eSignature Sublet Agreement Template Made Easy

E signature sublet agreement template

hello everybody welcome to class again I got Kristen and Pam here with me Pam's from Virginia Kristen you're from Texas right correct I remember you guys from last time so this is great you guys are here because we could follow up on a lot of concepts that we did last time in our last sessions you're going to see a lot of them connected so just to quickly review a few things um we're here to learn about real estate passed the exam is what we want to do right yay passed the exam yeah yeah hey okay and just to review as well from our last class for people who are watching this on video this should be a key part of your studying plan anybody says just do one thing all you need to do is come to class all I need to do is watch my videos all you need to do is to practice questions or the flashcards is a liar do not rely one thing so that you could make money and start selling real estate the specifics and the details really should be nailed out and you do those practice questions but by sitting here through this webinar you will get a better idea of the bigger picture because if you're just doing the practice questions sometimes it's hard to fit them in and it makes it almost more confusing as it doesn't really make sense but if you have a good foundation then everything kind of falls into place very nicely our rules from yet last time use the mute button appropriately you guys know if there's kids or family or dogs behind you sneak it up we'll pause for questions and stay on focusing on past exam and remember I'm not a lawyer okay you guys ready yeah overlaps thing I forgot and if you like what we do don't forget to say side nice on my LinkedIn profile LinkedIn comm slash Joe judor okay so what we wanted to do today was contracts and government powers but when I was looking today at preparing this lesson I realize there's a good amount we could go over with contracts so we may not get to government power but if that's really important to you I'm happy to review it but I really wanted to stay focus on contracts today because that's a central part of real estate and a huge part of your exam so let's start with this do you guys know the four centrioles of a valid contract all right so the first one we got here you guys read it for me about capable your parties like right here yeah evil parties good second one where's this awful object waffle object third one it's a kind of information most important one there that's why we're doing this we don't want to be poor right Hey and offer an offering acceptance there you go we got to know those four essentials of a valid contract you should be able to say it like blindly cable pardons lawful logic consideration offer and acceptance cable parties lawful object consideration offer an acceptance after an acceptance could sometimes we call meeting of the minds mutual consent but either way it means the same thing you want it I want it great high five we're good to go okay so you've got to have those four so you guys ready for your first question early on I know it's quick we just started ready yet that's ready okay so let's look at this question and see what you guys think the answer is it would be okay so can things be Christian wouldn't you think huh let me see a I think it's a I'm sorry Wow yeah you're easily swayed huh I jumped the gun I had to agree I had to read I had to go over it again I say I agree with christen okay okay okay B hello let me give you guys a little hint with test taking your fish first impulse is almost always correct uh yeah okay so I've been doing the exam prep going on 15 years now and one thing I've learned is first impulse is always correct when you second-guess yourself and you're not sure you usually end up adding it into the wrong answer now obviously there's good times to review questions and see you did what you didn't do right so and you may find some valid things like oh what was I doing that wasn't right but if you're ever not sure and you're torn between two answers go with your first impulse okay so my other advice to you when you're taking the test jot down your first impulse always so very often when you take a test you guys look at a question saying I'm going to come back to that question do you guys do that yep so when you guys do that the danger is you come back you don't remember your first impulse wasn't also you may have run out of time by the end of the exam you may be tired there may be many factors so on your scrap paper jot down what that first impulse was when you do come back and your brain is drained you're right on time at least you remember what the first impulse was you'll just fill in that answer these as shown here with Pam the first impulse was correct okay so we look at this one it's lawful object competency and mutual consent and consideration performance is not a part of a valid contract before contract is essentially establishing you want somebody to perform it's not performance itself okay so you see it here and there yeah and execution contract says I want you to perform I want you to execute this it is not the performance itself that makes sense it's an offer before okay next we have capable parties do you guys know the story McCulloch Hawken yeah you guys may not be a fan but we were all fan of the first movie right before he went all kooky and home alone yes so what you have cable parties this must be at least 18 sound of mind and give it or given the authority on behalf of corporation or given the power of attorney the reason I say McCulloch Holcomb is he was very famous not only for his movies but he did something else that made him really famous in the tabloids he divorced his parents oh yeah yeah he became an emancipated minor okay right there he became an emancipated minor which means under 18 and the courts gave him the authority to act as an adult a capable party there's other ways you could do this you could get married makes you