About This Chapter
Introduction to Real Estate Contracts - Chapter Summary
This self-paced chapter provides a complete overview of real estate contracts to ensure you have a quality understanding of option contracts, installment sales, real estate sales contracts, types of contract breach, the importance of legal and equitable titles, and more. Completing this chapter will prepare you to do the following:
- List and discuss types of contracts used in real estate transactions
- Differentiate between executed and executory contracts
- Define valid, voidable, void and unenforceable contracts
- Describe right of rescission in real estate
- Detail methods for terminating an offer in contract law
- Discuss contract legal remedies
- Explain the purpose of statute of frauds contracts
- Outline the real estate negotiating process
Every lesson in this chapter is paired with a multiple-choice quiz designed specifically to test your understanding of main concepts and help determine your chapter progress. If you need to clarify any topics covered in the lessons, don't hesitate to reach out to our subject-matter experts via the dashboard. Our practice exam can confirm your overall comprehension of this chapter. These and other study tools are accessible 24/7, so you're able to study whenever your schedule permits.
1. Real Estate Sales Contract: Definition & Characteristics
How well do you understand the real estate purchase contract? In this lesson, learn about the real estate purchase contract, its characteristics, standard clauses and provisions, and the rights and obligations of each party.
2. Types of Contracts in Real Estate Transactions
Contracts are ever-present in real estate transactions. In this lesson, you'll learn about several different types of contracts used in real estate, including what they are used for and how they work.
3. Executed vs. Executory Contracts: Definitions & Differences
The main difference between an executed and executory contract is how quickly the contract's promise must be fulfilled. An executed contract must be satisfied immediately, while an executor contract has terms that will be fulfilled later.
4. Valid, Void, Voidable, and Unenforceable Contracts
There are several kinds of contracts. Some bind parties wholly, while others do not. The terms of the contract determine whether a contract can be fully executed.
5. Types of Contract Breach: Partial, Material, & Total
A contract is a form of agreement that is legally binding. When one of the contracting parties fails to hold up his or her end of the deal, a breach of contract results. There are three different types of breach of contract. This lesson explains partial, material and total breaches.
6. What is Right of Rescission in Real Estate?
Canceling an appointment or a magazine subscription is easy, but how does it work if you want to cancel a real estate contract? In this lesson, we will explore how rescission works in real estate.
7. Termination of an Offer in Contract Law: Methods & Examples
There are several ways in which a contract can be terminated, including performance, impossibility of performance and breach of contract. Other ways to end a contractual agreement are a bit more complicated and involve a prior commitment on the part of one or both of the parties or even revocation.
8. Legal Remedies in Contracts: Definition & Acts
When one party breaches the terms of a contractual agreement, the court uses any of several remedies to make the injured party whole. These remedies include compensation, consequences for breach, punishment, nominal fines, liquidation and mitigation.
9. Statute of Frauds Contracts: Definition & Purpose
A statute of frauds is a state law that applies to certain oral contracts. Generally speaking, a statute of frauds requires that certain contracts be in writing and signed by the parties. This lesson explains what these statutes are, what these statutes require and why we have these statutes.
10. The Negotiating Process in Real Estate
In this lesson, we'll discuss how the negotiation process works in real estate. We will define the basics of offers, counteroffers, and delivery. The role of contingencies and earnest money is also central in the negotiations.
11. Legal & Equitable Title: Differences & Importance
Sometimes title to property is split into legal title and equitable title with different people holding each type of title over the same parcel of real estate. In this lesson, you'll learn about legal and equitable title and their differences.
12. What Is an Option Contract? - Example & Definition
The difference between a contract and an option contract is in the options that a buyer has a right to exercise in the contract, which makes the contract a bit more flexible.
13. Installment Sales: Definition, Tax Implications & Examples
This lesson will cover what an installment sale is, the tax implications of this type of transaction, and how to record it on taxes. We will also go over some examples of installment sales and why an installment sale can be risky for a business.
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Other chapters within the Indiana Real Estate Broker Exam Study Guide course
- Introduction to Real Property
- Public & Private Land-Use Control
- Estate Ownership, Rights & Interest
- Deeds & Property Transfers
- Property Titles
- Property Value & Appraisal
- Real Estate Agencies & Agency Relationships
- Listing Agreements & Property Management
- Fair Housing & Consumer Protection
- Risk Management in Real Estate
- Property Disclosures
- Introduction to Real Estate Financing
- Real Estate Lender Requirements
- Federal Real Estate Financing Regulations
- Closing & Settlement Real Estate Transactions
- Real Estate Investments
- Indiana Real Estate Commission & Licensing
- Indiana Real Estate Law
- Real Estate Business Procedures
- Indiana Real Estate Broker Exam Study Guide Flashcards