Contract

Definition of "Contract"

Agreement between two or more individuals whereby each party agrees to do or not to do some act. The parties have reciprocal obligations of performance or actions.

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Popular Real Estate Terms

Nonperformance

Failure or refusal to perform a specified action. The failure to fulfill contractually agreed upon terms or actions. Nonperformance creates a liabilit ...

Economic Indicators

Measures looking at the past , current an future direction of the economy. They may have an impact on the real estate market. Each month government bo ...

Predatory Lending

A variety of unsavory lender practices designed to take advantage of unwary borrowers. Predatory lending covers much the same ground as Mortgage Scam ...

Mechanic's Lien

Claim on property by an unpaid workman or contractor. The property may be sold to recover the money owed. The legal justification of the mechanic's li ...

Tax Reform Act Of 1984

Legislation that raised taxes on life insurers and further defined life insurance. Because the tax equity and financial responsibility act of 1982 and ...

Valued Policy Law

Legislation in a number of states requiring insurers to pay the face amount of a fire insurance policy in case of total loss to a dwelling (or sometim ...

Popular Real Estate FAQ

What Is An Annuity?

An annuity is a long-term, interest-paying contract offered through an insurance company or financial institution. An annuity can be \"deferred\" as a ...

What Is A Contingency?

A contingency is a provision included in a sales contract stating that certain events must occur or certain conditions must be met before the contract ...

What Is A Sales Contract?

A sales contract is the contract you draw up when you want to make an offer on a home. ...

If I Want To Buy A House And I Know The Property And The Seller Already Have An Agent, Can I Act As My Own Agent And Negotiate A Lower Fee?

You probably don't have the correct knowledge to represent yourself. The seller pays the real estate commission, not the buyer, and real estate commis ...

What Do I Need To Know About Managed Care Insurance: HMO, PPO, & And POS Plans?

An HMO provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium. A PPO differs from an HMO in ...