About This Chapter
Overview of Contracts in Real Estate Transactions - Chapter Summary
This chapter provides an overview of the different types of contracts in real estate transactions. It then delves into contract enforcement misrepresentation and the different types of contract breach. The chapter also talks about the real estate sales contract, including electronic signatures and paperless transactions in contract law. It then touches on the regulations of earnest money and what a promissory note is in real estate. After completing this chapter, you should be able to:
- Explain how the Statute of Frauds applies to real estate transactions
- Provide examples and methods of termination of an offer in contract law
- Explain the difference between contract addendum versus attachment
- Describe valid, void, voidable, and unenforceable contracts
- Define the types of listing agreements
- Compare contract assignments versus novation in real estate
- Explain the purpose and types of buyer representation agreements
- Give an overview of the negotiating process in real estate
Our chapters are taught through a series of short video lessons that are available 24/7. All video lessons contain a transcription for your convenience.
1. 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.
2. How the Statute of Frauds Applies to Real Estate Transactions
In real estate, you often don't have a deal unless it's in writing and signed. In this lesson, you'll learn about the statute of frauds and how it applies to real estate transactions.
3. Contract Enforcement: Misrepresentation & Fraud
A contract won't be enforced if it's based on fraud or misrepresentation. These are civil causes of action regarding the formation of a contract. Both of these causes of action involve a statement of facts that is untrue. This lesson explains fraud and misrepresentation in contract formation, and takes a look at a case example.
4. 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.
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. Contract Addendum vs. Attachment
Contracts contain multiple parts that can be confusing for any individual that is not well-versed in the subject. This lesson will define contract addendum and contract attachment, providing the reader with a comparison of the two.
7. 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.
8. Contract Law: Electronic Signatures & Paperless Transactions
You are always looking for ways to organize your work, make your paperwork less overwhelming, and make the buying or selling process easier for your client. Using electronic signatures and paperless forms offers many helpful benefits.
9. Listing Agreements: Definition & Types
People seeking to sell real estate through a real estate agent need to understand their listing agreement. In this lesson, you'll learn what a listing agreement is and the different types that may be used. A short quiz follows the lesson.
10. Contract Assignment vs. Novation in Real Estate
Contracts are at the center of real estate transactions. In this lesson, you'll learn about a contract assignment and a novation. We'll discuss the similarities and differences between the two and provide illustrative examples.
11. Buyer Representation Agreement: Definition, Purpose & Types
In this lesson, we'll discuss the types and characteristics of buyer representation agreements. By the end, you will better understand how the contract works and what it does for the buyer and real estate agent.
12. 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.
13. 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.
14. Earnest Money in Real Estate: Definition & Regulations
In this lesson, we discuss the definition of earnest money along with how it is paid and held until closing. The role of the salesperson or broker is explained. The lesson also covers when the earnest money is refundable or nonrefundable.
15. What is a Promissory Note in Real Estate? - Definition & Elements
Everyone that finances the purchase of real estate through a bank will have to make a promissory note. In this lesson, you'll learn what a promissory note is and the role it plays in real estate financing. A short quiz follows.
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Other chapters within the Illinois Real Estate Broker License Exam: Study Guide course
- Role of Agencies in Real Estate
- Principles of Practicing Real Estate
- Real Estate Ethics & Professional Responsibility
- Forms of Property Ownership
- Advanced Property Ownership Issues
- Real Estate Investment & Analysis
- Encumbrances in Real Estate
- Advanced Encumbrances in Real Estate
- Land Use Laws, Regulations & Zoning
- Real Estate Financing
- Obtaining a Real Estate Loan
- Real Estate Closing & Settlement Procedures
- Land Descriptions & Surveys
- Property Valuation & Appraisal
- Transfer of Real Property
- Advanced Transfer of Real Property
- Disclosures of Property Conditions
- Fair Housing & Consumer Protection
- Leases & Property Management
- Illinois Real Estate
- Illinois Real Estate Broker License Exam Flashcards