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Aceable
| Question | Answer |
|---|---|
| Accession | The right to all that ones property produces, including that which is added, either naturally or by human action, to the property already owned. This often comes in play when dealing with crops. |
| Accretion | The process that results in the gradual increase in land through deposits of soil by natural forces |
| Erosion | The gradual loss of land over time. Happens when bodies of water wash away bordering land. |
| Reliction | The gradual increase inn land area when water gradually withdraws |
| Avulsion | The sudden loss of land by flood or when a stream or river changes course. Caused by water. |
| Plottage | The increase in value by successful assemblage |
| Assemblage | The act of combining parcels |
| Types of life estate | Conventional life estates, legal life estate |
| Conventional life estate | Life estate created through a grant from a property owner to another party |
| Types of conventional life estate | Ordinary, pur autre vie |
| Ordinary conventional life estate | A life estate in which the measuring life is that of the life tenant. Its created by a deed that lasts for the duration of the tenants life. |
| Pur autre vie | A life estate in which the measuring life is someone other than the tenant. life of the grantor or life of the person the tenant is taking care of. |
| Legal life estates | State law creates it to look out for a deceased persons survivors regarding real estate. |
| Types of legal life estates | Homestead, dower + curtesy, elective share |
| Homestead | A legal life estate that prevents a persons primary residence from being forcibly sold to pay certain kind of debts |
| Dower and curtesy | The right of a spouse to inherit a portion of the property held in their spouses name after the spouse dies. (not used much anymore) |
| Elective share | State laws that let a spouse make a claim to their deceased spouses property, despite what is in the will. |
| Types of freehold estates | Fee simple estate, life estate |
| Fee simple estate types | Defeasible, absolute |
| Fee simple defeasible types | Determinable, condition subsequent |
| Fee simple estate | Highest form of private ownership in real estate |
| Fee simple Defeasible | This ownership comes with a condition. If the condition is broken, ownership could end. The property may only be used as a public park. |
| Fee simple Absolute | Complete ownership with no conditions or restrictions on how long you own it Sarah buys a house in Raleigh. She owns it forever unless she sells it or gives it away. |
| Fee simple defeasible determinable | Automatically ends if a specific condition is violated. "I give this land to the church so long as it is used for religious purposes." |
| Fee simple defeasible condition subsequent | The owner keeps the property unless the original owner chooses to take it back after a condition is broken. "I give this land to the school, but if it is ever used for commercial purposes, I have the right to re-enter and reclaim it." |
| Concurrent ownership | ownership shared with another person |
| Common interest community ownership | which contains elements of both ownership in severalty and concurrent ownership |
| Ownership in trust | where a trust holds property for a person until they are ready to pass it on to their heir or beneficiary |
| The Four Unities | Possession, interest, time, title |
| Unity of Possession | each co-owner has an equal right to enjoy the possession and use of the whole of the property |
| Unity of Interest | each co-owner holds an equal share in the property. |
| Unity of Time | the requirement of co-owners to acquire their ownership or interests at the same time. |
| Unity of Title | requires co-owners to acquire their property from the same transaction |
| license | the revocable and temporary permission to use someone else’s property for a specific purpose. |
| Easement | generally requires legal action or a written agreement to use someone elses property |
| Easement appurtenant | Runs with the land; applies to neighboring properties |
| Easement in gross | Is attached to a person, but is not transferable |
| Floating Easement | An easement appurtenant that does not have clearly defined borders |
| Easement by necessity | Created when the dominant tenement could not be accessed otherwise |
| Conservation Easement | Preserves land from development |
| Easement by perscription | Granted after 20 years of open, notorious, hostile, and adverse use |
| Easement for light and air | A negative easement that prevents a neighbor from blocking your view |
| Easement by condemnation | Private property is taken for public use by eminent domain |
| Party wall | A shared wall that creates an easement for each neighbor for the other side of the wall |
| General lien examples | Judgment, personal property tax, state tax, federal tax |
| Specific lien examples | Mortgage, ad valorem, special assessment, mechanic, broker |
