4 Real Estate Transactions A real estate sale can include: Listing agreement Buyer’s representation agreement Financing instruments Escrow agreement Inspections Title insurance, and more

Elements of a valid contract Parties with legal capacity Offer made and accepted Lawful object Consideration In writing, if required by Statute of Frauds

Other contract facts Counteroffer rejects original offer Statute of limitations sets time for enforcement Contract can be discharged by Performance Rescission Release Novation Reformation Assignment Breach (but other party may sue for specific performance)

Requirements for Valid Deed Must be in writing and describe the parties and the property Grantor must be legally capable of executing the deed and there must be a granting clause Deed must be signed by grantor and delivered to and accepted by grantee

Types of Deeds Grant deed Quitclaim deed Warranty deed Bargain and sale deed Trust deed Reconveyance deed Sheriff’s deed Tax deed

Recording Acknowledgment of grantor’s signature entitles document to recording Recording of document serves as notice to the world of the transfer of title Recorded deed places grantee in the chain of title to the described property

Lease Agreements Lessor (landlord) is property owner Lessee (tenant) is party acquiring right of use of the property Fair housing laws protect tenant’s rights

Lease Agreements Commercial property may be subject to Gross lease Net lease Escalator clause Percentage lease