Explanation:
The danger associated with a swing loan is that the borrower or buyer may be required to make payments on three different real estate loans:
1) a mortgage on an older property that is still unoccupied;
2) a mortgage loan required to buy a new home
3) a swing loan required to transfer over the cash from the older, unoccupied home to be used as a down payment on a new home
Explanation:
Must be deposited no later than the end of the following working day after receipt. With the written consent of both the buyer and the seller or the lessee and the lessor, refrain from putting money into an escrow account by the deadline pending the seller's or lessor's acceptance of the offer if money from another party has been offered to the broker in the form of a check. After the offer has been accepted, the broker has one business day to put the funds into the escrow account.
Explanation:
It is known as an Earnest Money Deposit
Explanation:
When you hire a broker to assist you in purchasing a home, you enter into a buyer-broker agreement. You cannot employ a broker to find a home and then avoid them or sign with another broker once you have signed the agreement.
Explanation:
The Agreement of Sale shall be in writing pursuant to the "Statute of Fraud." Every agreement must be signed and put in writing.
Explanation:
A counteroffer serves as both a fresh offer that materially modifies the terms of the original offer and a rejection of an offer to enter into a contract. An acceptance of a counteroffer renders the initial offer wholly worthless because it acts as a rejection. As a result, the original offer cannot be accepted.
Explanation:
A person or legal entity that offers to be contractually obligated to carry out specific responsibilities is known as an offeror.
Explanation:
The agreement of sale is the most significant contract for the purchase of real estate. It is a legally binding agreement, and both parties are required to abide by its requirements.
Explanation:
An earnest money deposit is a sum of money paid by the buyer to the seller as a sign of good faith that the buyer intends to purchase the property. In the event that the buyer defaults on the agreement, the earnest money deposit may be forfeited by the seller as liquid damages for the breach of the contract. The amount of the earnest money deposit and the conditions under which it may be forfeited should be outlined in the agreement of sale. It is important for both parties to fully understand the terms of the agreement before signing it to avoid any misunderstandings or disputes later on.
Explanation:
The requirement that the seller give clear title using the form of deed specified in the contract in exchange for the indicated purchase price is one of the most crucial clauses. A legal description of the property must also be included in the contract.
Explanation:
In general, when an offer is made by the offeror, the offeree has the following options:
1. Accept the offer: If the offeree agrees to the terms of the offer, they can accept it, creating a legally binding agreement between the parties.
2. Reject the offer: If the offeree is not interested in the offer or does not agree with the terms, they can reject it outright, ending the negotiation.
3. Counteroffer: If the offeree is interested in the offer but wants to change some of the terms, they can make a counteroffer, which starts a new negotiation cycle between the parties.
4. Let the offer expire: Offers often come with a deadline, after which they expire. If the offeree does not respond before the deadline, the offer is no longer valid.
