power of attorney or a property management agreement, executes the agreement, that license holder is also considered to be a party to the lease or sale
assignment =
subsitution of parties
novation =
subsitution of contracts
What effect does a counteroffer have on an offer?
it is a rejection
Who must sign or nitial contract?
buyers and sellers
Where are the IRS regulations cited in a contract
paragraph 20
Is earnest money necessary to make contract binding? why is it collected?
no, it a gesture of good faith
What are loan fees based on?
loan amount
What does rescission mean
cancel or terminate
What s Consideration?
$$$, sales price
What offers must be presented to the seller? When deos an offer become a contract?
all, unless seller provided other instructions
when parties accept and contract is signed by both
Can oral contracts be enforced?
NO
What is a suit for specific performance?
lawsuit demanding seller to sell or buyer to buy
Who does escrow protect?
both principals
What is the name of the law that requires a real estate contrat to be in writing?
Statute of Frauds
What is difference between void and voidable?
void: never existed
voidable: can be void if terms can not be met
define "liquated damages"
earnest $$
what is a contract for deed?
buyer gets deed when debt is paid
buyer pays taxes, insurance and upkeep
who makes final deecision on mortage loan for lender?
underwriter
what is the broker-lawyer committee?
13 members who update contracts
(6 brokers, 6 lawyers, 1 member at large)
who does a title insurance policy protect?
buyer, lien holder
what are the exceptions to use of Promulgated forms
agent is principal
HUD Repo???
new home
no form exists
when must the amendment addendum be used
when a change to contract is made
define comingling
mixing $$$
When is a broker allowed to give legal advice or draft legal instruments
