Tulsa Real Estate Agents | Contracts the Rock
We are still talking about real estate contracts and now we’re going to talk about and discharge the discharge of contract and what does a contract discharge? What does it mean? It just means when the agreement is terminated, a contract will terminate when it has been completely performed when all duties have been completed and nobody has breached and the contract or defaulted the performance of a contract. There is a term on the contract that says, time is of the essence. Tulsa real estate agents need to know what that term means gtar and o r e c just added that term to our contract, which is kind of changed everything. So it just means that the contract, the duties of the contract, must be performed within a specified time, and anybody who does not perform any obligation due to the time is that the essence they’re liable for breach of contract-and you definitely don’t want to be in breach of contract. Tulsa real estate agents need to go through some training on our new contract classes so that they are aware of what this really means and how it can affect. Each party who are involved-and there is a time reference date on the contract itself, and usually we will ask for anywhere from 10 to 15 days, starting on the date of the time of reference to perform inspections. If we ask for 10 days for performance of inspections, then that means we had 10 days to do any and all inspections, and during that inspection time, the buyer has the ability to ask the seller to repair anything. So what does not have to repair, but we have negotiation. Student during that time and if the both parties cannot agree on what is being active than one or both parties could walk away and discharge the contract. At that point as well so tulsa real estate agents need to be very aware of what that date is so that they’re in forming their clients to the best of their ability to do what needs to be done because time is of the essence. The word assignment you need to understand for test purposes. Just means that you’re transferring over your duties under the contract to somebody else, and it has to do with your your job and the duties that you perform. So you can actually assign your duties to another person and they would be obligated to complete those duties. The word novation will, let me go back to us just know. Tulsa real estate agents need to know that assignment means substitution, so you’re just a signing at your substituting the agent and then the word novation is going to mean new. It’s still substitution, but you’re substituting the contract instead of the parties. So you have a new contract with novation and you have new parties with assignment synovation. You would take an existing contract and replace it with a brand new one, and this could affect how business is done with your financial documents. So sometimes the buyer might present an offer to a seller and they might start out with an fha loan and during the process they substitute. The fha document, because they’ve decided to go with a conventional loan was pretty important. Conventional as an fha. Loans are completely different and they have different appraisal requirements. So it’s important for the seller to know that and when we do make these changes, we have to do an ovation of a new contract and redo the documents breach of contract. That just means that someone, whether it’s the seller or the buyer, has violated the terms of the contract and tulsa real estate agents need to understand what is considered a breach of contract and what can happen if somebody does breach the contract if the seller breaches a contract, the buyer directions to the seller. Term that you would need to know would be the suit for specific performance and they can sue the seller for specific things. They could sue them for money. They can sue the seller to require ask the judge to have the seller move forward to sell the house to them, even if the sellers choosing not to the buyer can sue for damages. So a suit for specific performance is just a remedy of the breach of contract and they can sue for liquidate liquid liquid damage, earnest money and force the seller to sell and other reasons for termination for discharging a contract would be if somebody just partially performed their duties. You can be terminated for that, so tulsa real estate agents need to know that also slept. Substantial performance could also be a cause for termination. The only time that the buyer really has the right to terminate a contract, that’s not considered a breach, is during their inspection. And. Also during the appraisal. I always say:there’s three parts of negotiation to a contract. Your initial offer as a negotiation, your investigation, inspection. Is, a negotiation and the appraisal process is also a negotiation. Tulsa. Real estate agents need to know that when the appraiser comes through, the appraiser can still require certain repairs to be made and the seller could come back and say well if I’m going to have to repair this I can’t pay for some of your closing costs. So there’s another negotiation. That can occur, and if both parties can agree to it, then the contract could be breached. I’ve been in those situations many times both parties have to mutually agree it throughout the entire negotiation process and the term also that tulsa real estate agents need to know is recession, and that just means that returned it just means that the parties are returning to the original positions before the contract. Everything goes back to, as it was before again. Contracts in real estate should always be in written form. We’ve got cells contracts, we’ve got different types of contracts will be like the residential.
There are specific contracts that you would write up for new construction and again, another term that should be known about is called equitable title. You need to know that an equitable title just means that you have interest and that your interest is protected on that title. So when a buyer makes an offer and both buyer and seller sign an offer and it becomes a contract. That means the buyer may not receive the title and immediately, but they have interest in that title. They have equitable title. At that point, whoever is holding the title, has the rights to the title but affordable title will give the buyer interest in that property one stop property closes, then the title is actually transferred over destruction of the premises and does not always automatically terminate the contract, but it just means the contract, then becomes avoidable and you would say well why would it not terminate will because, let’s say a tornado came through and did some damage? Is it completely destroyed? No, it’s halfway destroyed. Well, the tulsa real estate agents going to ask their client. Do you want to wait and move forward with this once the repairs are made, or do you want to cancel it now? Just remember:voidable means that you can move forward if you choose to, but you don’t have to sew-in and something with something you know the house burnt down. If I wanted to wait and let the house be rebuilt, I still have the option to purchase the home once it’s been rebuilt, contingency offers contingency offers and just mean that the seller will accept an offer on the contingency that the buyer has to sell their house. First and a different contingencies are common:it happens a lot. Normally, a seller would want to only accept a contingency offer if the buyers house is actually on the market. So when you have two options, you can change it to contingent or you can actually change it to pending the good times real estate agents going to know that it’s probably not in their sellers best interest to change it to pending. If it’s a contingency contingency gives the seller still the opportunity to market their home to other prospects, and they still have the ability to sell her house to someone else. If the right person came along