1 / 9

Chapter 6

Chapter 6. Contracts in Real Estate Transactions. Contracts. An exchange of promises between parties, conditioned on certain events and enforceable by law. Necessary Elements of a Contract Offer and acceptance Consideration Capacity of parties Lawful purpose

Anita
Download Presentation

Chapter 6

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 6 Contracts in Real Estate Transactions

  2. Contracts • An exchange of promises between parties, conditioned on certain events and enforceable by law. • Necessary Elements of a Contract • Offer and acceptance • Consideration • Capacity of parties • Lawful purpose • Writing requirement (Statute of Frauds)

  3. Contract Issues • Breach of Contract • One party does not fulfill contract • Specific Performance • If seller breach: • Sell property • Pay buyer fees • If buyer breach: • Earnest money

  4. Contract Contingencies • Specified conditions in a contract that relieve the parties of their promises to perform • financing contingency • title contingency • inspection and repair contingency

  5. Common Real Estate Contracts • Real Estate Sales Contract • Option-to-Buy Contract • Contract for Deed

  6. Real Estate Sales Contract • Bilateral – buyer & seller • See website for Standard Texas Contract

  7. Option-to-Buy Contract • Option fee • Property “held” for period • Seller must sell at agreed price if buyer decides to purchase • Common developer tool

  8. Contract for Deed • A.K.A. Installment Sales Contract • Stretches payments over time • Buyer has possession • Seller keeps title until paid in full • Recent Texas changes (2001) • 60-day cure • Buyer’s equity

  9. End Chapter 6

More Related