Unit 5 Real Estate Contracts Flashcards

Unit 5 Real Estate Contracts Flashcards "Time is of the essence" means that the contract must be performed within the time limit specified True an implied contract exists when the parties state the terms and show their intentions using words False, implied contracts are created by actions. oral is express contract.an express contract may either be oral or written T if a party to a contract is a minor, or was subject to fraud, duress, or misrepresentation, then the contract is void.false, it is voidable a competent party is typically considered to be someone who is at least 21 years old and is sane and sober false, 18 an addendum is attached to an offerT an option contract is a bilateral contract. False, it uni-lateral The grantor becomes the lessor in a sale-leasebackfalse, the grantor becomes the lessee mutual agreement means that the parties enter the contract freely and voluntarily T a contract that is binding and enforceable in court is validT with out a lawful objective, a contract is void. T Amendments modify a contractTrue, A lawsuit in which one party to a contract sues the other party to perform the terms of the contract is specific performance the statue of frauds requires documents to be in writing, while the statue of limitations sets the amount of time that lawsuit can be filed True if a party to a contract does not abide by the terms of the contract, that party will be in breach T In a deed one party has to be competent and in a contract both parties have to be competent T in a commercial fixed lease, the tenant pays some or all of the property expenses in addition to the rent. (t/f) false, in Gross/Fixed only pays the rent .in a unilateral contract , a promise is exchanged for a performance and the contract is binding only on the person who made the promise.T Essential elements of a contract (1-5)1. Competent parties2.meeting of minds3. lawful objective4.consideration5.in writing and signed Consideration in a contract must be a stated amount of earnest money F, earnest money is not required the tenant may terminate the lease through ---- if the landlord is in breach.constructive eviction a void contract lacks one ore more of the essential elements T the tenant pays a base rent plus a portion of sales in apercentage lease

An assignment is the transfer of rights under a contract.True, An assignment is the transfer of rights but not liability in a purchase agreement, the seller holds ------- title and the buyer holds ------l title Legal , equitable when a new contract replaces the existing one, it is called a novation True.A buyer who terminates a purchase contract per a contingency is in breach and will NOT have any earnest money returned.False, if you terminate a contract per a contingency it is not a breach An ---- is a contract in which the seller gives the buyer the right to buy or lease the property at a fixed price and fixed term.option according to the statue of frauds, all documents used in the transfer of real estate must be in writing and signed by the parties to be enforceable in court False, not all documents, leases less than 12 months don't require writing but everything else does a tenant pays a base rent plus a percentage of the expenses in a Net Lease The right of a landlord to evict a tenant in breach isActual Eviction an offer may be countered until there is a meetingof the minds True "Option: is a ----- but a "right of first refusal" is not a ---contract if the buyer does not complete all of the contractual duties by the time of closing, the seller could choose NOT to sure the buyer (T/F) T in bilateral contract, a promise is exchanged for a promise and the contract is binding on both parties T an offer becomes an executory contract upon communication of acceptance True a material fact is any fact that might change a decesionT