Florida Real Estate Contracts: Preparation, Essentials, and Disclosures

Who is allowed to write contracts in real estate?

Only an attorney can write contracts; real estate licensees can fill out prepared contracts.

What is the maximum duration for residential lease agreements in Florida?

Residential lease agreements cannot be greater than one year.

What mnemonic helps remember the essential elements of a contract?

COLIC: Competent Parties, Offer and Acceptance, Legal Purpose, In Writing, Consideration.

What does 'Consideration' mean in the context of contracts?

Consideration can be valuable or good; it must have value to the parties involved.

What is the Statute of Frauds?

It requires that all contracts conveying an interest in real property and those not to be performed within one year be in writing to be enforceable.

What is the written statute of limitations for contracts?

5 years for written contracts and 4 years for oral contracts.

What are the three requirements for an oral contract to be enforceable?

Paid the price, Improved the property, Possesses the property.

What must happen for a purchase and sale contract to be valid?

All parties bound by the contract must sign it.

What is a unilateral contract?

A contract that requires only one party to perform.

What happens when a seller counters an offer?

The seller becomes the offeror and the buyer becomes the offeree.

What mnemonic helps remember ways an offer can be terminated?

WILDCARD: Withdrawal, Inability to Perform, Lapse of time, Death, Counteroffer, Acceptance, Rejection, Destruction.

What does 'BLIMP' stand for in contract termination?

Bankruptcy, Lapse of Time, Impossibility to perform, Mutual Rescission, Performance.

What are the remedies for a breach of contract?

Compensatory Damages, Rescission, Liquidated Damages, Specific Performance.

What is a listing contract?

An employment contract between the broker and a seller.

What types of listing contracts exist in Florida?

Open Listing, Exclusive Agency, Exclusive Right to Sell.

What is a Buyer-Broker Agreement?

An employment contract between the broker and a RAW buyer.

What is an Option Contract?

A unilateral contract allowing the Optionee to hold a property without the obligation to perform.

What is required in a Sale and Purchase Contract?

It must include the seller's and buyer's details and earnest money information.

What are mandatory disclosures for real property in Florida?

Material Defects, Radon Gas, Lead-based Paint, Energy Efficiency Brochure, Homeowners Association, Property Tax, Building Code, Community Development District Disclosure.

What is the significance of the Johnson v. Davis case?

It pertains to the disclosure of material defects in real property transactions.

What is the 3-day right of rescission in real estate?

Buyers have a 3-day right to cancel after notification of buying in an HOA.

What is an Estoppel in real estate transactions?

A document showing fees and violations to prospective buyers in an HOA or condo.

What does a net listing entail?

The broker is paid from the proceeds of a sale, which can be Open, Exclusive Agency, or Exclusive Right to Sell.

What is the role of a cooperating broker?

To bring a qualified buyer (RAW) to the seller.

What is the difference between assignment and novation in contracts?

Assignment mandates performance by the original party if the assignee defaults; novation substitutes a new party, relieving the original party of obligation.