terms of the contract. Example: An earnest deposit can be

CH. 7 transfer of interests in real property Flashcards

contract: what are the 4 elements needed for a contract to

be valid?

• Legally competent parties2. Offer and Acceptance3.

Consideration4. Legality of Object contract terms: earnest moneyCash deposit that shows buyer's intention to carry out the

terms of the contract. Example: An earnest deposit can be

taken in any form. Cash, check, personal property, a boat, or a diamond ring would be examples of possible earnest deposits that might be used. The key issue here is notification to the seller of the form of the deposit. The seller must agree in writing, and understand that the deposit being held by the broker is in a form other than money.

contract: bilateralone where there is a promise for a promise. Sales

contracts and listings are examples of bilateral contracts. In a listing contract, the seller promises to pay if the agent promises to procure a purchaser.ex. a sales contract-- a promise exchange for a promise (2 sides have to perform) statute of limitation periods1. to bring q court foreclosure to enforce a mechanics lien : 90 DAYS AFTER FILING THE LIEN2. to bring action for

removal of encroachments: 3 YEARS3. to bring action on

written contracts: 4 YEARS4. to bring action for recovery of

title to a property: 5 YEARS

contract: give an example of a situation where a contract

changes from bilateral to unilateral or vice versa

a lease option: a lease option is where you're leasing a

property for a certain period of time with the option to buy it.ex. a person moves in and pays the "option fee" upfront, which is the right to lease the property for a certain period of time with the option to purchase it at the end of the lease at the agreed upon price. seller decides to lease the property to the lessee for 2 years with an option to buy at the end of the two years. the lessee has 2 options...while the lessee is leasing out the property they are in a unilateral contract *buzz-word OPTION think UNILATERAL*if the lessee decides to buy the property it becomes a bilateral contract or sales contract what is a will?Transfer of Real Estate Upon the Death of the Grantor Which of the following is not a requirement of a will?A.Legal ageB. Proper wordingC. WitnessesD. Written in testator's handwriting

• Written in testator's handwriting

contract: implied agreement contractA contract under which the agreement of the parties is

demonstrated by their acts and conduct. Example: "I'll sell

you my house for $100,000. I will leave the microwave and the Toyota, but you cannot have the artwork. Let's just

shake hands, and we can close any time you're ready." Victoria decides not to lease the condo from Sanchez.(They have an oral agreement.) She tells him she has changed her mind the day before she had agreed to move

in. He has spent time and money getting the property ready for Victoria and is thinking of suing. Which type of contract applies to the situation?A. ValidB. UnenforceableC.VoidableD. Void

• Unenforceable

contract terms: assignment????Transfer of rights or duties to a third party, and the original

party remains secondarily liable. Example: A seller and

buyer have agreed to close on the purchase of a property.The buyer decides to sell or give his/her rights under the contract to another party. The contract may or may not allow this "Assignment" without the permission of the seller.If the new purchaser does not close, the original purchaser is still liable.