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Ch 3: Real Estate Contracts

About This Chapter

Study real estate contracts with these fun and engaging lessons. This effective study resource will help you review the purposes and characteristics of several types of real estate contracts, such as sales, transaction and option contracts.

Real Estate Contracts - Chapter Summary

This real estate chapter summarizes the purposes, features and qualities of several types of real estate contracts. These comprehensive lessons succinctly outline many real estate agreements, including listing, buyer representation and employment agreements. You'll also summarize the negotiating process for real estate purchases. Upon completion of this chapter, you should be able to:

  • Differentiate between the types of real estate transaction contracts
  • Recognize the characteristics of the real estate sales contract
  • Compare types of listing agreements
  • Understand the purpose of a buyer representation agreement
  • Comprehend examples of option contracts
  • Explain contract offer laws
  • Summarize methods to terminate an offer in contract law
  • Define partial, material and total contract breaches
  • Outline the real estate negotiating process
  • Assess earnest money regulations
  • Analyze contractual liability of an agent and the authority of a principal
  • Discuss the purpose of employment agreements with brokers

Taught by expert real estate instructors, these video and text lessons break down essential real estate definitions and concepts so you can quickly review and commit them to memory. You can reinforce what you study by taking the self-assessment quizzes that follow each lesson. Printable lesson transcripts are also included to solidify your understanding of the chapter's material. You can access these lessons wherever and whenever it's convenient by using your desktop, laptop, smartphone or tablet.

13 Lessons in Chapter 3: Real Estate Contracts
Test your knowledge with a 30-question chapter practice test
Types of Contracts in Real Estate Transactions

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.

Real Estate Sales Contract: Definition & Characteristics

2. 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.

Listing Agreements: Definition & Types

3. 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.

Buyer Representation Agreement: Definition, Purpose & Types

4. 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.

What Is an Option Contract? - Example & Definition

5. 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.

What Is an Offer in Contract Law?

6. What Is an Offer in Contract Law?

In contract law, an offer is a promise in exchange for performance by another party. An offer can be revoked or terminated under certain conditions. There are also times when an offer can be negotiated to create a counter-offer.

Termination of an Offer in Contract Law: Methods & Examples

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.

Types of Contract Breach: Partial, Material, & Total

8. 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.

The Negotiating Process in Real Estate

9. 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.

Earnest Money in Real Estate: Definition & Regulations

10. 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.

Contractual Liability & Authority of a Principal

11. Contractual Liability & Authority of a Principal

Many business transactions are conducted through the use of agency relationships. This means an agent conducts business on behalf of a principal. This lesson discusses the liability of a principal for contracts made by an agent.

Contractual Liability of an Agent

12. Contractual Liability of an Agent

An agent with authority normally can't be held personally liable for a contract made on behalf of a principal. This lesson explains those special circumstances when an agent may be held liable for a contract.

Employment Agreements Involving Brokers

13. Employment Agreements Involving Brokers

In this lesson, we will learn about the employment agreement between brokers and their associate-licensees, the importance, purpose and important elements of the agreement, and the rules regarding supervision.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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