Real Estate Contracts and Legal Concepts Quiz

Service agreements are not typically used in real estate transactions.

The doctrine of caveat emptor places the burden on the buyer to inspect the property for defects.

Eminent domain grants governments the authority to acquire private property for public purposes, compensating the owners.

Escrow involves a neutral third party holding funds and documents until all conditions of the sale are met.

A reverter clause specifies conditions under which ownership of the property reverts back to the original owner or their heirs.

The statute of frauds requires certain contracts, including real estate contracts, to be in writing to be enforceable.

Consideration is the value exchanged between parties, making the contract legally binding.

The doctrine of part performance allows enforcement of a contract if substantial steps have been taken towards fulfilling it.

Liquidated damages are pre-determined amounts agreed upon by parties to compensate for breach of contract.

Warranty deeds provide a guarantee of title, while quitclaim deeds offer no such guarantee.

Contingencies are conditions that, if not met, allow a party to withdraw from the contract without penalty.

Specific performance compels the breaching party to fulfill the terms of the contract as agreed upon.

While recording a real estate contract may be recommended, it's not a requirement for its validity.

Escape clauses provide a way for parties to exit the contract under specified conditions without facing penalties.

Time is of the essence means that adhering to specified deadlines is crucial and strictly enforced.

Adverse possession enables individuals to gain ownership of land by occupying and using it openly for a statutory period.

A lis pendens serves as public notice that a legal action affecting a property's title is underway.