a table party and if you serve in the military um further details I'm not sure about but you do understand that cable parties is a central part of valor contract therefore if somebody's not of sound mind then they sign a contract that contract becomes not valid all right so what do you guys think the answer is here unenforceable being unenforceable good all right right there he sees uh he has not been emancipated uh unemancipated minor okay so you're correct before excellent okay okay lawful object must have a legal purpose contracts that a legal purpose is void can you have a contract to kill you can it not a getting to the law you couldn't but ya know it's illegal right so contract to kill is obviously a terminology is great for movies and news but legally that's no contract at all because it's a little purpose okay so you must have a legal purpose that would make it void all right mm-hmm okay consideration love and affection can also be considered consideration all right so it doesn't have to be money technically consideration is anything of value and this is important because on your exam they'll trick you and they'll say money and you think money oh yeah obviously money I'm selling I want money I don't want a hug you know but technically consideration is anything value could be love and affection could be money could be a new car if you want hmm and here's the one offer and acceptance okay so offer acceptance is pretty clear with everything I want it you want it great shape hand and you're good to go I wrote here must be non illusionary what do you guys think I mean by that non illusory something that is must be clear so it can't be uh must be clear in character non illusionary well let me ask you guys how much is a house worth in your area uh half a million half a million okay at the million half a million so can i buy a house for a half a million dollars yeah sure if you told me the house is worth around half a million haha no so you couldn't say homes Virginia are worth a whole lot of money like how much it's just like a whole lot well what's a whole lot just trust me it's great it's like a great deal to get ton of money you'll like it give me the exact amount five hundred ish or something all right could you do that no you said half a million dollars that's five hundred grand done alright that's what it's worth that's exact loser a would be if you said I don't know somewhere like half-ish give or take you know whatever ten bucks okay yeah that's they mean it must be exact okay do you remember the Oh our rule from last session yeah okay tell me again about that Oh our rule Oh our is the giver and EE is the one who received yes so last our last session we said lessor vendor store options give for the profit or for your pleasure offer Alessi vendee gives me property makes me happy hey offer or offer eat offer ORS giving an offer offer e receives an offer okay and what's a counteroffer the receiver changes the term to the giver okay so look at it like this the offer e becomes the offer or outlet flip think of it in those terms mm-hmm well many people often think the counteroffer is a modification of the original offer right and they think that because in real terms it's true that's kind of what it is you're modifying the original offer but technically legally it's a brand-new offer in most states when you make an offer on a property it says one somewhere on the contract and then we're gone and then when you respond that's number two okay it'll go back three four weeks that's the second offer third it's a brand new offer so it is not you offer five hundred grand to me and I modify let's make it five ten that's not what happens what's happening is I'm saying I will terminate your offer for five hundred grand for my house and in turn I'll make you a new offer of my house for your five hundred and ten grand mm-hmm so it's a brand-new offer so it terminates the original offer mm-hmm all right so here we got this one Hey um well actually be okay Kristen says see you Sadie see what the answer is here all the above is a new offer so requires the signatures so when you have a counteroffer be able to sign on it and it's a rejection of the original offer remember terminates that original offer okay all right it's another question for you guys in writing a okay not good so that is excellent because you may get this wrong real estate exam because conventional wisdom is you put contracts and writing obviously you do to make it secure but it is not one of the four essentials there are things called oral contracts even oral listings so people get this wrong because real estate contracts are in writing but you got to remember what the question asks what are the four essentials of a valid contract so this is one people get wrong all the time remember our mutual consent cable parties lawful object and consideration writing is not one of the four essentials if any they call like a fifth essential kind of like a sixth sense if you will because it's just so common in such a regular part of contracts statute of frauds and this leads me to the next slide determined with contracts must be in writing so it says which contracts must be in writing sales contracts deeds mortgages but remember that previous con the previous question said what are this what is not an essential element period it didn't specify so that question is alluding to all contracts to make contracts a contract this slide shows you which types of contracts needs to be in writing deeds mortgages things of that nature alright some states allow aural listings for less than one year a broker needs an employment contract yeah time is of the essence is on contracts that is a key element of your listing contracts okay offer contains a time period and an expiration date typically you might say 90 days a or whatever the duration of the listing may be as is clause be very careful of this one so as is what does that mean what is it as is clause meet up find the property with existing