| Voluntary lien examples | Mortgage |
| Involuntary lien examples | Ad valorem, special assessment, mechanic, broker, judgement, personal property tax, state tax, federal tax |
| Tax rate | the percentage of the property's value that will be paid in tax |
| tax base | total taxable assets available in a specific area |
| the ad valorem (property) taxes a property owner owes are based on... | the area's tax rate and the property's assessed value. |
| North Carolina Machinery Act | all of the rules and regulations for listing, assessing, and taxing personal and real property in North Carolina. |
| The tax rate must be established no later than | July 1st |
| octennial reappraisal | Properties in North Carolina are reappraised (reassessed) every eight years. |
| horizontal reappraisal | when every property assessment in an area is raised or lowered the same percentage based on market changes instead of being individually reassessed. |
| Specific lien | attached to a specific parcel of property. |
| Involuntary lien | An involuntary lien is one that is created by law |
| Unrecorded lien | does not have to be recorded in the public records to be valid. |
| January 1 | lien is placed |
| January 31 | listing is due |
| September 1 | taxes are due |
| January 5 | the last day to pay the previous year's taxes without penalty |
| special assessment | when additional taxes are levied on the homeowners in a neighborhood or area to pay for public improvements that directly benefit the people living there. |
| How long after a special assessment roll is confirmed does a homeowner have to appeal the special assessment? | 10 days |
| Priority of liens | Property tax, special assessment, oldest to youngest |
| out-of-cycle reappraisal | unscheduled property value reassessment conducted outside a local government's normal or regular revaluation timeline |
| Methods of Describing Land | Metes and bounds, block and lot, government survey system |
| Metes | the distance measurements used in the description |
| Bounds | the course or directions used in creating the boundaries that enclose a parcel of real estate |
| metes and bounds | Distance and directions |
| block and lot system | type of legal description that identifies a piece of platted property by referring to the section, block, and lot numbers in a subdivision. |
| Plat | a drawing of a development used in the block and lot method |
| Parcel | a part or portion of land; often used to identify a specific lot within a larger tract of property |
| Lot | an individual piece of land measured and defined by the metes and bounds system |
| Block | a collection of lots |
| Tract | the totality of the property represented on a plat |
| government survey system | was developed by the federal government to improve, simplify, and standardize surveying. depends on a grid using the longitude and latitude system of mapping. |
| meridians | N-S |
| parallels | W-E |
| range lines | run parallel to the principal meridian, running north and south. 6 miles apart. |
| Township lines | run west and east, parallel to the baseline and, like range lines, are six miles apart from one another. |
| tiers | The areas of land that township lines create. 6 miles wide |
| Township lines intersect with range lines to create townships, which are how many square miles? | 36 square miles |
| Each square mile contains | 640 acres |
| Which of the following are examples of legal descriptions of property? | metes and bounds, lot and block, and the rectangular survey system |
| instrument of conveyance | a tool that transfers a grantor’s interest in real property to someone else. |
| deed | a legal, written document that transfers real estate title from one party to another |
| title | the bundle of legal ownership rights connected to a piece of property that the deed conveys. |
| alienation | The act of transferring title from one party to another |
| Voluntary alienation | by deed (sale or gift) |
| Involuntary alienation | by law (like foreclosure) |
| intestate | When a person dies without having left a valid will |
| testate | person prepared a will indicating how property will be disposed of after their death. |
| bequest | A gift of personal property |
| devise | To transfer real property by will |
| Adverse possession | the involuntary transfer of title from an owner who does not use or inspect their land for a number of years to another person who has some claim to the land and takes possession. |
| In North Carolina, the statutory possession time required is | seven years under a color of title claim and 20 years without. |
| Descent | If a person dies without a will but with known heirs, the state will determine the heirs using the laws of descent and distribution (also referred to as succession). |
| Escheat | If an individual dies without a will and has no surviving spouse, lineal descendants, or other known heirs, the decedent’s property passes to the state |
| Eminent domain | the right of the government to take private property for public use. THE RIGHT. |
