Term
| Elements of a Valid Contract |
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Definition
Lawful Subject
Agreement
Consideration
Two or more competent parties |
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Term
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Definition
Express contract
Implied contract
Bilateral contract
Unilateral contract |
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Term
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Definition
| enacted in England in 1677 to provide protections against fraud in the sale of real property. It requires a contract for the transfer of a right or interest in land to be in writing to be enforceable. does not make oral contracts invalid. |
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Term
| Elements of an ENFORCEABLE real estate contract |
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Definition
| COLIC: Competent parties, Offer and acceptance, Legality of the subject, In writing, Consideration |
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Term
Termination of Offers
Offers are terminated by any of the following |
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Definition
| WILD CARD: Withdrawal, Insanity, Lapse of time, Death of either party, Counteroffer, Acceptance, Rejection, Destruction of the property |
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Term
| Six ways to terminate a contract |
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Definition
| BRRLAP: Breach, Renunciation, Revocation, Lapse of time, Abandonment, Performance |
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Term
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Definition
provides time limits within which parties are allowed to bring legal action to enforce their rights under a contract. Parol Contracts - oral contracts action must be brought within 4 years.
Written Contracts - in writing action is brought within 5 years |
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Term
Action for a Declaratory Judgement
Construction |
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Definition
| A court's interpretation of a contract |
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Term
| Legal remedies for breach of contract |
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Definition
Suit for cancellation
Suit for specific performance
Suit for damages |
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Term
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Definition
Liquidated damages - agreed and specified in the contract...spelled out
Unliquidated damages - not specified, determined by a court "construction". |
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Term
| Written Listing Contracts contain what elements |
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Definition
Definite termination date
Legal description of property
Price and Terms offered
Fee or commission to be earned by broker
Signature of the property owner
LISTING AGREEMENT MUST BE DELIVERED TO PROPERTY OWNER WITHIN 24 HOURS OF EXECUTION |
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Term
| Types of Listing Contracts |
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Definition
Open Listing
Exclusive Listing
Commercial Listing
Net Listing |
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Term
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Definition
- is a Unilateral contract and may be oral or written
- Owner promises to pay a commission if the broker finds a buyer willing to purchase the property at a price and at terms that are acceptable to the owner.
- may give to any number of brokers for the sale of same property
- Reserves the right to sell the property himself without paying a commission.
- Procuring cause - the broker who successfully performs by providing a "ready, willing and able" buyer is said to have procuring cause and is the only broker to get commission
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Term
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Definition
- is a unilateral contract in which the property owner promises to list the property with ONLY ONE BROKER.
- Owner promises to pay a commission IF the broker successfully performs
- Owner reserves right to sell property himself and does not have to pay commission if he does
- may be oral or written
- if broker is employed as a single agent, this type of listing may be referred to as an EXCLUSIVE AGENCY LISTING
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Term
Exclusive Right of Sale Listing |
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Definition
- is a bilateral contract in which the owner agrees to pay a commission regardless of who sells the property
- if property is sold by owner or by using another broker, the broker who has this listing is still entitled to commission
- must be in writing
- this type gives broker the BEST PROTECTION of the three types
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Term
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Definition
- owner agrees to accept a stipulated amount and no less, upon sale of property.
- broker retains all money over the owners stipulated amount
- sellers net plus commission and closing costs is equal to the total sales price or property.
- if broker sells the property for more than the listed price, any excess above the broker's agreed upon commission must be paid to the SELLER.
- Legal in Florida
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Term
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Definition
| brokers inser a protection period into their employment contracts for a specified period of time following the expiration of the contract. If the owner sells the property during this period to anyone the broker had dealings with during employment period, the broker is entitled to compensation. |
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Term
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Definition
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Term
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Definition
- not written
- when an owner allows a broker to show to purchasers and the property is sold, the broker is entitled to commission.
- if a broker has performed but seller refuses to pay, the broker may bring legal action to enforce collection of a commission or fee
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Term
Termination of a listing
Listings are terminated as the result of any of the following |
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Definition
- Breach
- Remunciation
- Revocation
- Lapse of Time
- Abandonment
- Performance
- Destruction of the property
- Death or insanity
- Bankruptcy
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Term
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Definition
- An option contract is the RIGHT to buy a property during a specified time period, it is not an obligation to buy as in a sales contract.
- is a unilateral contract
- definite valuable consideration is necessary to acquire the right to buy, called option money
- must be in writing
- must show price and terms
- length of time
- legal description
- consideration - option money, definite valuable consideration
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Term
Real Estate Sales Contracts
purchase and sale contract |
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Definition
- agreement between a property owner and a potential purchaser
- competent parties
- lawful subject matter
- meeting of the minds
- consideration
- are bilateral - the vendor promises to sell and the vendee promises to buy
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Term
Real Estate Brokers can legally prepare |
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Definition
SOLD
- Sales contracts
- Option contracts
- Listings
- Deposit receipts
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