conditions so as is as it stands yes the catch is though just because it as is doesn't mean that you could keep hidden things you still have to disclose what is is so may say as is but people tend to say it's as is you see it that's what it is you still have disclosed all the things are defective about the property so what to protect have to protect everyone right what you're saying is I'm selling as is and I'm not going to require to make repairs right then pour a distinction we went over this last time we're talking about leases so we said this thing about assignment in the last session do you remember what an assignment was in a contract so we talked about in terms of a lease last time we talked about assignment and sublet I remember um so an assignment is when you get rid of the contract right mm-hmm so when we talked about a lease we said sublet an assignment a sublet is when you give somebody the right to use the property but you still have responsibility it is when you give the responsibility as well okay the contract is assignable unless the state law forbids it and remember we said that landlord has to state you are not allowed to sublet or assign if he doesn't state it then they could do it remember I said in most conventional leases it states you cannot sublet or a sign a sign or s ID remember that OREA rule assignors the one transferring assign a is the one receiving that responsibility and here's my example from last session you are the assign or and the new owner is the assignee the landlord will now expect the lease payment from the new owner the assign e Novation assignment does not relieve the assignor from liability unless Novation has been granted what is innovation you guys ever heard the stir you're gonna hear a lot of Latin ad valorem Nova lease pendants it's a lot of Latin that comes up and this is important one do you know what Nova stands for aa new okay Nova is Latin for new the substitution of one contract from another and can release liability Nova's Latin for new gotta know that one it would be no vacant there you go excellent good just remember Nova new Nova new you guys remember the last class and I'll read em fit size and in this one the importance of narrowing down things to key words so Nova knew last time I said real property in movable personal property movable you really want to nail things down to the most minimum information you have to remember to make it easier if you to pass so when you see nova seenu you're good to go this obviously doesn't work use the word new person is substitute for another in a contract and it's in you it's new so Novation new gotta remember that specific performance it's basically making me do a certain act for example if I promise sell the house you can actually sue me to sell a house if you fulfil all your parts of the contract okay you're suing me to perform a certain act specifically this is a lawsuit between buyers and sellers this is not between the brokers programs do not sue for specific performance okay rescission rescission is almost like the opposite of assignment all right you're getting out of the contract you're not given somebody new you're turning the contracting party it's the same legal position they were in before it's a way to void out the contract all right are we all good any questions no this is good it makes sense all right good sense huh all right this is one I love the earnest money deposit so you guys want to sell a house what do you get right from the beginning to say that this person serious about the offer so I want to buy your house okay and I say I want to buy your house Kristen Pam I'm interested in buying your house I'm really excited after being very excited I would think that we need to make some type of good faith on you wanting to buy my house they want to buy my house yes because let's be honest if I said you guys I want to buy your house just right now I want to buy your house you really that's nice you know you're not you're not really taking it seriously just yet you guys like me and you're like great good for you what could you do but if I showed up to your house and I said I wanna buy your house and here's $10,000 to say I want to buy it and if I don't follow through with this assuming conditions are met you keep that money now also you're thinking what oh okay he's for real right he really wants this right words I'm making an offer okay well it's my little picture of a guy wanna buy a house and agree I'm making it offer and I'm saying I want to buy your house and I need to put out a deposit yes the contract is needed there so it's the first part of that contract that says hey I need you to put that deposit down okay so what does it sound like if I'm offering to buy your house and I need this deposit similar to me saying I'm making proposal to buy your house but I need something to show that I'm serious proposal serious what comes to mind immediately when I say the word proposal ah if I'm going to propose to you what comes to mind um a contract I mean all right Thank You Kristen said marriage excellent yes yes put a ring on it yeah and I want you to remember this because it's the same thing and I don't want to deflate a lot of people who love the idea of engagement rings and all that but originally that's what it was before was like a beautiful engagement ring it was saying yeah I want to marry your daughter and here's my deposit and that's what it was it's not her romantic sexy but in modern culture we've evolved into this beautiful romantic thing but at its core it was a deposit that's what it was right hey so if I showed up to you and I said Kristen Pam will you marry me and I still have a ring you look at me and think loser right he's not serious what is it take it what is he doing you need a ring right and if I put over the ring all of a sudden you say wow he's serious and be very excited and that's when you laugh and smile and cry we hug and all these great things means now I have that ring just show that I'm