Under Michigan law, all of the following are required elements for a valid real estate purchase contract EXCEPT:
Correct Answer
D) Acknowledgment before a licensed Michigan notary public
Acknowledgment before a notary public is NOT required for a real estate purchase contract to be valid and enforceable in Michigan. While deeds, mortgages, and other instruments affecting title require notarization for recording purposes, a purchase agreement between buyer and seller does not require notarization to be binding. The four elements required for a valid contract in Michigan are: competent parties, offer and acceptance (mutual assent), consideration, and lawful purpose — plus the writing requirement under the Statute of Frauds for real estate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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