Term
| Introduction to Real Estate Sales |
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Definition
| Contracts play a major role in real estate transactions. Most sales of residential real estate are completed with the assistance of a real estate broker. |
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Term
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Definition
In the typical real estate transaction there are two significant contracts:
1) the listing agreement between a seller and a realtor
2) the agreement of sale between the seller and the purchaser |
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Term
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Definition
| Every contract starts with an agreement, an offer, and an acceptance of the specific offer |
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| Every contract must be accompanied by consideration. Consideration in contract law is anything of value given in exchange for a promise. |
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Term
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| Contracts in which either or both of the parties lacks capacity are called voidable contracts, because the party claiming a lack of capacity may be able to avoid the contract being enforced against them. Capacity is the legal ability to enter into a contract, including being of legal age, called the age of majority |
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Definition
| A contract that requires that the object or purpose of the contract must be legal |
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Term
| The Relationship Between the Seller and Broker |
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Definition
| A seller typically uses a real estate professional to help market and sell the property and will sign a listing agreement or listing contract. The listing contract is an agency relationship between the seller (the principal) and the broker (the agent) |
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Term
| Creation of Agency Relationship |
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Definition
| An agency relationship is formed by mutual agreement where one party, the principal, agrees that another, the agent, shall act on his or her behalf, at the principal's direction, and under the principal's control. |
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Term
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Definition
| When a broker/agent represents both the buyer and seller in a real estate transaction. |
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Term
The Listing Contract- What is it generally?
What are the different types- generally? |
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Definition
Listing Contract gives the broker/agent the right, under agreed terms and conditions, to sell a property in exchange of payment in the form of a sales commission
1) open listing
2) flat fee listing
3) net listing
4) exclusive agency agreement |
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Term
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Definition
| In an open listing, the seller grants the right to market and sell the property to a number of broker at the same time. |
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Term
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Definition
| the seller and broker/agent agree to a set compensation amount unrelated to the sale price |
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Term
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| the broker/agent earns a commission only on the part of the sales price that exceeds a stated price |
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Term
| Exclusive agency agreement |
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Definition
| In an exclusive agency agreement, the broker is the sole, exclusive agent, with the exclusive right to sell the property |
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Term
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Definition
| A detailed statement prepared by the seller concerning the property and its condition. This type of disclosure form as ecome common in most states |
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Term
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Definition
| The Sales Agreement or Agreement of Sale is the written contract between the seller and buyer that sets the terms for the purchase and sale of real property. As the agreement affects an interest in land, it must be in writing as required by the Statute of Frauds |
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Term
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Definition
| The real estate for the buyer will draft an Agreement of Sale which is referred to as an offer to purchase real estate. this offer is then delivered to the seller's real estate agent who prseent the offer to the seller. The seller may accept, reject, or prepare a counteroffer. |
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Term
| Time Being of the Essence |
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Definition
| Every contract for the sale of real estate has a provision stating that time is of the essence. This phrase has been interepreted to mean that the times, dates, and deadlines set forth in the contract are essential to fulfillin the terms of the contract. |
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Term
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Definition
| Arbitration is a form of alternate dispute resolution where the parties submit their dispute in an informal manner to panel of arbitrators. The arbitrators then issue a decision. this procedure is much faster than resorting to the court system. |
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Definition
Items that must be statisfied in order for the sale to go forward. Any contingency that is not satisfied will end the contract.
Common contingencies in mot agreements of sale:
1) Mortgage
2) Sale of another home
3) Inspections |
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