| Condemnation | is the legal process of acquiring private property for public use through eminent domain. THE ACTION |
| Per the statute of frauds, all ___ MUST be in writing | deeds |
| For an instrument to qualify as a deed, it must: | competent, name grantee, words of conveyance, legal description, grantors signiture, properly delivered and accepted |
| Granting Clause | state the grantor's intention to convey the property. |
| Constructive notice | a property's ownership has been recorded publicly, so everyone can know the contents of recorded documents. |
| actual notice | direct or first-hand knowledge of the property's ownership but may not necessarily be contained in the public record. |
| Types of Deeds | General warranty deed Special warranty deed Bargain and sale deed Quitclaim deed |
| Covenants of Title in Deeds | right to convey, against encumbrances, quite enjoyment, warranty forever, further assistance |
| General Warranty Deeds | is a deed containing the strongest and broadest form of guarantee of title. the grantor promises to defend the title, no matter the claim against it. |
| Special Warranty Deeds | protects against defects that occurred while the grantor held title. |
| Bargain and Sale Deeds | deed without any covenants or warranties against encumbrances. It only indicates that the grantor has possession of the property and holds the right to convey title. |
| Quitclaim Deeds | a type of deed that conveys any interest, title, or right to a parcel of land the grantor might have at the time the deed is executed. However, the interests, title, and rights conveyed are uncertain, as the grantor makes no guarantees. |
| Types of Special Purpose Deeds | Correction deed Trustee's deed Sheriff's deed Deed of gift |
| Correction Deed | used to correct some kind of deed error (such as a misspelled name or an inaccurate description of a property). |
| Trustee's Deed | this deed is used by a trustee to convey property after a foreclosure auction or bankruptcy. |
| Sheriff's Deed | Used in a sheriff’s sale or auction when the owner's property is sold because of a court decision against them. |
| Deed of Gift | title is transferred with little or no consideration. |
| Excise Tax | the seller's (grantor's) responsibility to pay this tax. The tax amounts to $1 for every $500 of the property's sales price. |
| Title | It includes someone's ownership rights to a specific piece of real property. |
| Marketable Title | title that is free from significant encumbrances or defects (such as liens) that might otherwise prevent a purchaser from enjoying or eventually selling the property. |
| Title Examination | a thorough examination of available public records in the county to determine who has rights to the property and whether any defects exist in the chain of title |
| Chain of Title | the entire chronological record of a property’s ownership |
| North Carolina's Marketable Title Act | if a chain of title can be traced back for 30 years with no other claim arising during that 30-year period, then the title is marketable. |
| Action to Quiet Title | an action to quiet title clears the title record of any unrecorded claims. |
| Color of title | a title that might appear valid, but it is actually defective in some way. |
| constructive notice | presumes a diligent individual can search the public record to gain a sufficient understanding of the property, including those with present and past interests in that property. |
| Actual notice | he knowledge that you have obtained firsthand, either as a result of your own experience or communication you have received with your own ears or eyeballs |
| Torrens system | a recording system used in some states in which the state holds all records of land and title ownership, evidenced by a certificate of title |
| Title insurance | a policy that protects the insured (lenders, owners, etc.) from certain financial losses due to title issues, such as defects, encumbrances, and liens. |
| Standard Coverage | usually insures against title defects that would not be found in public records |
| Extended Coverage | provides protections that extend beyond what is insured under a standard coverage policy. |
| The Connor Act | a state law that requires all conveyances of real property to be recorded to be effective against claims by third parties. |
| Memorandum of Contract | a short version, or memo, of a contract that can be recorded instead of the complete contract |
| Types of public land use controls | PETE. Police power, Eminent domain, Taxation, Escheat |
| Police power | Government's right to regulate and restrict land use in order to protect the public. |
| Zoning | The division of land within a jurisdiction into separate districts within which uses are permitted, prohibited, or permitted with conditions. |
| Building codes | Sets of regulations pertaining to building design, materials, safety, sanitation, and structure |
| oil suitability test | a test to determine whether a property will support a septic system |
