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20 Cards in this Set
- Front
- Back
Offer to Purchase Contract; Real estate sales contract
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Sets forth all details of the agreement between a buyer and a seller for the purchase and sale of a parcel of real estate
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Contingencies
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Conditions set forth in an offer to purchase real estate
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An offer made, an acceptance of that offer, and communication of the acceptance to the other party
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What is required to form a valid real estate sales contract? 3 things
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Offeror
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Anyone who makes an offer to purchase property
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Offeree
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Anyone who receives an offer
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Acceptance
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This occurs when the offeree signs the offer without making any changes to it
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Counteroffer
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When the offeree receives the offer and makes any changes to that offer
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It has been rejected and no longer exists
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When an offer a received the offer and makes changes to that offer (counteroffer), what is the status of the original offer?
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Mailbox rule, does NOT apply to FedEx or UPS, and only applicable to the CREATION of a contract
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If an acceptance is placed into the mail service to the other party or that party's agent, it is considered as having been delivered when mailed
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One banking day after written request from seller, seller has unilateral right to terminate the contract afterwards
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Number of days buyer has to cover dishonored funds ( such funds being due diligence fees, etc. which were paid directly to seller with an Option to Purchase Contract)
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3 banking days of contract formation (or sooner if agent so chooses)
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Number of days earnest money must be deposited into a trust account by broker
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The date when the last offeree to sign the offer or initial the last change COMMUNICATES this action to the last offeror
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How is the effective date defined when an option to purchase becomes a contract?
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At closing, which is officially after recordation of the deed
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At what point does the purchaser of a property officially take possession?
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Upon recordation of the deed
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When is the closing on a property official?
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Immediately, but no later than 5 days from the date of the offer (telephoning not considered sufficient delivery)
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When are real estate brokers obligated (by license law and commission rules) to disclose all offers to seller?
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Installment land contract
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A combination sales contract and financing instrument, whereby the seller agrees to owner financing with some type of installment payment method for the buyer
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Conventional option to purchase realestate (unilateral contract, Optionee has right to buy and owner is obligated to sell if the Optionee decides to exercise the option)
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A contract by which an optionor gives an optionee the irrevocable right to buy or lease the owner's property at a fixed price within a stated period of time (initiated by buyer / tenant)
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Preemptive right (the two types are: right of first refusal and right of first opportunity to purchase)
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Gives a party the first right to purchase real property (initiated by seller / landlord)
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Right of first refusal
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A preemptive right created when a property owner promises to give the contracting party the first chance to buy the property or to match the bona fide offer of a third party, should the owner decide to sell some time in the future (*no terms are pre negotiated)
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Right of first opportunity to purchase
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A preemptive right given a particular buyer whereby if the property owner decides to sell the property, the seller must offer to sell the property to this buyer (*at a designated price) first.
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