This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller. All negotiations appeared to be going The Mailbox Rule is an area of Utah state law that declares the contract to be effective once the person accepting terms of said contract delivers it to a mailbox. The buyers stated in Addendum No. 2 that if they had not heard back from the seller by 12 a.m. that day, they would consider their counteroffer accepted. The seller was aware of the Mailbox Rule and delivered the accepted contract to a mailbox at 10:15 p.m.. The seller then experienced a phenomenon known as seller’s remorse, and left a voice message for Jon and Marsha at 12:30 a.m., thirty minutes past the proposed
Our decision was based on determining if there was contract formed and if the terms of said contract were performed by both parties. We found that Abigail placed an advertisement with the intent to lead readers to believe that she was selling “purebred toy breed puppies” for $100, “quoted for immediate acceptance”. Alex responded to Abigail’s advertisement and accepted her offer by submitting the required $100 payment to the P.O. Box, as stipulated in the advertisement, and inquired about when he could pick up
In the 1992 Syracuse Law Review, Robert L. Sweeny explicates some of the various terms that are necessary for real estate contracts to include. The author writes that it is essential in many real estate contracts for the property to either have no impediments or to provide insurance on these impediments in the form of an insurable title. The writer cites Stambovsky v. Ackley as a case that lacked this type of contact, which resulted in
The real estate industry is thriving with approximately sixty-eight percent of all Americans being homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and government funded educational opportunities (i.e. the Home Ownership Center of Greater Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there are some unethical lending practices that are threatening the housing industry as a whole.
This case begins with a couple that live in San Francisco, CA by the name of the Werner’s they obtained a 170,000 dollar loan on their house. The Werner’s had some friends another couple, the Suttons, one day the Werner’s proposed to the Sutton’s in regards to their house that if the Suttons’ were to put a $15,000 down payment toward the purchase price of their residence in which they were asking $185,000 for and pay the first five years of the mortgage and property taxes with the option to at any time purchase the residence. The Sutton’s agreed to this offer and both parties agreed on the terms orally. So in the beginning the Sutton’s paid the down payment and cash equal to the monthly mortgage during this time the Sutton’s had improvements
High economic growth and falling employment will result in a higher proportion of the population having higher incomes so demand for house purchases is likely to increase. Houses are normal goods with a high income elasticity of demand meaning that when incomes rise, the quantity demanded increases by a larger proportion than the change in income. Demand for house purchases is also likely to increase because people with higher incomes are likely to switch from renting to purchasing a house or may even invest in a second home.
For example, a realtor signed a contract with a couple to sell the couple apartment in two months. The realtor was able to sell the couple house in two months.
A Theory of Justice is the magnum opus of 20th century social contract theorist and political philosopher, John Rawls. A bit of background into this work is that social contract theory had fallen out of favor with political scientists and philosophers since the last 18th century, with the success of the American Revolution and the apparent triumph of John Locke and Democracy. However, with the advent of modern globalization, the emergence of America as a superpower, but the growing concern of socio-economic disparity necessitated a revisiting of the social contract, what it means, how societies and governments were best constructed.
Real estate transactions can be complex, making it difficult to navigate without legal assistance. A real estate attorney can walk a home buyer or seller through the legal process for the transfer of ownership of property. The fees for real estate lawyers can be a set price, like $800, or a rate per hour spent on the deal, depending on the area. Real estate attorneys are overseers of the legal work involved in buying or selling property. They are very beneficial in ensuring the interests and rights of the client are preserved. Moreover, a buyer's attorney checks the sales contract, or the legal document committing the buyer to purchase the home, to make sure the buyer is protected. The attorney checks the title, or chain of ownership to the property, for any problems or liabilities, such as liens. All mortgage loan documents and legal papers for the purchase are verified and filed by the attorney. A seller's attorney will check the sales contract to protect the seller and address any title issues that arise, arrange for any final payoffs for existing loans and prepare the necessary documents to transfer ownership of the property. More importantly, real estate attorneys can protect a buyer or seller from financial loss. A sales contract that does not have a clause allowing termination for a failed inspection can cost a buyer hundreds of dollars to cancel if the home is found to have a major problem, such as mold. Loan
...iven it to the seller’s agent, they have the right to come back with a counter offer to the agreement. On line 128 of the purchase agreement it says, “The offer to purchase is acceptable, provided the purchaser agrees to the following changes.” This is where the seller is able to make amendments to the buyers offer. After the seller has made the counter offer and the buyer has accepted, we prepare to close the transaction.
According to the Minnesota Court of Appeals (2005) the written offer is not evidence of a completed contract and therefore no contract existed.
As a result of our continued company’s growth, I am excited to see how we can expand our portfolio to invest in a company that would bring us a good rate of return. Our main business as you know is residential real estate, therefore, I propose investing in a strong commercial real estate company that would allow us to reap the benefits from the recent surge in the commercial market demand. My commercial real estate company of choice is CBRE Group, Inc. There US headquarters are located at 11150 Santa Monica Boulevard, Suite 1600, Los Angeles, California 90025. CBRE is one the largest commercial real estate service companies with an industry classification as real estate investment trusts. There fiscal year ends on December 31, 2013. The company is traded on the New York Stock Exchange under the symbol CBG.
S&L industry swelled, underwriting standards loosened, and uncertainty about the underlying value of real estate assets permeated (ring a bell?)
As Simister (2009, p. 3a-16) pointed out, the construction industry has a wide selection of standard forms of contract. To protect the client needs and fully address the project requirements, ATCO and Siemens formed a CCDC 5A - 2010 (a form of contract for construction management and services).
My wife and I wanted our own home. In order to purchase a home this time, we got a real estate agent. We found a house which was for sale by owner. The seller was also in the process of building a new home. His asking price was a little high but our agent was aware that he was trying to sell before he picked up two mortgages. The seller was very stern on his price and was not budging. Our agent, in turn, asked us to back off and just wait. The house had been for sale for a while so things were getting crucial for the
Occasionally there may be misunderstandings made by individuals/parties in differentiating between a simple contract and a speciality contract. From what is understood, a speciality contract may be; “illustrated by reference to gifts”, as stated by (Richards, 2009).