| straight-piping | when wastewater is released from a home directly into streams or onto land due to lack of access to a sewage system or septic tank |
| subdivision | the process of dividing up a big piece of land into small pieces of land. |
| Revocation Deadline | before midnight of the seventh day |
| Subdivision creation timeline | Identification, initial planning stage, city review, developer makes modifications, city approval, final planning stage, final municipal approval, purchasing the property, start up stage, disposal (sells) |
| Eminent domain | the power of government to seize private property for public use |
| Taxation | a charge on real estate that is used to pay for services provided by the government. done by local government. |
| Escheat | the legal doctrine by which a decedent’s (dead person's) property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs. |
| intestate | Dying without a will |
| Probate | a process by which courts determine and grant the appropriate ownership interest of an estate to creditors, taxing entities, and heirs of an owner who dies intestate |
| laws of descent and distribution | a set of laws that sets out the process of passing an estate to heirs when the owner dies intestate. |
| sprawl | low-density, monofunctional, car-dependent communities. It's also called suburbanization. |
| Wetlands | land areas where groundwater is at or near the surface of the ground. |
| This land-use control was passed as a law, and limits the acceptable uses within a certain boundary to residential properties only. | That is a zoning regulation. It was passed by local government, and creates zones of acceptable uses within a community. |
| This land-use control was also passed by the city. It requires that all electrical outlets located in kitchens, bathrooms, garages, and outside use GFCI outlets. | That was a building code. It specified what is required for a building to be safe. It addressed the inside of the building and how it is built, as opposed to the use of the property. |
| land use controls | zoning, subdivision regulations, building codes, regulation of special land types |
| describes how land can be parceled out, how dense they can be, and other issues | Subdivision regulation |
| deals with safety instead of urban planning | Building code |
| includes designated flood zones and wetlands | Regulation of special land types |
| What is the purpose of the Interstate Land Sales Full Disclosure Act? | protects consumers from fraud |
| planning commission | creating master plan for community, approving site plans, approving building permits, ruling on zoning issues |
| master plan | a written document created by the local planning board to guide the future growth and development of a community. |
| creating master plan | Focus, inventory, identify goals, develop plan, review plan, implement plan |
| creating zoning ordinances. | making zoning map, outlining permitted uses |
| What Does Zoning Regulate? | How land is used, min lot size, max building height, kinds of structures that are allowed, setback, density, parking spaces, air rights can be transferred, how natural resources can be used, how much land is set aside for public use, hisotic preservation |
| Zoning Affects mainly... | Density. number of people living in a square mile of space |
| Upzoning | changing an area's zoning to allow for more density |
| Downzoning | changing an area's zoning to restrict the density |
| Common Zoning Classifications | Residential, commercial, planned unit development, industrial, agricultural, institutional, open space, conservation land, recreational |
| as-of-right zoning | development that doesn't require approval from a community board, planning commission, or board of zoning appeals because it falls within the zoning standards for the area |
| Incentive zoning | when zoning ordinances are relaxed because a developer is building something deemed in the public interest. |
| Inclusionary zoning | a type of incentive zoning that offers density bonuses to developers for including affordable housing, senior housing, or multi-unit housing in a development. |
| Cluster zoning | another way that communities can create more affordable housing options by changing density. |
| floating zone | a flexible zone that is used to encourage a certain, desirable kind of development. |
| Overlay Districts | can modify the use of the original zone |
| historic preservation zoning | might prevent certain kinds of development in historic districts or require property owners in those districts to use certain materials or historically appropriate styles for updates to their homes. |
| aesthetic zoning | to require that new buildings conform to specific types of architecture or appearance. |
| Buffer zones | areas that separate two different zones to give each one a little breathing room |
| zoning boards of adjustment | created to hear complaints about the effects of zoning ordinances on specific parcels of property. |
