COURSE TITLE:
RELE 1211-271 LAW OF CONTRACTS
SEMESTER/YEAR:
FALL SEMESTER 2013
COURSE DATES:
1st 8 Weeks – Fast Track
INSTRUCTOR:
Al Sechrist
OFFICE LOCATION:
SPC Lubbock, ATC 3201 Avenue Q, Room 157
OFFICE HOURS:
Monday thru Thursday 1:00 – 2:00 PM and 3:30 – 5:30 PM
email ADDRESS:
asechrist@southplainscollege.edu
OFFICE PHONE:
716-4653
COURSE
DESCRIPTION:
COURSE GOALS:
This course covers elements of a contract, offer and acceptance,
statute of frauds, specific performance and remedies for breach,
unauthorized practice of law, commission rules relating to use of
adopted forms, and owner disclosure requirements.
The student will demonstrate a working knowledge of current Texas real
estate contract forms.
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GENERAL INFORMATION
I.
TEXTS AND OTHER MATERIALS
There is no textbook required for this course. Extensive use of hand-out materials
will be utilized. A financial calculator is needed.
A laptop computer for taking notes is allowed and recommended
II.
ATTENDANCE POLICY
Punctual and regular class attendance is required. Whenever absences become
excessive and, in the instructor's opinion, minimum course objectives cannot be
met due to absences, the student will be withdrawn from the course. No student
will receive credit for the course if he/she does not attend a minimum of two-thirds
of the total class time. When an unavoidable reason for a class absence arises,
the instructor may permit the student to make up work missed. In such case it is
the student's responsibility to complete work missed within a reasonable period of
time as determined by the instructor.
RELE 1211 Real Estate Contracts
III.
Syllabus
2
EXAMINATION POLICY
There will be four examinations, including a final examination; the two on contract
law will be composed of objective (multiple choice and true or false) questions.
(Other examinations will be in the form of a contract form to fill out). From time to
time pop quizzes may be given.
IV.
GRADING POLICY
The student's final grade will be derived as follows: Examinations 80%, Class
Participation 20%. Class participation grade will be based on attendance,
participation in discussions, and pop quizzes if any. Each absence, tardy, or
leaving at break will subtract from participation grade. Each examination including
the final will count equally toward the student's final grade. The students's final
letter grade will be determined by the following scale: 90-100 = A, 80-89 = B, 70-79
= C, 60-69 = D, and 59 and below = F.
V.
ASSIGNMENT POLICY
At each class meeting, you should have read and understand the materials that
have been handed out and be prepared to discuss this material.
VI.
COURSE OBJECTIVES
A.
B.
C.
D.
E.
F.
Successful students will understand the basics of real estate contract law
and will know the state laws which regulate and control the use of contracts
in the state of Texas.
Students shall realize the importance and workings of the Joint BrokerLawyer committee of the Texas Real Estate Commission.
By actively participating in this class a student will be able to in an
acceptable and professional manner, write a real estate contract which
would be accepted in a court of law.
Students who apply themselves will understand and be able to explain all of
the various promulgated contract forms which are used in Texas.
Students attending this class will have a basic understanding of the activities
which constitute the unauthorized practice of law, will be familiar with the
promulgated forms in Texas.
Students will learn which forms can be used in conjunction with which
promulgated addendum form.
CONTENT OUTLINE
I.
First eight classroom hours
A.
Course Introduction (C 1,2,3,5,6,9)(F 1,5,6,10,15)
Objectives: 1. Purpose and introduction
2. Course procedures and syllabus
2. Acquaint students with instructor and with each other
3. Goals for the course
4. General discussion about real estate contracts.
RELE 1211 Real Estate Contracts
Syllabus
3
B.
Introduction to Real Estate Law: Contracts (C 5,6)(F 1,5,10)
Objectives: 1. The purpose of the contract
2. The Statute of Frauds
3. Evidence of Intent
4. Contracts as roadmaps and checklists
C.
