acknowledgment addendum attorney fee provision choice-of-law provision consideration

Transcription

1 acknowledgment A formal declaration made before an authorized person, e.g., a notary public, by a person who has executed an instrument stating that the execution was his or her free act. In this state an acknowledgment is the statement by an officer such as a notary that the signatory to the instrument is the person represented to be. addendum An attachment to a contract, rental or lease agreement for incorporating any provision agreed to but not included in the boilerplate provisions of the agreement. [See RPI Form 250] attorney fee provision A provision in an agreement specifying the prevailing party to a dispute is to receive attorney fees if litigation results. [See RPI Form ] choice-of-law provision A provision specifying California law applies if a dispute arises with a tenant regarding the lease. [See RPI Form ] consideration Anything given or promised by a party to induce another to enter into a contract. It may be a benefit conferred upon one party or a detriment suffered by the other.

2 contract An agreement to do or not to do a certain thing. It must have four essential elements parties capable of contracting, consent of the parties, a lawful object, and consideration. A contract for sale of real property must also be in writing and signed by the party or parties to be charged with performance. counteroffer An alternative response to an offer received consisting of terms different from those of the offer rejected. [See RPI Form 180] credit application A document prepared by a prospective tenant which includes a provision authorizing the landlord to investigate and receive information on the tenant s creditworthiness. [See RPI Form 302] deed Written instrument which when properly executed and delivered conveys title to real property from one person (grantor) to another (grantee). escrow instructions Directives an escrow officer undertakes as given by an investor and a seller-in-foreclosure to coordinate a closing on a purchase agreement. [See RPI Form 401]

3 exclusive agency listing A listing agreement employing a broker as the sole agent for the seller of real property under the terms of which the broker is entitled to a commission if the property is sold through any other broker, but not if a sale is negotiated by the owner without the services of an agent. [See RPI Form 102] exclusive right-to-sell listing A listing agreement employing a broker to act as agent for the seller of real property under the terms of which the broker is entitled to a commission if the property is sold during the duration of the listing through another broker or by the owner without the services of an agent. forbearance agreement An agreement that the lender will temporarily reduce monthly mortgage payments for the homeowner at risk of default, without altering the original loan terms. graduated rent provision A rent provision in a nonresidential lease agreement which increases the initial monthly rent in pre-set increments over the term of the lease. [See RPI Form ] grant deed A document used to pass a fee simple interest in real estate from the grantor to another individual, unless a lesser interest is stated.

4 gross lease A nonresidential lease specifying that the tenant pays for their utilities and janitorial fees, but unless modified is not responsible for any other care, maintenance or carrying costs of the property. [See RPI Form 552 and 552-1] ground lease A leasehold interest in which rent is based on the rental value of the land, whether the parcel is vacant or improved. installment note A note calling for periodic payments of principal and interest, or interest only, until the principal is paid in full by amortization or a final balloon payment. instrument A written legal document; created to effect the rights of the parties, giving formal expression to a legal act or agreement for the purpose of creating, modifying or terminating a right. Real estate lenders basic instruments are promissory notes, deeds of trust, mortgages, installment sales contracts, leases, assignments. lease agreement The written document which sets the terms of a fixed-term tenancy. [See RPI Form 550 and ]

5 letter of intent A non-binding proposal signed and submitted to a property owner to start negotiations. [See RPI Form 185] liquidated damages A provision in a contract specifying the amount of damages one party will receive from the opposing party if the opposing party breaches the agreement. listing loan application An employment contract between principal and agent authorizing the agent to perform services for the principal involving the latter s property; listing contracts are entered into for the purpose of securing persons to buy, lease, or rent property. Employment of an agent by a prospective purchaser or lessee to locate property for purchase or lease may be considered a listing. The loan application is a source of information on which the lender bases a decision to make the loan; defines the terms of the loan contract, gives the name of the borrower, place of employment, salary, bank accounts, and credit references, and describes the real estate that is to be mortgaged. It also stipulates the amount of loan being applied for and repayment terms. [See RPI Form 202] net lease A nonresidential lease which transfers to the tenant the obligation, unless modified, to pay all of the costs of ownership in addition to utilities and janitorial services. [See RPI Form and 552-3]

6 note A document evidencing an obligation to pay money to a creditor usually a lender or carryback seller. offer to lease A document which sets forth all crucial elements typically negotiated to bring the landlord and tenant together in final leasing arrangements. [See RPI Form 556] open listing An employment entered into by a broker to render real estate services on a best-efforts basis under which a fee is due to the broker if they achieve the client s objective of the employment before the client or another broker separately first meet the objective, such as the sale or locating of a property. option listing A variation of the exclusive right-to-sell listing in which the seller grants the broker an option to buy the property at a predetermined price, if the property does not sell during the listing period. option to buy An agreement granting an irrevocable right to buy property within a specific time period. [See RPI Form 161]

7 option to extend An agreement granting a tenant the right to extend possession under the original lease agreement on terms set out in the option to extend. [See RPI Form 565] option to renew An agreement granting a tenant the right to continue in possession upon expiration of the existing lease under a new lease agreement on the same conditions as the expiring lease agreement on terms for payment of rent set out in the option to renew. [See RPI Form 565] promissory note A document given as evidence of an underlying debt owed by one person to another. purchase agreement The primary document used to negotiate a real estate sales transaction between a buyer and seller. [See RPI Form ] quitclaim deed A document used to convey whatever interest, if any, the grantor may hold in the real estate.

8 rescission The cancellation of a contract and restoration of the parties to the same position they held before the contract was entered into. Structural Pest Control Report A report disclosing any active infestations, damage from infestations or conditions which may lead to infestations. time-essence provision A purchase agreement provision establishing that dates for performance of any activity or occurrence of an event are to be strictly enforced as essential to the continuation of the transaction. title report A report which discloses condition of the title, made by a title company preliminary to issuance of title insurance policy. triple net lease A nonresidential lease which passes the responsibility for all costs and maintenance of the property to the tenant. [See RPI Form and 552-3]

9 Uniform Residential Loan Application A standardized mortgage application completed by the buyer with the assistance of the transaction agent and the mortgage lender s representative. [See RPI Form 202] use-maintenance provision A provision in a nonresidential lease agreement which establishes the landlord s and tenant s responsibility for the care and maintenance of the premises during the lease term. voidable contract That which is capable of being adjudged void, but is not void unless action is taken to make it so.