In this week's installment of Ask An Agent, a reader asks a fairly common question th We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place.
Visit guides. Home Newsletter Advertise. When Is a Contract Really a Contract? Sign up to receive UrbanTurf by email:. Although a counteroffer is technically an offer, the term "offeror" is generally considered by the parties to refer to the purchaser of the property. To the point about a contract with vague and confusing terms being not a contract at all, the Regional Sales Contract is just such an animal.
This mishmash of a document-by-committee is a mess. In the first place, these 2 provisions should be combined as one, but more importantly the "date of ratification" filled in on the signature page is a critical contract term and should be initialed by both parties to indicate agreement.
This would of course require additional delivery by the last party to initial the date back to the party who entered the date so as to make the contract legally binding. So they were about to accept our offer when the other buyers claimed that bc the changes to the contract in the counter were "nonsubstantive," they essentially were under contract.
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Condo Fee Tutorial. What is a Rent Back? What is an Adjustable Rate Mortgage? The Splitting the Rent Formula. LAND — The surface of the earth extending down to the center and upward to the sky, including all natural things thereon such as trees, crops, or water; plus the minerals below the surface and the air rights above.
LAND CONTRACT — Another name for an installment purchase contract, by which the buyer obtains equitable title the right to use the property while the seller retains legal title recorded title as security for payment of the balance of the purchase price.
LAND LEASEBACK — A creative financing device often used with raw land which a developer wants to improve, in which the developer sells the land to an investor who leases the land back to the developer under a long-term net lease and subordinates his fee ownership to the lender providing development financing. LAND TRUST — An association organized by common owners of real property, which holds title to the real property in the name of one or more trustees for the benefit of the owners, whose beneficial interests may be represented by trust certificates.
The landlord retains a reversion interest in the property so that when the lease ends the property will revert to the landlord. LANDMARK — A stake, stream, cliff, monument or other object or feature which is used to fix or define land boundaries; also a prominent feature of a landscape or property that is the symbol for the place.
Subjacent support is that support which the surface of the earth receives from its underlying strata. LEASE — A lease is both a contract between lessor landlord and lessee tenant and a conveyance or demise of the premises by the lessor to the lessee. A lease is a contract in that item bodies the agreement between the parties. Constructive notice under the recording laws is also referred to as legal notice.
In residential leasing, the lessor is often referred to as a landlord. This classification includes an estate for years, periodic tenancy, estate at will, and estate at sufferance. LEVERAGE — The use of borrowed funds to purchase investment property with the anticipation that the property acquired will increase in return so that the investor will realize a profit not only on his own investment, but also on the borrowed funds; the employment of a smaller investment to generate a larger rate of return through borrowing.
A real estate licensee can be a salesperson or a broker, active or inactive, an individual, a corporation, or a partnership. LIEN — A charge or claim which one person lienor has upon the property of another lienee as security for a debt or obligation. Liens can be created by agreement of the parties mortgage or by operation of law tax liens.
LISTING — A written employment agreement between a property owner and a broker authorizing the broker to find a buyer or a tenant for a certain real property. If maintenance is deferred, the building will suffer a loss in value.
MALL — A landscaped public area set aside for pedestrian traffic. Marketable title need not, however, be perfect title. MARKET VALUE — The highest price, estimated in terms of money, which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which the property is adapted and for which it is capable of being used.
Normally, when real property is conveyed, the grantee receives all right and title to the land including everything above and below the surface, unless excepted by the grantor. MONEY — The cash deposit including initial and additional deposits paid by the prospective buyer of real property as evidence of his good faith intention to complete the transaction; called hand money or a binder in some states.
In the absence of rental agreement oral or written , a tenancy is deemed to be month-to-month, or in the case of boarders, week-to-week. In effect, the mortgage states that the lender can look to the property in the event the borrower defaults in payment of the note. MORTGAGEE — The one who receives and holds a mortgage as security for a debt; the lender; a lender or creditor who holds a mortgage as security for payment of an obligation.
MORTGAGOR — The one who gives a mortgage as security for a debt; the borrower; usually the landowner; the borrower or debtor who hypothecates or puts up his property as security for an obligation.
NET LEASE — A lease, usually commercial, whereby the lessee pays not only the rent for occupancy, but also pays maintenance and operating expenses such as tax, insurance, utilities and repairs.
NOTE — A document signed by the borrower of a loan, stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay.
