Law of Contracts (1200) PDF version

COURSE DESCRIPTION

In the real estate industry, agreements are made everyday. Whether a salesperson is promising to sell a property within a specified period of time, a buyer is placing an offer on a house or a buyer is trying to purchase a property, some type of contract will be involved.

Before entering into a legally binding agreement, real estate professionals should fully understand the different types of contracts that govern their industry. If a real estate professional makes a mistake while making a contract, he or she will be held liable for that mistake. Therefore, it is vital that real estate professionals protect themselves against errors, oversights and misunderstandings.

This course will introduce the student to contracts by identifying the components that create a valid contract as well as the different types of contracts that govern the real estate industry. However, in order to set the foundation for this course, we begin by discussing agency relationships. The law of agency governs the types of duties and obligations that an agent owes to his or her client as well as the duties and obligations the client owes to the agent. Agents must understand these types of relationships prior to entering into agreements that bind them to them. Once an understanding of the law of agency has been established, we will proceed to discuss the components of contracts, the importance of contracts, the laws that regulate contracts and the types of real estate contracts.

This course will discuss the five components of a legally enforceable contract; a contract must have legally competent parties, have consideration, have lawful objective, adhere to the statute of frauds and have mutual assent. Once the student understands what comprises a valid contract, we will identify the important laws and rules that govern contracts; these include: the statute of frauds, the doctrine of laches, the Texas Real Estate License Act, promissory estoppel, the parol evidence rule, promissory estoppel, the Uniform Commercial Code and the Deceptive Trade Practices Act.

From there, we will probe the different categories of contracts, such as implied, express, unilateral, bilateral, valid, unenforceable, void, voidable, executed and executory contracts. This will set the foundation for the next section of the course, which will cover real estate contracts. There are several different types of real estate contracts, but we will focus on: listing agreements, sale contracts, contract for deeds, option agreements, leases and TREC promulgated forms.

Lesson 6 and Lesson 7 will discuss two real estate contracts in further detail—listing agreements and leases. The listing agreement is the most important document that an agent has that identifies his or her contractual obligation to and relationship with his or her client; therefore, it is vital that the agent be able to differentiate between the various types of listing agreements. It is also important that the agent understand leases; his or her client will most likely obtain the agent’s services if he or she has questions or needs assistance with his or her contractual obligations to the landlord.

Lesson 8 identifies the consequences of a breached contract. A breach of contract occurs when one party does not fulfill or carry out the terms of the agreement as outlined by the contract. When this occurs, the agent should be able to identify not only the consequences, but the remedies as well.

Lesson 9 will introduce the student to real estate finance. One of the key elements of real estate transactions is the ability to obtain financing. For instance, most real estate contracts will have contingencies that stipulate that a contract can be rescinded if the financial aspects of the contract are not met. Therefore, the agent should be familiar with the different kinds of loans and financing available to his or her client.

Lesson 10 concludes the course by testing the student’s ability to apply his or her knowledge of Texas Contracts.


LEARNING OBJECTIVES

Upon completion of this module, the student will be able to:

  • Understand agency relationships
  • Understand the licensee’s role in real estate transactions
  • Be familiar with the process of working with buyers and sellers
  • Identify the differences between the various types of contracts
  • Know the three elements of a contract
  • Outline the five components of a legally enforceable contract
  • Apply the laws, doctrines and statutes that govern real estate contracts
  • Distinguish between the different types of real estate contracts
  • Recognize and complete the forms promulgated by TREC
  • Completely perform a contract
  • Recall the important elements of leases and listing agreements
  • Discern between valid, void, voidable and unenforceable contracts
  • Identify the various consequences for breaching a contract
  • List the remedies for breaching a contract
  • Recognize when rescission is acceptable
  • Understand the concepts of novation and assignment
  • Understand when contract breaches occur and the consequences and/or remedies for a breach of contract
  • Recognize the various contracts and forms that govern FHA and VA loans
  • Understand the requirements for a VA or FHA loan

Regulatory Requirement

Our staff works diligently to provide you with an analysis of current mandates and legislation that affects you the licensee. All information pertaining to the Mandatory Continuing Education requirements can be found on the State Requirements page. You can find the link to this page on the upper Navigation bar on the Course Catalog.


Course Completion

Any applicable completion certificates or affidavits can be printed after completing the course and final exam.


Testing

Quizzes - There is a quiz at the end of each lesson to test comprehension of the subject matter.

Final Exam - Passing Grade 70%. You can take the final three times.


About The Subject Matter Expert

This course is created and brought to you by 360Training, a leading provider of accredited e-learning courses to working professionals through today's leading schools, associations and corporations. 360Training's high quality e-learning courses assist thousands of working professionals each month in a wide range of disciplines to succeed in today's marketplace, renew licenses, acquire certification or prepare for a new profession.


Support

If you have any requests for technical support please contact the 360Training Support Department located in the HELP section of your account profile. Technical support inquiries are handled immediately.