RE Principles/Unit 4
Terms
undefined, object
copy deck
- What is a Contract?
- An promise made by two people to do or refrain from doing something.
- What are the 5 elements of a contract?
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1-Legal Capacity
2-Offer by one party
3-Acceptance by the other party
4-Consideration/payment
5-It may have to be in writing - Void Contract
- One that has no legal effect from inception. (an agreement to do something illegal)
- Voidable Contract
- One that may be disavowed by one or both parties, depending on the circumstances (Like one signed while intoxicated).
- Unenforceable Contract
- One valid on its face, but its enforcement would violate some law (An oral contract when law dictates it most be in writting).
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Contracts by Business
Sole Proprietor - One who acts in his or her own name, or with a spouse
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Contracts by Business
A business entity can make a contract concerning real estate
Partnership - May hold real property in the name of the partnership, the name of one of the partners, or the name of a trustee
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Contracts by Business
A business entity may make a contract concerning real estate
Corporation - Acts through its officers, as authorized by the board of directors. The directors may be personally liable for the actions taken on behalf ot the corporation.
- Revocation
- An offer may be revoked before it is accepted if the offeror communicates the revocation directly to the offeree
- Affirmative Fraud
- When it is a deliberate statement of a material fact that the speaker knows to be false and on which the speaker intends another person to rely, to his or her detriment
- Negative Fraud
- When it is a deliberate concealment of something that should be revealed.
- Actual Fraud
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Actions with an intent to deceive:
-Suggest a truth that you know is not
-Possitive assertion, belief is not justified
-Suppression of truth by one who knows
-Promise w/no intent to perform
-Any other acto fo deception - Alienate
- To make the title leave the owner by conveying the title to another.
- Amortization
- The (1)liquidation of a financial obligation on an installment basis (2)recovery of cost or value over a period of time.
- Blind Ad
- Advertising by a licensee who does not disclose in the ad that the property is offered through an agent rather than by the principal
- Capitalization of (net)Income
- Is an appraisal approach where net income is projected to a future date and discounted to today's rates to attract investors.
- Commercial Acre
- The remainder of an acre of newly subdivided land after deduction of areas devoted to streets, sidewalks, curbs, etc.
- Encumbrance
- Anything that affects or limits the fee simple title to real property.
- Administrator
- Appointed by the court when the deceased died without a will