1. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases1 New York Real Estate for Salespersons, 5 th e By Marcia Darvin Spada Cengage Learning

2. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases2 Chapter 5 Contracts Part II The Contract of Sale and Leases

3. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases3 Chapter 5 Key Terms  “As is”  Assignment  Caveat  Caveat emptor  Contingencies  Contract  Counteroffer  Earnest money deposit  Executed contract  Executory contract  Forbearance  Liquidated damages  Novation  Offer and acceptance  Power of attorney

4. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases4 Chapter 5 Key Terms (continued)  Reformation  Rescission  Rider  Right of first refusal  Specific performance  Statute of Frauds  Statute of Limitations  Time is of the essence  Uniform commercial code

5. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases5 Types of Contracts  Express vs. implied  Bilateral versus unilateral  Executed versus executory  Valid  Enforceable or unenforceable  Void or Voidable

6. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases 6 Essentials of A Valid Contract Valid Contract Competent parties Lawful Objective Consideration In Writing Mutual Agreement

7. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases7 Termination or Discharge of Contracts Agreement of the Parties Impossibility of Performance Operation of Law Full Performance

8. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases8 Contract Remedies Breach of Contract Specific Performance Rescission Compensatory Damages Liquidated Damages ReformationInjunction

9. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases9 Sales Contracts Counteroffer Acceptance Earnest money deposit Purchase offer

10. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases10 Possible Contract Disclosures  Agency  Radon  Lead-based paint  Attorney review  Pest inspection  Home inspection  Uncapped gas wells

11. © 2013 All rights reserved. Chapter 5 Part II The Contract of Sale and Leases11 Other Types of Contracts Installment sales Lease with option to buy Cooperative contract Binder- instead of purchase offer