| nonconforming use | happens when a property was operating within zoning law, but then the law changed in a way that prohibits the established use |
| illegal nonconforming use | an activity or structure that violates current zoning laws and was never lawful when it first started. |
| legal nonconforming use | is "grandfathered" because the law changed after the use began legally |
| special use permit | allows specific kinds of uses in a zone that aren't the main use of that zone, as long as the property owner meets certain requirements |
| special use permit example | a church in a residentially zoned area or a restaurant for workers in an industrially zoned area would need a special exception. |
| Spot zoning | rezoning a small parcel of land for a use classification totally different from that of the surrounding area for the benefit of the owner of that property and to the detriment of other property owners. |
| when do you disclose dual agency? | As soon as a relationship begins to morph into dual agency, disclose it even if advance consent was previously given. |
| when WWREA disclosure is used | At first substantial contact, before any confidential information |
| the agent must mail or electronically send the WWREA Disclosure form to the client and review it with them no later than ____ days | 3 days |
| A copy of the signed WWREA form is required to be kept for | 3 years |
| a fiduciary puts the ___ interest first | clients |
| The list of specific fiduciary duties an agent owes a principal | OLDCAR |
| Fiduciary Duties: Obedience | clients are the decision-makers in a real estate transaction — not the agents. |
| Fiduciary Duties: Loyalty | the agent's job is to represent the principal's best interests — even beyond their own! |
| To whom is full disclosure owed as a fiduciary duty? | only clients |
| Duties to Customers and Third Parties | Disclosure of material facts Honesty and fairness |
| Mineral and Oil and Gas Rights (MOG) Disclosure | the property's oil, mineral, and gas rights, and whether the current owner or a previous owner has severed those rights. |
| Misrepresentation | a statement, written or spoken, that is false or misleading. |
| omission | occurs when an agent should disclose a material fact, but does not. |
| Puffing | an agent makes statements of opinion about a property. |
| Unfair or Deceptive Trade Practices Act | Providing an untruthful opinion or false incentive to persuade a consumer, Not disclosing a material fact, Engaging in false advertising (remember that fine line between puffing and misrepresenting facts) Making misrepresentations |
| Latent Defects | any structural defects that cannot be detected by ordinary inspection. |
| patent defects | easily discoverable upon inspection. |
| Megan’s Law | equires authorities to make information available to the public regarding registered sex offenders. |
| caveat emptor | the concept that the buyer is expected to do their due diligence when purchasing a property. |
| fraud | wrongful or criminal deception intended to result in financial or personal gain. |
| Conversion | to use trust funds for a purpose other than the purpose for which they are held. |
| Fair Housing Act | it is unlawful to refuse to sell, rent to, or negotiate with any person because of that person's inclusion in a protected class. |
| What are the two main categories of disclosure? | agency disclosure and the disclosure of material facts |
| Listing Contract | A seller employs a broker to sell a property they own. |
| Buyer Agency Contract | A buyer employs a broker to represent them in the purchase of a property. |
| Contract to Procure Tenant | A property owner enlists a broker to find a tenant for their rental property. |
| Per North Carolina Real Estate Commission Rule 21 58A.0104(a), agency contracts must: | Be in writing, have expiration date, contain anti-discriminatory language, be signed by all parties, include license number |
| A commission is always negotiable between _____ | The broker and client |
| retainer fee | specified fee paid by the buyer after entering into an oral or written buyer agency contract. |
| success fee | specified amount in the buyer agency contract that the buyer's broker will earn upon the closing of the transaction. |
| Unrepresented Seller Disclosure and Fee Agreement | the buyer's broker should have the owner/seller of an FSBO sign to get commission if their client buys an FSBO property |
| net listing | an agreement in which the seller names an amount they will accept for a property and if the sales price exceeds that amount, the broker receives the excess as commission. |
| protection period | a limited time frame after an agency agreement ends where an agent can be owed compensation if certain situations occur. |
| independent contractor | works according to their own methods and is responsible to their employer only as to the results of that work. |
| Safe Harbor | a place of refuge for those industries Congress felt were victims of an overly aggressive IRS practice of attempting to reclassify independent contractors as employees |