serious about my offer that's my earnest money deposit and we get married and a little heavily ever happy excuse me happily ever after so you may say if you follow you this logic if you take my deposit the ring when you say I do at the altar you know finally we're officially married escrow is closed think about a think of it like that so that engagement period is kind of like that escrow period you know where we're going through contracts making sure everybody's a good guy and all that kind of things okay yeah all right you use that analogy and very similarly if I gave you an engagement ring said I love you you're the one for me and then I went and cheated on you and did things with other women it was horrible guy would you give me my ring back no I would not exactly I'll keep the ring but I'm keeping it to the curb yes I can try it maybe one hell of a fight yeah it's this ethnic thing with the earnest money deposit if I give this to you and then I violate the contract all the terms we met I may be able to get that money back but it'd be one hell of a fight and you put it out that yeah you put in those terms it's the same thing I mean that night is it deposits the same thing I'm putting an offer and ready to go you like a little picture than that yeah okay we'll never forget that yeah I just remember I give you a ring and then once we say I do escrow is closed so when I get in here escrow is open you have the contract posit or good to go okay so I mentioned this before earlier in this lesson but I want to really hit home with it this content - valid void and void a bowl I nearly mentioned a lot but I mentioned a little bit very important you understand that there is a valid void or voidable it's very simple concept that people confuse all the time okay do you guys want to get stab at it really quick before I go into it would you like me just to go right into the explanation um I could try to take a stab at it okay go for it I think valid is it's it's true okay true it's it's true void means it is um there's something within the contract or it could be I guess it's not always referring to contract but it's void it's no good it's not usable for for whatever reason and voidable is potentially void yeah so i actually gave an example of a void contract before earlier in this lesson if you remember my example the contract to kill all right right right right okay that makes it void so let's go through these a little bit so valid I mean let's let's put in the simplest terms possible I want a blue house I offer to buy them a new house we signed a contract for blue house you give me a blue house right now what is that it's that valid valid I want a blue house you gave me a blue house we're good to go right but now here's a question what if I go to buy the blue house and the house is green is that valid void or voidable kind of give the answer in my slide should have thought ahead on that one a little better let's get it so why is it voidable so I obviously give of the answer before I went to next slide but why why is that voidable I wanted a blue house you gave me a greenhouse why is that not void these you're not coming through with your part of the contract okay so watch why is that not void why is that void a bowl could I don't know what take a stab at representation okay and once again when you guys study for this and this is also an excellent um practice get into try and simplify everything well I said excellent practice was you guys going to work with clients a lot of complicated concepts the more you can simplify stuff the more relatable relatable you'll be and the more desirable you'll be as a real estate agent most simple terms I wanted a blue house you gave me a green house I'm upset it's not blue but after looking at that green I kind of like it it kind of works for me I'm kind of into the green didn't think of it before the green works for me should I still have the right to follow through and purchase that house sure exactly that's why it's void to bowl not void because even though you didn't fulfill your part of the contract I still want that house void like that contract to kill example I don't have the option to follow through with that I the option to follow through with this so it's void a bowl not void right there's my guys the green house so voidable to rest miss orientation fraud all these are voidable okay that example was misrepresentation that just gave right now all right so follow-through that logic let's talk a little about to rest okay and there's a gun pointed at you and the guys saying buy the house buy the house is that void or voidable I mean you're you have a contract in front of you there's a guy with a gun to your head saying if you don't buy this house I'm going to do some horrible things here you have to buy the house that void or voidable a but I'm have me a little frightened right so you're frightened you're scared all these horrible thing yeah right is that right Boyd a bull the contour I would I would think this gun let me ask you this okay you go to this guy makes you sit down at the table sign this contract gun to your head did it all these terrible things okay you do not have to follow through that purchase fees obviously you're under duress okay okay your B boy you're under duress so according to the law you do not have to follow that contract right but wait a minute what if as all as horrible things is happening you look at the contract and you're like men the guns really not necessary this is a great deal I don't know why you're freaking out about this I kind of want this house hey do you have the right hat wouldn't purchase it yeah yes yeah so it's Boyd a bull so you can actually turn this horrible person but excuse me sir the guns not necessary this is a tremendous deal I mean you really went overboard with it I was planning getting this anyway and you're just making this awkward now okay so that makes it void to bowl not void two less threats misrepresentation what it does it gives you