Types of Contracts (C 5,6)(F 1,5,10)
Objectives: 1. Contracts in general
2. Oral vs. written contracts
3. Express vs. implied contracts
4. Provisions of an express contract
5. Elaboration of legal property description
6. Description of personal property and fixtures
7. Bilateral vs. unilateral contracts
8. Contract for Deed
D.
The Legal Effects of Contracts (C 5,6)(F 1,5,10)
Objectives: 1. Valid, void, voidable, and unenforceable contracts
2. Forebearance
3. "Double Contracts"
4. Example of "Double Contracts"
E.
Essentials for Creation of a Valid Contract (C 5,6)(F 1,5,10)
Objectives: 1. Legally competent parties
2. Legal description of property
3. Mutual agreement
4. Lawful purpose
5. Consideration
6. Requirement for a written contract
F.
Rules for Construction of Contracts (C 5,6)(F 1,5,10)
Objectives: 1. Presumed validity of contracts
2. Interpretation against the maker
3. Reasonable time for performance
4. The four corners doctrine
5. The parol evidence rule
6. Precedence of contract modification
7. Interlineations
8. Effective date of contract
G.
Discharge of Contracts (C 5,6)(F 1,5,10)
Objectives: 1. Executed and executory contracts
2. Assignment and novation of a contract
3. Death of a party
4. Termination of contracts
RELE 1211 Real Estate Contracts
II.
Syllabus
4
H.
Breach of Contract (C 5,6)(F 1,5,10)
Objectives: 1. Breach of contract
2. Specific performance
3. Liquidated damages
4. Money damages
5. Equitable vs. legal remedies
6. Statue of Limitations
I.
Title Consideration (C 5,6)(F 1,5,10)
Objectives: 1. Legal title
2. Equitable title
3. Degree of equitable title
4. The doctrine of merger
J.
Unauthorized Practice of Law (C 5,6)(F 1,5,10)
Objectives: 1. Petitioning of the Texas Real Estate Commission
2. Adoption of the Statement of Principles
3. The Texas Real Estate Broker-Lawyer Joint Committee
4. Provisions for Immunity from Unauthorized practice of law
5. Rules of The Texas Real Estate Commission
Second and third eight classroom hours
A.
Review Contract Law and First Examination C 4,5,6,7)(F 1,2,5,10,12)
B.
Introduction to Texas Promulgated Contract Forms (C 5,6)(F 1,5,10)
Objectives: 1. Overview and background
2. Revision of the promulgated forms
C.
Promulgated Contract Forms (C 3,4,5,6,7,9,13,16)(F 1,2,3,4,5,6,7,8,9,10,13)
Objectives: 1. Parties
2. Property
3. Sales Price
4. Financing
5. Earnest Money
6. Title Policy and Survey
7. Property Condition
8. Brokers’ Fees
9. Closing
10. Possession
11. Special Provisions
12. Settlement and Other Expenses
13. Prorations
14. Casualty Loss
15. Default
16. Mediation
17. Attorney's Fees
18. Escrow
RELE 1211 Real Estate Contracts
Syllabus
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
IV.
5
Representations
Federal Tax Requirement
Notices
Agreement of Parties
Termination Option
Consult an Attorney
Signature Block
Seller’s Receipt
Broker Information and Ratification of Fee
Receipt
Fourth eight classroom hours
A.
Special Conditions Addenda (C 3,4,5,6,7,9,13,16)(F 1,2,3,4,5,6,7,8,9,10,13)
Objectives: 1.
Sale of Other Property by Buyer
2.
Second or "Back-up" Contract
3.
Release of Liability on Assumption of FHA, VA or Conventional
Loan - Restoration of Seller’s Entitlement for VA Guaranteed
Loan
4.
New Home Insulation Addendum
5.
Seller Financing Addendum
6.
Environmental Assessment, Threatened or Endangered
Species, and Wetlands
7.
