AMP Real Estate Guide Questions to pass
Exams, all with 100% Correct Verified
Answers
Elements of a contract
Offer and acceptance
Consideration
Legally competent parties
Consent
Legal purpose
Void
It is missing an essential element and has no legal force and effect (i.e., the contract was
not signed by the person with the authority to perform)
Voidable
It may be rescinded by one or both parties. Contracts are voidable by the innocent party if
entered into under duress, under undue influence, through misrepresentation, through fraud,
with a minor, or with an incompetent person. A contract with a contingency that cannot be
met may be voidable.
Unenforceable
When neither party can sue the other to force performance, the contract is said to be
unenforceable. Because a real estate sales contract must be in writing, an oral agreement to
purchase property is unenforceable.
Executory contract
One or both parties have duties to perform. Example: The buyer must financially qualify and
the seller must produce a marketable title.
, Executed contract
All parties have fulfilled their duties and responsibilities. Becomes fully executed at
closing when the deed has been conveyed and the buyer has paid full price.
Specific performance
After a sales contract is created and contingencies are met, the sales contract is enforceable,
meaning that if the buyer or seller defaults, the other party can file a suit for specific
performance to enforce the terms of the contract.
Statute of frauds
Requires that certain instruments, such as deeds, real estate sales contracts, and certain leases,
be in writing in order to be legally enforceable.
Option contract
Optionor (seller) keeps open an offer to sell or lease real property in return for option money.
While the optionee (buyer) does not have to buy, the optionor must sell, should the buyer
exercise the option.
Lease option
The lessee (tenant) has the right to purchase the property under specified conditions or to
renew or extend the lease at its end.
Land contract
The vendor (seller) finances the property and retains the title to it until the final payment is
made or some other condition is met by the vendee (buyer). The buyer possesses the
property and retains equitable title. A land contract is also known as a contract for deed or an
installment contract.
Assignment
Transfer of rights and/or duties from one contract to another contract or from one person
to another person.
Exams, all with 100% Correct Verified
Answers
Elements of a contract
Offer and acceptance
Consideration
Legally competent parties
Consent
Legal purpose
Void
It is missing an essential element and has no legal force and effect (i.e., the contract was
not signed by the person with the authority to perform)
Voidable
It may be rescinded by one or both parties. Contracts are voidable by the innocent party if
entered into under duress, under undue influence, through misrepresentation, through fraud,
with a minor, or with an incompetent person. A contract with a contingency that cannot be
met may be voidable.
Unenforceable
When neither party can sue the other to force performance, the contract is said to be
unenforceable. Because a real estate sales contract must be in writing, an oral agreement to
purchase property is unenforceable.
Executory contract
One or both parties have duties to perform. Example: The buyer must financially qualify and
the seller must produce a marketable title.
, Executed contract
All parties have fulfilled their duties and responsibilities. Becomes fully executed at
closing when the deed has been conveyed and the buyer has paid full price.
Specific performance
After a sales contract is created and contingencies are met, the sales contract is enforceable,
meaning that if the buyer or seller defaults, the other party can file a suit for specific
performance to enforce the terms of the contract.
Statute of frauds
Requires that certain instruments, such as deeds, real estate sales contracts, and certain leases,
be in writing in order to be legally enforceable.
Option contract
Optionor (seller) keeps open an offer to sell or lease real property in return for option money.
While the optionee (buyer) does not have to buy, the optionor must sell, should the buyer
exercise the option.
Lease option
The lessee (tenant) has the right to purchase the property under specified conditions or to
renew or extend the lease at its end.
Land contract
The vendor (seller) finances the property and retains the title to it until the final payment is
made or some other condition is met by the vendee (buyer). The buyer possesses the
property and retains equitable title. A land contract is also known as a contract for deed or an
installment contract.
Assignment
Transfer of rights and/or duties from one contract to another contract or from one person
to another person.
