Contract Law

RE05RC12

Jody O’Brien, GRI,CBR

CEU Outline

Con-tractCon-tract

1) binding agreement between two or more persons or parties; especially : one legally enforceable

2) a document describing the terms of a contract

Creating a ContractCreating a Contract

Expressed Written

Oral

Implied

Bilateral

Unilateral

Creation of a ContractCreation of a Contract

Competent parties

Offer and acceptance

Consideration

Legal object

Must identify the parties

Accurate description of property

Recital of consideration

Must be signed by all parties

Must be dated

Elements of a ContractElements of a Contract

No misrepresentation

Not fraudulent

No undo influence or duress

Listing ContractsListing Contracts

Listing Contracts are:contracts for service.

Exclusive right to sell Exclusive agency Open Listing Net Listing **net listings are illegal

Buyer Agency ContractsBuyer Agency Contracts

Buyer agency contracts are:contracts for service.

Exclusive buyer agency agreement Exclusive agency buyer agency

agreement Open buyer agency agreement

Offer to PurchaseOffer to Purchase

An Offer to Purchase is a:contract of sale of real property. parties description of property price terms

Offer to PurchaseOffer to Purchase

earnest money dates contingencies

Purchase & Sale AgreementPurchase & Sale Agreement

A Purchase & Sale agreement is a: contract for sale.

It can be viewed as the road map of the transaction.

Purchase & Sale AgreementPurchase & Sale Agreement

Minimum provision of the contract:

Parties (identification of buyers and seller)

Description of property Consideration Time for performance and possession Title Deed

Purchase & Sale AgreementPurchase & Sale Agreement

Adjustment (proration of … Casualty loss Default Contingencies clauses Construction of agreement Dates and signatures

Specific PerformanceSpecific Performance

Specific performance is when the seller is forced to transfer legal title and the buyer gets possession.

Legal title only transfers on delivery and acceptance of the deed.

Equitable TitleEquitable Title

After the buyer and seller have executed a sales contract, the buyer receives an interest in the land known as equitable title. This allows the buyer to sue in equity for specific performance if the seller refuses to perform under the contract of sale and the buyer is ready willing and able to perform.

TerminationTermination

Performance of the contract

Expiration of the time for performance

Partial performance with written acceptance by other party

Substantial performance

TerminationTermination

Impossibility of performance

Mutual agreement

Operation of law

Breach contract

Jody O’BrienThe RE/Education Company

Committed to Professionalism in Real Estate through Education

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