Addendum for Abstract of Title
8.
Agreement fo Mediation
9.
Seller’s Disclosure of Property Condition
B.
Temporary Residential Leases (C 3,4,5,6,7,9,13,16)(F
1,2,3,4,5,6,7,8,9,10,13)
Objectives: 1. Overview
2. Use of forms
3. Parts and explanation of forms
C.
Hands-on Preparation of Contract Forms using promulgated contract forms
of the Texas Real Estate Commission. (C 3,4,5,6,7,9,13,16)(F
1,2,3,4,5,6,7,8,9,10,13)
D.
Course Wrap-up and Review for Final Examination
E.
FINAL EXAMINATION (C 4,6,7)(F 1,2,5,7,8,10,11,16)
SCANS COMPETENCIES
C-1
C-2
C-3
C-4
TIME-Selects goal relevant activities, ranks them, allocates time, and prepares and follows schedules.
MONEY-Uses or prepares budgets, makes forecasts, keeps records, and makes adjustments to meet objectives.
MATERIALS & FACILITIES-Acquires, stores, allocates, and uses materials or space efficiently.
HUMAN RESOURCES-Assesses skills and distributes work accordingly, evaluates performances and provides
RELE 1211 Real Estate Contracts
Syllabus
6
feedback.
INFORMATION-Acquires and Uses Information
C-5
Acquires and evaluates information
C-6
Organizes and maintains information.
C-7
Interprets and communicates information.
C-8
Uses computers to Process information.
INTERPERSONAL-Works With Others
C-9
Participates as members of a team and contributes to group effort.
C-10
Teaches others new skills.
C-11
Serves clients/customers-works to satisfy customer’s expectations.
C-12
Exercises leadership-communicates ideas to justify position, persuades and convinces others, responsibly challenges
existing procedures and policies.
C-13
Negotiates-Works toward agreements involving exchanges of resources resolves divergent interest.
C-14
Works with Diversity-Works well with men and women from diverse backgrounds.
SYSTEMS-Understands Complex Interrelationships
C-15
Understands Systems-Knows how social, organizational, and technological systems work and operates effectively
with them.
C-16
Monitors and Correct Performance-Distinguishes trends, predicts impacts on system operations, diagnoses systems
performance and corrects malfunctions.
C-17
improves or Designs Systems-Suggest modifications to existing systems and develops new or alternative systems to
improve performance.
TECHNOLOGY-Works with a variety of technologies
C-18
Selects Technology-Chooses procedures, tools, or equipment including computers and related technologies.
C-19
Applies Technology to Task-Understands overall intent and proper procedures for setup and operation of
equipment.
C-20
Maintains and Troubleshoots Equipment-prevents, identifies, or solves problems with equipment, including
computers and other technologies.
FOUNDATION SKILLS
F-1
F-2
F-3
F-4
F-5
F-6
F-7
F-8
F-9
F-10
F-11
F-12
F-13
F-14
F-15
F-16
F-17
BASIC SKILLS-Reads, writes, performs arithmetic and mathematical operations, listens and speaks
Reading-locates, understands, and interprets written information in prose and in documents such as manuals,
graphs, and schedules.
Writing-Communicates thoughts, ideas, information and messages in writing, and creates documents such as letters,
directions, manuals, reports, graphs, and flow charts.
Arithmetic-Performs basic computations, uses basic numerical concepts such as whole numbers, etc.
Mathematics-Approaches practical problems by choosing appropriately from a variety of mathematical techniques.
Listening-Receives, attends to, interprets, and responds to verbal messages and other cues.
Speaking-Organizes ideas and communicates orally.
THINKING SKILLS-Thinks creatively, makes decisions, solves problems, visualizes, and knows how to learn and reason
Creative Thinking-Generates new ideas.
Decision-Making-specifies goals and constraints, generates alternatives, considers risks, and evaluates and chooses
best alternative.
Problem Solving-Recognizes problems and devises and implements plan of action.
