Podcast
Questions and Answers
Which scenario demonstrates a situation where the Statute of Frauds would apply?
Which scenario demonstrates a situation where the Statute of Frauds would apply?
- An agreement to purchase office supplies for \$300.
- A service contract that can be completed within one year.
- A contract for the sale of land that is not in writing. (correct)
- A verbal agreement to lease a residential property for six months.
Which of the following actions would most likely result in the 'rescission' of a contract?
Which of the following actions would most likely result in the 'rescission' of a contract?
- One party breaches the contract, and the other party seeks monetary damages.
- A court orders specific performance, requiring a party fulfil their contractual obligations.
- One party finds a better deal elsewhere and wants to terminate the agreement.
- Both parties mutually agree to terminate the contract and return to their original positions before the contract. (correct)
A homeowner hires a contractor to repair their roof. Although there is no written contract, the contractor begins the work, and the homeowner makes regular payments. What type of contract is this?
A homeowner hires a contractor to repair their roof. Although there is no written contract, the contractor begins the work, and the homeowner makes regular payments. What type of contract is this?
- Quasi Contract
- Express Contract
- Implied Contract (correct)
- Unilateral Contract
In a real estate transaction, what constitutes 'consideration' from the buyer's perspective?
In a real estate transaction, what constitutes 'consideration' from the buyer's perspective?
A tenant's lease includes a clause guaranteeing 'quiet enjoyment'. If a landlord repeatedly enters the property without notice for unnecessary inspections, what right is the landlord violating?
A tenant's lease includes a clause guaranteeing 'quiet enjoyment'. If a landlord repeatedly enters the property without notice for unnecessary inspections, what right is the landlord violating?
A commercial lease requires the tenant to pay a fixed monthly rent plus a portion of the building's property taxes, insurance, and maintenance costs. What type of lease is this?
A commercial lease requires the tenant to pay a fixed monthly rent plus a portion of the building's property taxes, insurance, and maintenance costs. What type of lease is this?
A tenant's initial one-year lease is expiring. The lease includes an 'option to renew' clause. To exercise this option, what action must the tenant typically take?
A tenant's initial one-year lease is expiring. The lease includes an 'option to renew' clause. To exercise this option, what action must the tenant typically take?
A prospective buyer offers $300,000 for a house. The seller responds with a price of $310,000. What is this response called?
A prospective buyer offers $300,000 for a house. The seller responds with a price of $310,000. What is this response called?
A tenant is obligated to pay property taxes, insurance, and maintenance costs in addition to rent. What type of lease agreement is this?
A tenant is obligated to pay property taxes, insurance, and maintenance costs in addition to rent. What type of lease agreement is this?
Which of the following scenarios BEST exemplifies the concept of 'Specific Performance' in a real estate contract dispute?
Which of the following scenarios BEST exemplifies the concept of 'Specific Performance' in a real estate contract dispute?
A buyer makes an offer on a property, but includes a clause stating that the purchase is contingent on securing a mortgage at a specified interest rate. What is this clause known as?
A buyer makes an offer on a property, but includes a clause stating that the purchase is contingent on securing a mortgage at a specified interest rate. What is this clause known as?
A potential buyer is granted the exclusive right to purchase a property within the next 60 days at a predetermined price. This agreement BEST describes what?
A potential buyer is granted the exclusive right to purchase a property within the next 60 days at a predetermined price. This agreement BEST describes what?
A real estate investor obtains a contractual right that allows them to be first in line to purchase a property if the owner decides to sell. This right is known as:
A real estate investor obtains a contractual right that allows them to be first in line to purchase a property if the owner decides to sell. This right is known as:
In which situation would a lease be considered 'void'?
In which situation would a lease be considered 'void'?
What is the legal principle that requires a party to fulfill their contractual obligations within the timeframe specified in the agreement, or risk breach of contract?
What is the legal principle that requires a party to fulfill their contractual obligations within the timeframe specified in the agreement, or risk breach of contract?