| Brokers always receive their commission from | BIC |
| open listing | The individual who is considered to have procured the cause of the sale is the one who will receive the commission. If the property owner finds their own buyer, no commission is owed. |
| exclusive agency listing | the seller agrees to list the property with only one broker during a specified listing term. The listing broker is owed commission unless the owner procures their own buyer |
| Exclusive right to sell | states that as long as the property is sold within the stipulated time frame of the contract, the listing brokerage firm named in the contract will receive a commission. |
| open listing | The individual who is considered to have procured the cause of the sale is the one who will receive the commission. If the property owner finds their own buyer, no commission is owed. |
| exclusive agency listing | the seller agrees to list the property with only one broker during a specified listing term. The listing broker is owed commission unless the owner procures their own buyer |
| Exclusive right to sell | states that as long as the property is sold within the stipulated time frame of the contract, the listing brokerage firm named in the contract will receive a commission. |
| he listing price must be determined before.... | the seller signs the listing contract. |
| protection period | a limited time frame after an employment agreement ends during which an agent can be owed compensation under certain circumstances |
| Antitrust laws | legislation aimed at promoting competition and preventing unfair trade practices and monopolies. |
| Collusion | an unlawful agreement between competitors to monopolize a market, disadvantage other competitors, or otherwise undertake activities in violation of fair trade laws. |
| Sherman Antitrust Act | protects consumers and businesses by creating healthy competition while keeping prices low and quality high. |
| Price fixing | any effort made by competitors to jointly establish a fixed rate, price, or commission. |
| boycott | an agreement between two or more competitors to NOT do business with another competitor for the purpose of inducing the other competitor to change its business practices or fail altogether. |
| tie-in agreement | a conditional agreement stipulating that a product or service desired by a party will be offered ONLY on the condition that the party also agrees to purchase a second product or service. |
| market allocations | any discussion of real estate territory or establishing a brokerages "area" |
| tortious interference | the wrongful interference in a business relationship. |
| f a customer does not want you to call them and registers themselves with the Do Not Call Registry, your brokerage MUST remove their name from the brokerage call list within.... | 31 days |
| The TCPA applies to: | autodialers and fax machines |
| The Do Not Call registry is regulated by: | The Federal Trade Commission (FTC) The Federal Communications Commission (FCC) |
| telemarketers must: | honor do not call registry, remove numbers from all lists within 31 days, only make calls between 8am-9pm |
| telemarketing ads must include | name, who the call is made from, contact info |
| Seller's Documents | Seller's deed Survey Restrictive covenants Homeowner's association information (including dues and assessments) Balance due on your existing mortgage(s) and status of mortgage(s) |
| marketing plan | a plan created to secure the other party needed to carry out a real estate transaction that includes sales and advertising. |
| Equity | the difference between what the homeowner owes and what the home is worth. |
| net to seller | After the seller gets paid and makes all their payments, the amount left |
| Listing price | the price the seller is asking for, what they hope the property will sell for. It could sell for more or less than this amount |
| Purchase price | amount that the seller bought the house for originally. |
| Sale price | the amount the seller hopes to sell the home for. |
| Gross profit | the profit that remains after deducting the purchase price from the sales price |
| Adjusted cost | purchase price plus the closing costs and brokerage fee. |
| Adjusted sale price | sale price minus the closing expenses and brokerage fee. |
| Net profit | the net profit is the adjusted sale price minus the adjusted cost. |
| The formula for gross profit | Sale price - Purchase price = Gross profit |
| To express gross profit as a percentage: | Gross profit ÷ Purchase price = Gross profit as a percentage |
| Forbearance | a promise to not do something. |
| Consideration | something of value exchanged by the parties as evidence of agreement to the terms of a contract |
| mutual assent | the fully agreed-upon exchange of promises by the parties. |
| offer | a proposition made by an offeror to an offeree to agree to the terms of a binding contract. |
