REE-3043 Chapter Notes - Chapter 13: Home Insurance, Freddie Mac, Liquidated Damages
31 Jan 2017
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Document Summary
Contract for sale: the most important document in real estate: determines. Any repairs or other conditions of the sale. Required elements of a contract: all contracts: No defects to mutual assent: contract for sale of real estate also includes. Legal vs. equitable title: buyer obtains equitable title when a contract for sale of real estate is fully signed, legal title. Recall: freehold estate is an interest in re having unlimited duration: equitable title. Advantages of standard form contracts: prepared by local real estate boards and bar associations, neutral between buyer and seller, ready-made treatment of details. Performance dates: adapted to locally important issues. Risks with standard form contracts: may treat some issues too lightly. Components of a standard form contract: part 1. Items to be negotiated (price, date of closing, etc. : part 2. Items that must be clear (the same for most transactions) Handling of funds: broker normally handles funds for a transaction, broker must place deposits in escrow.
