Real Estate Contracts

Vocabulary flashcards for key terms related to real estate contracts and agreements.

Contract

A legally binding agreement between two or more parties.

Simple Contract Creation

Involves no written agreement, based on actions.

Contract by Deed

Must be written, signed, and witnessed, used for more serious matters.

Bilateral Contract

Both parties make promises to each other.

Unilateral Contract

One party makes a promise in exchange for a specific act.

Valid Contract

Contract that contains all of the essential elements.

Voidable Contract

A contract where one party lacks competence (e.g., under 18 or not of sound mind).

Void Contract

Not a contract because it lacks essential valid elements from the start.

Unenforceable Contract

A contract that was once valid but is no longer enforceable due to a change in law or expiration.

Power of Attorney

Allows someone to act on your behalf, often in situations like incapacitation.

Attorney in Fact

The person who makes decisions or represents someone else through a power of attorney.

Contract Discharge

The end of parties' obligations, occurring when terms are fulfilled, by mutual consent, unforeseen events, breach, bankruptcy, or death.

Purchase Document

Outlines the terms under which a buyer agrees to purchase and a seller agrees to sell a property.

Form Contract

A pre-prepared legal document with set terms and conditions for efficiency and built-in protections.

Time is of the Essence

Any delay beyond the specified closing date may be considered a breach of contract.

Dry Closing

Documents are signed, but funding is delayed, pending lender approval or disbursement.

Assignability

Determines whether the buyer can transfer the contract to another party.

Listing Broker

Represents the seller and is responsible for marketing the property, setting the price, and negotiating offers.

Selling Broker

Represents the buyer in a real estate transaction.