FL PL, Level 11 - Real Estate Contracts

contract

a legally enforceable and binding agreement between parties wherein a promise to do or not do something is given in exchange for consideration

option contract

a unilateral contract that gives the optionee a window of opportunity during which they can exercise an exclusive right to buy or lease a property; an option fee is paid for this right

culpable negligence

negligent conduct that is not intentional but involves a disregard of the consequences that will likely result

attorney-in-fact

a representative with power of attorney for another individual

competent

having the requisite ability, knowledge, or skill to do something successfully; a party's legal competency is required to enter into a valid contract

meeting of the minds

the fully agreed-upon exchange of promises by the parties to a contract; also known as mutual agreement or mutual assent

statute of frauds

a law requiring certain types of contracts, including those conveying interest in real property, to be in writing to be enforceable

statute of limitations

a legal concept that establishes time limits for bringing certain kinds of legal actions

unenforceable

lacking the essential elements necessary to be legally binding and obligate performance of a valid contract

valid contract

a contract possessing the essential elements necessary to be legally binding and obligate performance

void contract

a contract lacking one or more of the essential elements, resulting in its having no legal effect

voidable contract

a contract wherein the wronged party has the option to perform, enforce, or void the contract

bilateral contract

a contract wherein both parties are obligated to perform in an exchange of promises

unilateral contract

a contract wherein one party makes a promise and is obligated to perform if a second party chooses to accept the offer and perform in exchange for that which was promised

liquidated damages

damages established by the contract to be paid as compensation in the event of default

novation

a mutual agreement of the parties to replace an existing contract with a new one — often because there is also an agreement to substitute one party for another in the new contract; results in transferance of rights and obligations from assignor to assignee

exclusive-agency listing

an agreement in which the seller has an exclusive relationship with a broker but retains the right to sell the property themselves

exclusive-right-of-sale listing

an agreement in which the seller guarantees the named broker a commission if the property is sold, regardless who procures the buyer

net listing

an agreement in which the seller names a minimum sales price they will accept for a property, with any excess paid to the broker as commission

open listing

a nonexclusive listing agreement that gives multiple brokers (and seller themselves) the right to sell the property

assignment

the transference of rights and obligations in a contract from one party to another