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Contracts2
Contracts
Question | Answer |
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Option Contract | A unilateral contract where one party has the option to buy property at a preset price within a negotiated time period |
Option Fee | An amount paid to secure an option contract-paid upfront, directly to the seller, and never refundable |
Bilateral Contract | An exchange of promises binding both parties |
Amendment | Modification to an existing agreement is made and signed |
Addendum | Additional material or supplemental information added to an agreement |
Contract for Deed | Seller financing with tie retenion to protect the seller-tittle is not transferred to the buyer until the full price is paid-also called land contract intstallment contract and real estate contract |
Novation | The substitution of a new contract for an existing one-the original agreement is terminated |
Assignment | Substitution of a new party into an existing agreement-can be used to shield the identity of a buyer who wishes to be anonymous |
Offer | A properly completed form with a price less than, equal to, or more the sellers asking price and signed by the buyer |
Counteroffer | A rejection of an offer and the presentation of a new offer |
Earnest money | A buyer's evidence of good faith, submitted with an offer to purchase |
Effcte Date of a Contract | The date on which the last party signed |
Fully Executed Contract | A contract that is signed and carried out-sales contract at closing |
Executory Contract | A contract that has been signed by the parties, but not yet carried out-sales contract before closing, or contract for deed |
Contingency | A condition in a contract that has not yet been met-financing, inspections, ect. |