Real Estate Principles

  1. Acceptance
    When the seller's or agent's principal agrees to the terms of the agreement of sale and approves the negotiation on the part of the agent and acknowledges receipt of the deposit in subscribing to the agreement of sale, the act is termed acceptance
  2. Assignee
    Those to whom a lease shall have been transferred or assigned
  3. Assignment
    A transfer or making over to another of the whole of any property, real or personal, in possession or in action, or of any estate or right therein. (The transfer of an entire leasehold estate to a new person)
  4. Assignor
    One who assigns or transfers the claim, benefit, or right in property
  5. Bilateral Contract
    A contract under which the parties enter into mutual promises, such as sales contracts.
  6. Breach
    The breaking of a law, or failure of duty, either by omission or commission
  7. Capacity of Parties
    Individuals who have a legal capacity to contract, as opposed to minors, convicts and incompetents
  8. Consideration
    Anything given or promised by a party to induce another to enter into a contract.
  9. Contingencies
    The dependence upon a state event before a contract becomes binding
  10. Contract
    An agreement, either written or oral, to do or not to do certain things.
  11. Counter Offer
    An offer in response to an offer.
  12. Covenant
    Agreements written into deeds and other instruments promising performance or nonperformance of certain acts or stipulating certain uses or nonuses of the property.
  13. Definite and Certain
    The terms and provisions of a contract, which are clear, definite, and set forth.
  14. Dollar Damages
    An action that abandons all other remedies and simply asks for money
  15. Execute
    To complete, to make, to perform, to do, to follow out; to execute a deed, to make a deed, including especially signing, sealing, and delivery; to execute a contract is to perform the contract, to follow out to the end, to complete.
  16. Executory Contract
    A contract in which something remains to be done by one or both the parties
  17. Expressed Contract
    A contract under whichthe parties expressly enter into mutual promises
  18. Fraud, Duress, Menace
    Deceptive statements or acts used to wrongfully obtain money or property
  19. Implied Contract
    A binding contract created by the actions of the principals rather than by written or oral agreement.
  20. Incompetent
    One who is mentally incapable of contracting; judged to be of unsound mind, therefore lacking contractual capacity
  21. Liquidated Damages
    A sum agreed upon by the parties to be full damages if an agreement is breached
  22. Minors
    All persons under 18 years of age who are not emancipated
  23. Mutual Consent
    The act of agreeing or consenting to the terms of an offer, thereby establishing "the meeting of the minds" that is an essential element of a contract; genuine assent from both parties
  24. Novation
    The substitution or exchange of a new contract for an old one by the mutual agreement of the parties
  25. Offer
    A proposal for acceptance, in order to form a contract. It must be definite as to price and terms
  26. Offeree
    One to whom an offer is made
  27. Offeror
    One making an offer
  28. Option
    A right given for a consideration to purchase or lease a property upon specified terms within a specified time.
  29. Optionee
    One who, for consideration, receives an option
  30. Optionor
    One who, for consideration, gives an option
  31. Pest Control Report
    An inspection report required, in the sale of property, to determine if termites are present within a building
  32. Purchase Agreement
    A written offer to purchase real property upon stated terms and conditions, accompanied by a deposit toward the purchase price, which becomes the contract for the sale of the property upon acceptance
  33. Rescission
    Annulling a contract and placing the parties to it in a position as if there had not been a contract.
  34. Specific Performance
    An action to compel performance of an agreement, e.g., sale of land
  35. Undue Influence
    Taking any fraudulent or unfair advantage of another's weakness of mind, distress, or necessity
  36. Unilateral Contract
    A contract under which only one party expressly makes a promise.
  37. Valid Contract
    Legally binding, the terms of which can be sued for in a court of law
  38. Void, Voidable, Unenforceable
    Having no legal force or binding effect, or cannot be enforced for one reason or another
  39. The primary responsibility for disclosing any Mello-Roos bonds or assessements to a buyer when a home is sold lies with?
    The Seller
Card Set
Real Estate Principles
Chapter 5: Contracts