A commercial lease includes a clause where the rent increases by $500 every year. This type of lease is BEST described as a:
A commercial lease includes a clause where the rent increases by $500 every year. This type of lease is BEST described as a:
A property owner allows a tenant to occupy a property without a formal lease agreement, and either party can terminate the arrangement at any time. What type of leasehold estate is this?
A property owner allows a tenant to occupy a property without a formal lease agreement, and either party can terminate the arrangement at any time. What type of leasehold estate is this?
Which of the following actions violates a tenant's right to 'quiet enjoyment'?
Which of the following actions violates a tenant's right to 'quiet enjoyment'?
Flashcards
Statute of Frauds
Statute of Frauds
State law requiring certain contracts to be written for legal enforcement.
Express Contract
Express Contract
A contract with specifically stated elements and terms.
Rescission
Rescission
Returning to the pre-contract state due to the contract not being legally binding.
Implied Contract
Implied Contract
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Consideration
Consideration
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Lessor
Lessor
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Lessee
Lessee
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Net Lease
Net Lease
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Leasehold Estate
Leasehold Estate
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"As-is"
"As-is"
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Mortgage Contingency Clause
Mortgage Contingency Clause
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Assignment
Assignment
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Option
Option
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Triple Net Lease
Triple Net Lease
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Specific Performance
Specific Performance
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Quiet Enjoyment
Quiet Enjoyment
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Study Notes
- State laws requiring certain contracts to be written for legal enforceability are known as the Statute of Frauds.
- An express contract explicitly states all elements and terms.
- Rescission is the right to return to the pre-agreement state if a contract isn't legally binding.
- An implied contract is created through actions, not writing or speech.
- Consideration is something of value (e.g., money, services) given to induce a contract.
Leasing
- A lessor rents property to another party.
- A lease transfers real property rights for a specified time in exchange for rent.
- Quiet enjoyment is the right to use property without interference.
- A lessee is the one renting property under a lease.
- A net lease requires the tenant to pay some or all property expenses in addition to rent.
Lease Types and Regulations
- An option to renew outlines terms for lease renewal or extension.
- An estate for years lasts for a specified period and doesn't automatically renew.
- A periodic lease (tenancy from year-to-year, etc.) exists for a term determined by rent payments.
- State statutes regulate rent-controlled apartments by limiting annual rent increases.
- Landlords with buildings over 6 units must keep security deposits in a separate bank account.
Contract Essentials
- A counteroffer is a response to an unacceptable offer.
- An earnest money deposit demonstrates good faith from a real estate purchaser.
- Offer and acceptance is the expression of contract terms and agreement to those terms.
- A leasehold estate is the interest a lessee has in real estate via a lease.
- Recording is NOT an essential element of a valid contract.
- "As-is" signifies the property is being sold in its current condition.
- A lawful objective is an essential element of a valid contract.
- Forbearance is an agreement to delay foreclosure.
- A lease transfers property rights for rent.
- A mortgage contingency clause makes a contract binding only if a mortgage is obtained.
- A net lease involves the tenant paying rent plus property expenses.
- Assignment is the transfer of a right or contract.
- An option is the right to purchase or lease property within a set time.
- Being in-writing, and signatures, NOT notarization (not mentioned), is an essential element of a valid contract.
- A triple net lease involves the tenant paying rent plus common expenses.
- Specific performance is a court order to perform a specific contractual act.
- Caveat emptor is Latin for "let him beware".
- "Time is of the essence" means timely performance is crucial.
- Void means having no force or effect.
- The statute of limitations bars actions after a certain time.
- Right of first refusal allows a holder to enter a transaction before a third party can.
- An estate at will can be canceled by either party at any time.
- A graduated lease changes rent amounts at set intervals.
- Quiet enjoyment ensures property use without interference.
- A lessee is the person property is rented to.
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Description
Overview of contract law principles including the Statute of Frauds, express and implied contracts, and consideration. Also covers leasing agreements, lessor/lessee roles, and different types of leases such as net leases and estates for years.