The note is the evidence of the debt. When secured by a mortgage, it is called a mortgage note. NOTICE — 1 Legal notice is notice which is required to be made by law, or notice which is imparted by operation of law as a result of the possession of property or the recording of documents.
NOTICE TO QUIT — A written notice given by a landlord to his tenant, stating that the landlord intends to regain possession of the leased premises and that the tenant is required to quit and remove himself from the premises either at the end of the lease term or immediately if there is a breach of lease or if the tenancy is at will or by sufferance; sometimes refers to the notice given by the tenant to the landlord that he intends to give up possession on a stated day.
NOVATION — The substitution of a new obligation for an old one; substitution of new parties to an existing obligation, as where the parties to an agreement accept a new debtor in place of an old one. OFFER — A promise by one party to act or perform in a specified manner provided the other party will act or perform in the manner requested.
The first broker who secures a buyer ready, willing and able to purchase at the terms of the listing is the one who earns the commission. OPEN SPACE — Certain portion of the landscape which has not been built upon and which is sought either to be reserved in its natural state or used for agricultural or recreational purposes such as parks, squares, and the like. PARTY WALL — A wall which is located on or at a boundary line between two adjoining parcels and is used or is intended to be used by the owners of both properties in the construction or maintenance of improvements on their respective lots.
All conditions and terms of the tenancy are carried over from period to period, and continue for an uncertain time until proper notice of termination is given. PLAT — A map or a town, section, or subdivision indicating the location and boundaries of individual properties. PLOTTAGE — The merging or consolidating of adjacent lots into one larger lot, with the consequent result of improved usability and increased value; also called assemblage.
POINTS — A generic term for a percentage of the principal loan amount which the lender charges for making the loan; each point is equal to one percent of the loan amount.
The prepayment penalty is charged by the lender to recoup a portion of interest that he had planned to earn when he made the loan.
PRE-SALE — A pre-construction sale program by a condominium developer who is required to sell a certain percentage of units before a lender will commit to finance construction of the project. The present worth of a payment to be received at some time in the future is the amount of the payment less the loss of interest. NOT spelled principle. The will is presented to the probate court, and creditors and interested parties are notified to present their claims or to show cause why the provisions of the will should not be enforced by the court.
The prospect does not become a client until the parties establish a fiduciary relationship, such as upon signing a listing contract or upon executing a DROA. PUFFING — Exaggerated or superlative comments or opinions not made as representations of fact and thus not a grounds for misrepresentation. PUNCH LIST — A discrepancy list showing defects in construction which need some corrective work to bring the building up to standards set by the plans and specifications.
RANGE — A measurement, used in the government survey system, consisting of a strip of land six miles wide, running in a north-south direction. RAW LAND — Unimproved land; land in its unused natural state prior to the construction of improvements such as streets, lighting, sewers, and the like.
REALTOR — A registered word which may only be used by an active real estate broker who is a member of the state and local real estate board affiliated with the National Association of Realtors. RECEIVER — An independent party appointed by a court to impartially receive, preserve and manage property which is involved in litigation, pending final disposition of the matter before the court.
For example, if the contract specifies that acceptance must be made by email, an acceptance by telephone call or mail will not suffice.
Unilateral Contract vs. Bilateral Contract. In a unilateral contract, only one party to the contract makes a promise. What are the Basic Legal Requirements of a Real Estate Contract There are some basic requirements that must be present to make a real estate contract valid: Mutual Assent or a meeting of the minds is an essential element of an offer and an acceptance.
In Writing. For a real estate contract to be enforceable it must be in writing and must contain all the essential elements to be valid. For example, if a buyer makes an offer in writing and the seller accepts orally, then backs out, the buyer is out of luck. Identify the Parties. The contract must identify the parties. Although not legally required, a contract commonly sets forth full names and middle initials it helps the title company in preparation of the title commitment.
If one of the parties is a corporation, it should so state e. Property Description. The contract must identify the property being sold, including the street address and a legal description to clearly identify the property. Purchase Price. Legal Consideration. All parties to a contract must offer a consideration for the contract to be enforceable. Consideration is the benefit, interest or value that induces a promise; it is the glue that binds a contract. A contract must signed by all parties to be enforceable.
The party signing must be of legal age and sound mind. To find out what needs to be in your state or territories contract click here insert link As the real estate contract is a legally binding document it is important to consult a lawyer or a conveyancer to ensure your contract is drawn up correctly. LJ Hooker Conveyancing Services can help you.
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