the option to rescind okay so think of it like this somebody else acting inappropriately shouldn't take away your ability to follow through as a contract okay that's why it's void to bowl and not void all right yeah important distinction there people make that mistake all time they have examples on exams where you being threatened does that make a void like oh yeah threats terrible void no voidable okay so void contract lacks one of these things mutual consent lawful object consider raishin or capable parties use extent you agree lawful object okay consideration there has to be a purpose for this and capable parties all right here we go we got a question here tell me what you guys think the answer is what do you guys think only by Bob right good excellent okay and is this contract void or voidable oh boy I think void of all it's void a ball remember Bob has the option to go through with it okay so Bob can make it void but here's the option make it void a bull excuse me use the option make it void because it's voidable all right here we go please and the answer is to this one point yeah okay void a bull ah he'll be I guess like the option of hey all these contain yeah so it's void a bowl these remember so here if you look the least contains a sign up clause requiring the consent of the landlord so this requires your consent as a landlord I is the lessee assign the lease without your approval you're angry right hmm but once again so you have the option to say no you can't do that I never agreed to it but what if you assigned it to Kristin and I'm like you know what Pam doesn't sign contracts she doesn't agree to anything really annoying I like that she assigned it to Kristin I didn't say she could do that but Kristin seems like a great person so as the landlord don't I have the option to follow through with that so you app yeah because I like I like the idea that you assigned it to Kristen just easy you acted inappropriately by not agreeing with things that do stuff shouldn't take away my option to follow through with Kristen okay so it's void a bowl not void void would insinuate I can't follow through with a contract Kristen but because we didn't agree it's void a bowl not boy okay all right what's the answer this one oh that's void excellent angry good and I use that example contract to kill bees it just really sticks in your mind it's a horrible morbid example but it also D values every James Bond movie was that contract that was licensed to kill right not contract yeah but there's all the same premise okay didn't boy mmm-hmm alright so at this point we did the basics of contracts and hopefully give you a good basis to kind of follow through with in your exam and do contract questions there are more details I could go through with contracts if you want me to I'm happy to do it just send me the information I'm going to go through and I can kind of put together some slides and questions to help work on those but that is a good groundwork of contracts that was a good 40 50 minutes we went through there so I'm kind of thinking that we leave government power for another day or would you guys like me to go through government power quickly um I would love you to go through it it's up to Kristen if she's got the time yeah I'd love to I have the time I have painters here on my house though and it's so distracting right now I'm struggling okay I will give it my all I really you know what I'm interested in yes what's that um wills and and how property is distributed after someone passes whether they have a will or not if tested and tested all of this excellent so I can definitely over that I'm very well informed of that topic um so let's you I would like you to email me a little bit later what you'd like me to go over and then how about we say Friday I'll cover that topic because I'll give me time to put together some nice slides a nice little lesson for that one perfect your any awesome you know so interested yes take your time of how its divided I will caution you a lot of that depends on state law so and we will go over that though okay okay with distribute appetite just should be into errors and whatnot so email me that and then I will see what we could go over what we can't go over with that and I'll try and do my best to help you out um and the same thing goes out to anybody listening but yeah so let's plan them Friday um okay here's what I'll do let's go over the government power quickly okay and see what we can learn here okay so first I want you to do is remember the name Pete so I want you to remember the name Pete or talking about government powers all right what it stands for is police power eminent domain taxation and is cheat okay these are rights individuals but not in half please power eminent domain taxation and escheat and please utilize these memory techniques the best you can last week you remember we said Maria what was Maria for ah method adaptation would oh gosh relations Oh relationship and tension and agreement and an agreement yeah so method adaptability relationship intention and agreement okay so this one Pete police power eminent domain taxation and a sheet I'm assuming you guys heard this before in her classes right your teachers told you this one Pete oh I didn't hear it oh well I'm glad you're here now Kristen now you've heard it um good okay so first I got police power we're not talking about the actual police are we actually far from it now our state's inherent right to regulate the individuals conduct or property to protect the health safety welfare and general and morals of the community health safety welfare and morals when you're taking the exam okay another little hint for you on your real cities and hopefully these hints really help you the government's always going to be portrayed in a positive light whenever you hear a neck when asked about the government of the state it's the answer is never going to be they stink they're horrible it's always going to be something positive health safety welfare