REED 315 Westmont College Requirements for a Valid Real Estate Contract Questions

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Business Finance

REED 315

Westmont College

REED

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Attached is Assignment 3 for Week 7. This Assignment 3 is a review of Chapters 6, 7 and 8, concepts of which we have already been discussing for the past few weeks. Please read the directions, as well as each question carefully and provide appropriate responses that fully respond to the questions as they are asked. For example, although the first 2 questions may sound like the same response, and while they may overlap, there are some remarkable differences. You will note that the questions are separated by the Chapter where the information will be for ease of completion. I wish you well on Assignment 3.

Prof. Green

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University of Baltimore Real Property Law/REED 315.WB1 Spring 2020 ASSIGNMENT 3 -Chapters 6, 7 and 8-Review (100 Points) DUE 3/16 (Chapters 6, 7 & 8-Hinkel, Practical Real Estate Law Textbook) Directions: Please read the following questions carefully and answer as fully as possible. There is no need to go to any resource other than your textbook and the discussion forums for the answers. I have given you each chapter from which to find the answer above each set of questions in which it corresponds. Chapter 6 (5 points each) 1. Please list the requirements for a contract in general, and explain each requirement. 2. Please list the requirements for a valid real estate contract, and explain each requirement. 3. Why is the contract of a mental incompetent unenforceable? 4. Explain the three (3) remedies available for the breach of a real estate contract. Chapter 7 (10 points each) 5. Describe the various methods of payment for real property. 6. What does “time is of the essence” mean in a real estate contract? Discuss fully. 7. Explain the difference between marketable title and insurable title. 8. What warranties are commonly required of a purchaser in a real estate contract? 9. What warranties are commonly required of a seller in a real estate contract? 10. What is a short sale? Chapter 8 (5 points each) 11. A general warranty deed contains which of the following covenants or warranties: a) Quiet enjoyment and warranty, seisin, against encumbrances, right to convey, title, transfer b) Right to convey, quiet enjoyment, seisin, transfer, title, against encumbrances c) Against encumbrances, seisin, right to convey, further assurance, quiet enjoyment, warranty 1 d) All of the above e) None of the above 12. Presumptions regarding delivery of a deed are: a) Possession of the deed by the grantor is a presumption of non-delivery b) Possession of the deed by the grantee is a presumption of delivery c) Recordation of a deed in the public records is presumption of delivery d) b & c only e) All of the above f) None of the above 13. The difference between a general warranty deed and a limited warranty deed includes: a) A general warranty deed is an absolute warranty regarding the property b) A general warranty deed is an absolute warranty regarding the property which includes warranties against what prior owners may have done c) A limited warranty deed warrants only against lawful claims of parties by, through, or under the grantor d) In a limited warranty deed, the grantor does not warrant against the actions of any prior owners e) b & c only f) All of the above g) None of the above 14. Which state’s law will control the legal requirements for a deed? 2
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Real Property Law 1

REAL PROPERTY LAW ASSIGNMENT 3

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Real Property Law 2
Response to Chapter Six Questions
Q.1. Contract Requirements
A contract works as a legal agreement that develops a sense of obligation to foster the
desired change according to the interest of the public and the preference of the property
owner. For example, property owners contract construction companies. Specific terms that
are particular to the preference of the owner and the other key stakeholders of interest.
Notably, the legal provisions on contracts vary among states.
The requirements that validate a contract include mutual consent, consideration, legal
purpose, and offer and acceptance. Mutual consent enables contracted deeds to take place
based on a shared agreement between two or more involved parties. Offer and acceptance
restrict a contract-based agreement within the bounds of a voluntarily involved initiative
(Hinkel, 2012). Consideration is the focus on influential factors amid the preparation and
agreement on a contract. The legal purpose is a sense of ensuring a contract agreement is
legal and enforceable due to its compliance with the law of the land and public policies.
Q2. Requirements for a Valid Real Estate Contract
Contract agreements in the real estate industry involve either brokers or salespersons.
According to the Texas State Law, a valid real estate contract must reflect the inclusion of
specific requirements that can validate such brokerage and sales contracts. First, contract
applicants must satisfy a benchmarked level of education and must pass a test by the Texas
Real Estate Commission (TREC) for licensing. Further, salespersons can only be allowed to
work under a TREC licensed real estate broker (Hinkel, 2012). Therefore, the TREC has the
mandate to adopt rules in favor of the public interest and adoption of a licensed contract form
as prepared by the Texas Real Estate Broker-Lawyer Committee (Hinkel, 2012). As a result,
the license holder is eligible for...


Anonymous
Excellent! Definitely coming back for more study materials.

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