| Fraud | he wrongful or criminal deception intended to result in financial or personal gain. |
| mistake of law | requires that there be a misunderstanding of all parties regarding the understanding or awareness of applicable law. |
| Duress | the unlawful effort, such as threats of physical violence or other pressure, to coerce a party to perform an act |
| Undue influence | someone is able to persuade another's decisions due to the relationship between the two parties. |
| Valid Contracts | possess all of the essential elements necessary to be legally binding and obligate performance |
| Void Contracts | couldn't be completed even if the parties wanted to. |
| Voidable Contracts | at least one party has the option to rescind or terminate the contract without penalty. |
| Statute of Limitations | state and federal laws establishing time limits for bringing certain kinds of legal actions |
| Doctrine of Laches | another legal principle that courts use to deny dated claims. |
| reality of consent | an agreement is made with voluntary act of good faith, meaning there is no evidence of fraud, misrepresentation, mutual mistake, or misunderstanding, undue influence or duress, this is called |
| lawful objective | speaks to the idea that a contract cannot require any illegal activities or outcomes. |
| Implied contract | a contract created by the actions of the parties rather than by express agreement |
| Express contracts | oral and written contracts in which the parties explicitly state or express their intentions and their expectations regarding the contract and the exchange of promises. |
| bilateral contract | an agreement in which both parties make a promise to perform the actions specified in the contract. |
| unilateral contract | one party (the offeror) makes a promise in exchange for a reciprocal act on the part of the second party (the offeree). |
| executory contract | a contract that has not yet been fully performed. |
| If an auction is held ______, the seller has the right to stop the bidding for any reason, especially if they think the highest bid will be too low. | with reserve |
| Auctions held ______ mean the seller is agreeing to accept the highest bid no matter what. In North Carolina, this is called an absolute auction. | without reserve |
| The discharge of contracts can be classified into two main categories: | Operation of law Agreement of the parties |
| operation of law | it means that they are discharged as a result of the application of the law without regard to the desires of the parties — as opposed to agreements of the parties, which DO reflect the intent of at least one of the parties to the contract. |
| Statute of Limitations | In the event a party to a contract defaults in their performance, the wronged party must bring a lawsuit against the defaulting party within the time frame as set forth by the statute of limitation |
| In what type of contract can a party potentially be exempted due to death or incapacity from their contractual obligations? | personal services contracts |
| Impossibility of Performance | happens when a party is not able to complete a contract because of an event that happens after the contract is executed. |
| Novation | replace an existing contract with a new one |
| Specific Performance | a court order that requires a party to finish their promise under a contract instead of just paying money |
| Rescission | it attempts to put the parties back in a position as though the contract never existed. It is an annulment of the contract |
| Liquidated Damages | a contract stipulates what damages are to be paid in the event of a breach of contract. |
| Punitive Damages | awarded in unusual cases where the defendant's behavior is viewed as intentional and particularly harmful |
| contingency | a provision within a contract that makes performance conditional upon the occurrence of a stated event. |
| Addenda | an addition to a completed contract that specifies supplementary information to the contract that was not previously included in the contract. |
| Modifications to a contract can occur: | at anytime between contract date and closing |
| Special assessments approved prior to settlement are paid for by the | the seller |
| Special assessments approved after settlement are paid for by the | the buyer |
| Buyers using the Offer to Purchase and Contract will receive what kind of deed? | general warranty deed |
| Additional Provisions Addendum (2A11-T) | an optional, standard North Carolina real estate form used to modify and add binding terms to the standard Offer to Purchase and Contract (Form 2-T). |
| Back-Up Contract Addendum (2A1-T) | used when you have a buyer willing to be the backup buyer in case the first buyer falls through. |
| short sale | when a homeowner sells a property for less money than they still owe on their mortgage |
| After a contract has been executed, how many days does the broker have to get a copy to all parties? | immediatley, no later than 3 calandar days |
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