Seeing Things in the Mind’s Eye-Organizes and processes symbols, pictures, graphs, objects, and other information.
Knowing How to Learn-Uses efficient learning techniques to acquire and apply new knowledge and skills.
Reasoning-Discovers a rule or principle underlying the relationship between two or more objects and applies it when
solving a problem.
PERSONAL QUALITIES-Displays responsibility, self-esteem, sociability, self-management, integrity and honesty
Responsibility-Exerts a high level of effort and preservers toward goal attainment.
Self-Esteem-Believes in own self-worth and maintains a positive view of self.
Sociability-Demonstrates understanding, friendliness, adaptability, empathy, and politeness in group settings.
Self-Management-Assesses self accurately, sets personal goals, monitors progress, and exhibits self-control.
Integrity/Honesty-Chooses ethical courses of action.
RELE 1211 Real Estate Contracts
Syllabus
7
CAMPUS GUIDELINES
CHILDREN ON CAMPUS
Many of the students attending classes at South Plains College are also parents who value the
opportunity to participate in higher education. Sometimes students are faced with the decision of
whether to remain at home with their children, bring children with them to class, or be absent from
class. The following guidelines address concerns for the safety of children on campus and provide
for an environment conducive to learning:
1.
Students are not allowed to bring children to class and will be asked to leave in the interest of providing an
environment conducive for all students enrolled in the class. Students are responsible for adherence to the
attendance requirements set forth by the instructor in the course syllabus.
2.
Children may not be left unattended. In order to provide for the safety of children on
campus, parents or other guardians are responsible for supervising children while utilizing
services or conducting business on campus.
3.
Disruptive children will not be allowed to interfere with college business. Parents or
other guardians are responsible for supervising and controlling the behavior of children they
have brought on campus.
AMERICANS WITH DISABILITIES ACT STATEMENT
“Students with disabilities, including but not limited to physical, psychiatric or learning disabilities, who wish
to request accommodations in this class should notify the Special Services Office early in the semester so that
the appropriate arrangements may be made. In accordance with federal law, a student requesting
accommodations must provide acceptable documentation of his/her disability to the Coordinator of Special
Services. For more information, call or visit the Special Services Office in rooms 809 and 811, Reese Center
Building 8, 885-3048 ext. 4654.
DIVERSITY STATEMENT*
In this class, the teacher will establish and support an environment that values and nurtures
individual and group differences and encourages engagement and interaction. Understanding and
respecting multiple experiences and perspectives will serve to challenge and stimulate all of us to
learn about others, about the larger world, and about ourselves. By promoting diversity and
intellectual exchange, we will not only mirror society as it is, but also model society as it should and
can be.
(*Developed by the Title III summer 2001 participants as part of the training opportunity, May-June
2001, South Plains College).
GENERAL SAFETY ON CAMPUS
South Plains College recognizes the importance of safety on campus. The protection of persons and
property is a responsibility which we all share. Personal safety begins with the individual. The
RELE 1211 Real Estate Contracts
Syllabus
8
following guidelines are intended to assist you in protecting yourself and to encourage practices that
contribute to a safe environment for our campus community.
e
e
e
e
Never leave your personal property unsecured or unattended.
Look around and be aware of your surroundings when you enter and exit a building.
Whenever possible, avoid walking alone, particularly after dark. Walk to your
vehicle with other class members or request that the Security Guard walk you to your
car.
When approaching your vehicle, keep your keys in your hand; look under your car
and in the back seat and floorboard. Lock the doors as soon as you are inside your
car.
FOOD AND DRINK IN CLASSROOMS
It is the policy of South Plains College not to permit food or drink in the classrooms or laboratories.
In case of emergency, contact the following numbers but DO NOT leave a voice mail message:
894-9611, ext. 2338 - Levelland Campus 747-0576, ext. 4677 - ATC 885-3048, ext. 2923 - Reese
Center (mobile 893-5705)