What is an important legal characteristic of an option to buy agreement?
What is an important legal characteristic of an option to buy agreement? The potential buyer, the optionee, is obligated to buy the property once the option agreement is completed. The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so.
In which of the following cases would an estoppel certificate be needed?
In which of the following cases would an estoppel certificate be needed? The holder of a mortgage loan sells it, and the buyer of that loan wants the mortgagor to acknowledge the full amount of the debt still owed. The broker procures a buyer who can meet the seller’s terms and conditions.
Which of the following is an example of ostensible agency?
The term “ostensible agency” refers to the relationship that exists between two parties and that leads a person to believe that the first is an agent of the second, or vice versa. For example, ostensible agency would apply to a hospital worker who is employed by an outside contractor.
What is ostensible agency in real estate?
An agency created by law when a principal acts (intentionally or negligently) as if one is an agent who in fact is not. See also: Apparent Authority.
What is estoppel agency?
Agency by Estoppel: If a principal (NOT THE AGENT) holds out to a third party that another is authorized to act on the principal’s behalf, and the third party deals with the other person accordingly, the principal may not later deny that the other was the principal’s agent for purposes of dealing with that third …
What is an example of an estoppel?
If the court has established in a criminal trial that someone is guilty of murder, the legal doctrine preventing the murderer from denying his guilt in a civil trial is an example of estoppel. …
What is an estoppel why is it used?
An Estoppel Certificate (or Estoppel Letter) is a document often used in due diligence in Real estate and mortgage activities. An estoppel certificate provides confirmation by the tenant of the terms of the rental agreement, such as the amount of rent, the amount of security deposit and the expiration of the agreement.
How much does an estoppel letter cost?
Most of the time this fee ranges from $500 to $3,000 — which isn’t small change when a buyer isn’t expecting this cost. 4.
Who prepares the estoppel letter?
When prepared by the buyer, however, the estoppel certificate can be tailored to the specifics of the lease, and can provide an opportunity, as discussed above, to clarify lease ambiguities identified by the buyer during its due diligence review.
How do I get an estoppel letter?
It is usually the title company handling the closing that will request an estoppel letter from the HOA. The HOA is obligated to provide the estoppel letter, and an authorized representative from the association must complete and sign the document within a certain amount of time.
What is estoppel request?
Estoppel is another such term. In the broad legal sense, an estoppel is “the principle that precludes a person from asserting something contrary to what is implied by a previous action or statement of that person or by a previous pertinent judicial determination.”
What is equitable estoppel in law?
More simply put, equitable estoppel is generally words or conduct which cause another person to believe a certain state of things exists and to consequently change his or her position in an adverse way.
What is another term for equitable estoppel?
equitable estoppel, sometimes known as estoppel in pais, protects one party from being harmed by another party’s voluntary conduct. Voluntary conduct may be an action, silence, Acquiescence, or concealment of material facts.
How do you use equitable estoppel?
Essentially, equitable estoppel is a method of preventing someone from going back on his word in a court of law. For example, equitable estoppel would be granted to a defendant if the plaintiff previously gave his permission for the defendant to do something, and then sued the defendant once he did.
What are the elements of equitable estoppel?
As the Court explained, the elements of an equitable estoppel defense are: (1) knowledge by the plaintiff of the defendant’s infringing acts; (2) the plaintiff’s intention that the defendant rely on its acts or omissions or the defendant’s right to believe that it was intended to rely on the plaintiff’s conduct; (3) …
Why is equitable estoppel important?
Equitable estoppels create an equity which is itself a source of rights. 13 Because common law estoppel prevents the estopped party from denying a fact, such as the existence of a contract, the other party may theoretically be able to cross-claim on the contract for breach sounding in expectations damages.
Can equitable estoppel apply in the absence of a pre existing relationship?
Firstly it was found that an equitable estoppel could form the basis for an independent cause of action and secondly that such an estoppel could arise even in the absence of a pre-existing legal relationship.
What are the exceptions to estoppel?
Exceptions:
- It does not apply to those matters where both parties have the knowledge of truthfulness.
- It does not apply against statutes.
- It does not apply to regulations.
- It does not apply to ultra virus orders and decisions.
- It does not apply to questions of law.
- It does not apply to sovereign acts of the government.