-forfeiture: defaulting party gives up something according to terms -termination: performance, infeasibility, mutual agreement, revocation, abandonment, lapse of time, invalidity of contract 5. Liquidated, punitive, or compensatory damages -Liquidated damages: due a damaged party as stated in contract -suit for damages: civil suit for money damages not covered in c -specific performance: suit to force party to fulfill contract promise 6. Statute of Frauds -documents must be kept for 4 years 7. Time is of the essence -As soon as possible D. Sales contract 1. Offer and counteroffer -must be in writing with exp date, counter means new amended terms, original offer becomes void 2. Earnest money and liquidated damages -liquidated damages: damages due a damaged party in contract 3. Equitable title -gives lienholder or buyer the right to acquire legal title to property 4. Contingencies -must be clear, have exp date, conditions must be met 5. Disputes and breach of contract -Failure to fulfill contract 6. Option contract and installment sales contract -Option is unilateral contract for buyer to decide on E. Types of agency and licensee-client relationships -Universal: represent in all matters, contract for principal -General: represent in business matters, can contract -Special: rep in single business transaction, broker relation F. Creation and termination of agency -Termination Reasons: fulfillment, expiration, mutual agreement, abandonment, renunciation, breach, bankruptcy, revocation of license. G. Licensee obligations to parties of a transaction -To Client: Skill, care and diligence. Loyalty placing client above customer. Obedience. Confidentiality. Full disclosure. Accounting. -To Customer: honesty and fair dealing, reasonable care and skill, proper disclosure. V. REAL ESTATE PRACTICE (SALES 18; BROKER 18) A. Responsibilities of broker 1. Practicing within scope of expertise -recommend specialized experts 2. Unauthorized practice of law - Insert only factual statements and business details applicable to the sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum , lease or other form has been promulgated by TREC for mandatory use. 3. Privacy and Do Not Contact B. Brokerage agreements between the broker and principal (seller, buyer, landlord, or tenant) 1. Seller representation – Types of listing agreements a. Exclusive right-to-sell and exclusive agency listing -Exclusive right to sell: given to one broker, written, exp date -Exclusive Agency: broker gets commission unless owner sells, must exp, oral or written b. Non-exclusive or open listing -oral or written, no stated exp, procuring cause gets commission c. Net listing (conflict of interest) -all sales proceeds above a seller’s minimum price go to the broker.
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- Fall '18
- a. real property, Estate Tax Liens