Which of the following is NOT a required element of a valid real estate contract?
Correct Answer
C) Notarization by a licensed notary public
The essential elements of a valid real estate contract are offer and acceptance (mutual assent), competent parties, consideration, lawful purpose, and in Idaho, compliance with the Statute of Frauds requiring the contract to be in writing and signed. Notarization is not required for a contract to be valid, though it may be required for recording certain documents such as deeds.
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Related Topics & Key Terms
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Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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