Maryland Real Estate - Chapter 11

what is a contract

a legally brinding agreement between parties

what is express contract

when terms and intentions are in written or oral agreement, typical in real estate

what is implied contract

agreement through expression or action

what is bilateral contract

when both parties mutually agree to something, like a barter or exchange

what is a unilateral contract

one sided agreement, to entice the other, the second party isnt legally obligated to act.

what is an executed contract

all parties have fulfilled their promiseswh

what is an executory contract

when someone hasnt fulfilled their promise yet, usually the time in between offer and closign

what is offer and acceptance

when a buyer submits and offer and the seller accepts

what is mutual assent

meeting of the minds, crucial for offer and acceptance

what is a counteroofer

change to the original offerwh

what happens to the original offer with a counteroffer

it becomes terminated

when is another time a contract can terminate

if the offeree doesnt accept the offer in time

what is consideration

something offered in exchange for a good or service

what happens with revocation

the offeror has to tell the offeree they are removing their offer

what is a valid contract

it meets every element to be legally binding and enforceable

what is a void contract

no legal force happens because an important element is missing

is a void contract legal

no, it never was

what is a voidable contract

it appears valid but one of the parties has the ability to void it, minors have the greatest upperhand in this

what is an enforceable contract

meets all the required elements and it is signed

what is an unenforcable contract

neither party has the ability to sue the other, typically in oral agreements

what is time of the essence

each contract element must be signed within a specific amount of time

what is assignment

transfer of rights or duties, explains what is acceptable or forbidden

what is novation

subbing a new contract for an old one, typically if a lot or serious changes need to be made

what is breach

a violation of any terms in a contract, the breacher receives the burdens

what is a suit for specific performance

when a buyer can sue a seller so that they must go through with a sale

what is liquidated damages

explains how much either can sue for damages, either earnest money or a specific percentage

what are some reasons for termination

partial perfomance

substantial performance

perfomance impossibility

mutual agreement

operation of law

what is recission

when everything is returned to the owner like before the contract, typically a rememedy for breach

what forms can a real estate agent fill

pre-printed forms only

when is na offer accepted

once the offeror has been notified that the offeree has accepted

what is a binder

it is the essnetial terms of an offer and guarantees the buyer deposit has been made

what is earnest money

its a deposit made that the buyer is serious and plans to purchase in good faith

where do escrow funds, like earnest money go

they must be held in their own bank account but all escrow funds form multiple accounts can also be kept here

what is equitable title

gives buyer insurable interest in the land until delivery and acceptance of deed has been made

what is contingencies

conditions to be satisfied before a sales contract

what is mortgage contingency

protects buyers earnest money if they cannot obtain a mortgage

what is inspection contingency

buyer can get inspection and cancel contract if thats not satisfactory

what is property sale contingency

buyer can only buy a home if their home sells

what is lineholder approval

typically a short sale

what is an escape clause

seller can keep the home on market until all buyer contingencies are met

what is an amendment

a change in the exisiting contract, can be added to or just change words, all parties must agree

what is an addendum

addition to a contract

what is a disclosure

tells of the properties condition and is included in the sales contract

what is an option

optionor gives optionee ability to buy or lease a property for a fixed price, optionee doesnt have to do it, but if they enact the offer, the optionor has to agree to it

what is owner financing

seller provides funding for all or part of a purchase through sellerwh

what is a land contract

when owner keeps title but buyer gets equitable title until all of the installments are complete and then the deed gets transferred to them

what is a purhcase money mortgage

buyer gets title but puts security interest in favor of the seller