Law of contracts 2.0

An offer can be communicated by

Phone, fax, email, letter, hand delivery

What offers have to be presented

All of the offers

Counteroffer is a two step process-

1. Rejection of original offer

2. New offer

Counteroffer

Rejection of original offer

Acceptance of an offer means the party does so with _______ to the contract

No change

An agent should never discourage a party from consulting an ________ for advice

Attorney

The most common type of financing is obtained from

A third party

Earnest money is deposited when

The contract is signed, accepted, and communicated

What taxes are prorated?

Property taxes

Special provisions

Must be factual statements that don’t change the legality of the contract

One exception to Statue of Frauds

Lease agreement for one year or less

Oral lease for one year or less is

Valid and enforceable

Liquidated damages

Seller can choose to accept the buyers earnest money

A contingency is

A provision in a contract that requires a specific act or event happens for the contract to be binding

Sale of other property contingency

Purchase of the property is contingent on the sale and closing of the buyers existing property

Lead based paint

Under federal law, homes prior to 1978

Addenda

Attachment that adds

Promissory note

Unconditional promise to repay

Primary mortgage market

Market in which borrowers and mortgage lenders come together to create a negotiate the terms of a mortgage transaction

Mortgage servicer does what

Services a loan

A builder will use a blanket mortgage that will contain

A release clause

The borrower of a mortgage insurance premium (MIP) pays two premiums-

1. Upfront premium at closing

2. Annual premium

To participate in (VHAP) a veteran must obtain an

FHA, VA, or conventional loan

Residential Mortgage Loan Originator is mandated by

The SAFE act

Who oversees Equal Credit Opportunity Act (ECOA)

Consumer financial protection bureau (CFPB)

Redlining

Practice of refusing to provide financing in a particular area because of location

Who does redlining?

Banks

Equal Credit Opportunity Act (ECOA)

Equal chance to apply to credit

Acquiring property through a will is by a

Title by devise

Probate

Formal judicial proceeding to prove or confirm a will

Quitclaim deed

No guarantees, warranties, or covenants

-least protection

-divorce

Abstract of title

Complete title history of land

Final walk through

1-3 days before closing

RESPA prohibits

Kickbacks