Real Estate Contracts
Contract Law <ul><li>A contract must be: </li></ul><ul><ul><li>voluntary </li></ul></ul><ul><ul><li>an agreement or a prom...
<ul><li>In Alabama all contracts concerning real estate must be in writing. </li></ul><ul><li>A good example of an implied...
Essential Elements of a Valid Contract <ul><li>Offer and acceptance – there must be a  meeting of the minds  (mutual assen...
<ul><li>Reality of consent </li></ul><ul><ul><li>A mistake, misrepresentation, fraud, undue influence, or duress would res...
Validity of Contracts <ul><li>A contract can be valid, void (has no legal force), or voidable. </li></ul><ul><li>Unenforce...
Discharge of Contracts <ul><li>Performance </li></ul><ul><li>Assignment  </li></ul><ul><li>Novation </li></ul><ul><li>Brea...
Contracts Used in Real Estate <ul><li>Listing agreements </li></ul><ul><li>Real estate sales contracts </li></ul><ul><li>O...
Review of Real Estate Forms
Upcoming SlideShare
Loading in …5
×

Real Estate Contracts

488 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
488
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Real Estate Contracts

  1. 1. Real Estate Contracts
  2. 2. Contract Law <ul><li>A contract must be: </li></ul><ul><ul><li>voluntary </li></ul></ul><ul><ul><li>an agreement or a promise </li></ul></ul><ul><ul><li>made by legally competent parties </li></ul></ul><ul><ul><li>supported by legal consideration </li></ul></ul><ul><ul><li>about a legal act </li></ul></ul><ul><li>Contracts may be express or implied </li></ul><ul><ul><li>Express simply means that the parties state the terms and show their intentions in writing. </li></ul></ul>
  3. 3. <ul><li>In Alabama all contracts concerning real estate must be in writing. </li></ul><ul><li>A good example of an implied contract is what happens when you go into a restaurant and order a meal. </li></ul><ul><li>Unilateral vs. bilateral contracts. </li></ul><ul><li>Executed vs. executory contracts. </li></ul>
  4. 4. Essential Elements of a Valid Contract <ul><li>Offer and acceptance – there must be a meeting of the minds (mutual assent) </li></ul><ul><ul><li>What happens when there is a counter-offer? </li></ul></ul><ul><ul><li>An offeror may revoke the offer at any time before receiving the acceptance! </li></ul></ul><ul><li>Consideration – something of legal value. </li></ul><ul><ul><li>There must be a definite statement of consideration in a contract. </li></ul></ul>
  5. 5. <ul><li>Reality of consent </li></ul><ul><ul><li>A mistake, misrepresentation, fraud, undue influence, or duress would result in a contract that is voidable. </li></ul></ul><ul><li>Legal purpose </li></ul><ul><li>Legally competent parties </li></ul>
  6. 6. Validity of Contracts <ul><li>A contract can be valid, void (has no legal force), or voidable. </li></ul><ul><li>Unenforceable </li></ul><ul><ul><li>Doesn’t mean that both parties could not go ahead and fulfill the contract. </li></ul></ul>
  7. 7. Discharge of Contracts <ul><li>Performance </li></ul><ul><li>Assignment </li></ul><ul><li>Novation </li></ul><ul><li>Breach of contract </li></ul><ul><ul><li>One remedy is a suit for specific performance </li></ul></ul><ul><li>Other reasons for termination: </li></ul><ul><ul><li>Partial performance, substantial performance, impossibility of performance, mutual agreement, operation of law, recission. </li></ul></ul>
  8. 8. Contracts Used in Real Estate <ul><li>Listing agreements </li></ul><ul><li>Real estate sales contracts </li></ul><ul><li>Options </li></ul><ul><li>Land contracts or contracts for deed </li></ul><ul><li>Leases and escrow agreements </li></ul><ul><li>If a contract contains any ambiguity, the courts generally interpret the agreement against the party who prepared it. </li></ul>
  9. 9. Review of Real Estate Forms

×