Contracts in Real Estate Transactions Chapter 6

Contracts in Real Estate Transactions Necessary Elements of a Contract –Offer and acceptance, Counteroffer –Consideration - Give up something –Capacity of parties - Competency –Lawful purpose –Writing requirement Statute of frauds - prevents fraud Partial performance - inferred oral contract

Contracts in Real Estate Transactions Real Estate Sales Contracts –Description of property and fixtures, FF&E –Purchase price –Title - Type Deed –Escrow Provisions for earnest money deposit - Broker –Property destruction –Miscellaneous provisions - Inspections –Broker’s commission - Seller paid

Contracts in Real Estate Transactions Escrow Arrangements –Delivery and acceptance –Escrow agent –Protection of the buyer - Seller creditors

Contracts in Real Estate Transactions Option-to-Buy Contracts –Gives one party the right to buy (but not the obligation to) for a specified price within a specified time

Contracts in Real Estate Transactions Performance and Breach of Contract –Breach - Failure to perform –Specific performance - Sue to require performance –Remedies for breach of contract - Seller earnest money