moral Superman heroes there to save the day okay so just remember who's given the exam okay so please power for the health safety welfare and morals of the community women talk about police power talking about zoning building codes and rent control thank God for police power and because without these things it would be terrible cute guys give an example of Zoning um for your schools and yeah yeah if gold churches businesses they all are zoned right well let me ask you this do you want to live next to a gas station now and a gas station does want to be near you either thank God for zoning okay that's where a zoning comes it prevents things of that nature so it helps sector the communities and we're all living our appropriate areas that's why there's houses next to you and not gas stations Building Codes obviously to make it safe and rent control um point of controversy for a lot of people but those are police powers and it's there to help the community function as part of a larger master plan you guys aren't been to Lausanne Julis yes yeah there's no master plan there at least there wasn't beginning it was chaotic and you probably noticed the 10 host the 101 goes to the 405 and sneaks in all sudden is Pasadena Hollywood it's all over the place and that's why they have that horrible traffic so it wasn't such a plan they tried to fix it now but in the original times it was a little bit hectic what city are you and Kristin I'm right outside of Houston I'm in Sugar Land yes ever okay um I've been to Houston I saw the monument Kennedy all that kind of stuff actually that was Dallas all right edit that out okay eminent domain doesn't it sound scary to you guys eminent domain sounds kind of like Star Wars eminent because when you think something's eminent what do you think up you think it's like inevitable and people are bad huh when I hear it I think it that it's going to happen that it's it's um Everitt know it's very scary it's like a scary word eminent domain um and for good reason it is like all-encompassing all-powerful it's the government's ability to take over the property for public use so basically I if I'm the government I could take over your property whether you like it or not its eminent my take over if you want to look at it like that now it sounds very scary and I say that to help you remember the exam but in reality it's a very important part of having a functional city because if there's a highway that has to be built in order for people to get to work and go to their jobs and your house is right in the middle of where the highway would be well sorry we got to build that highway so the rest of the city could function it stinks for you but just compensation would be paid to you you would get money because the city needs that area to function so they could have their how they go through and they do this through the power of eminent domain okay so they take over property for public use public utilities highways railroads as I said it may not be good for that property owner but it's necessary so the city could function okay that process of giving you the money it's called condemnation you ever heard this word before yeah so this is where I'm paying you for that property so condemnation is the process by which the property of a private owner to take a republic use under the right of eminent domain just compensation is paid to the owner so that's the process of you getting money what if they don't give you the money what if they say you know what we didn't really take your property but you're like the highways going right perhaps my backyard you just ruined my property so they decide not to give you the money but you think you deserve the money you think the property was ruined what do you do file suit yes you actually sue the government and what this is called is inverse condemnation okay inverse combination is a term using the law to describe a situation which the government takes private property but fails to pay the just compensation required by the Constitution so you are actually literally suing the government just as Kristin said to get that money right and here are some examples I put citywide is Boulevard market claims of loss odds business so they could sue for inverse combination the market wants to value the entire parcel including the market building there's different situations where it comes up remember inverse condemnation is basically you're suing the government is they didn't give you just compensation when they took your property under the rights of eminent domain taxation all know what that is right charge on real estate to pay for services provided by the government as cheat is when the property reverts to the state ownership when an individual dies without heirs think of it like this the government cheated to get the property not there is why do they own it they got it they cheat it so it's cheap so if you have no heirs no family in all reality they're not cheating they're saying if we can't find anybody to give this to then it revert to the government okay that's as cheat and those are four primary government powers police power in a domain taxation and is cheat all right so what's the answer to this one B as in boy PE good excellent all right so that was a brief go over of government power that actually didn't take as long as I thought it would so we're good to go for today and I'm gonna do sing on Wednesday and hopefully you guys join in again it just really helps me go through and perfect what I'm doing here if you have any feedback please write it for me and I'd really appreciate it because I really want to be able to put forth a good product here and do a good thing for everybody so I hope you guys liked it thank you thank you so much alright so Wednesday it is and then Kristen just jot down stuff you want me to go over and I'll see if I can put together presentation on Friday awesome you're awesome thank you you're welcome there you go okay see you guys later I see win daily good bye bye