Real Estate Contracts and Legal Requirements: Florida Property Law chapter 11

What are the four essential elements that make a contract valid?

1. Consideration 2. Offer and acceptance 3. Legal parties 4. Competent parties

What is a listing agreement?

An employment contract between a broker and a seller.

What is a buyer brokerage agreement?

An employment contract between a broker and a buyer.

What are the two types of consideration?

1. Valuable consideration 2. Good consideration

What does the Statute of Frauds state?

Any contract that conveys any interest in real property must be in writing to be enforceable.

List the contracts that must be in writing to be enforceable per the Statute of Frauds.

1. Purchase and sales contracts 2. Option contracts 3. Deeds and mortgage instruments 4. Lease agreements for a term longer than one year 5. Listing agreements for a term longer than one year 6. Buyer representation agreements for a term longer than one year.

What is the Statute of Limitations on a parol (oral) contract?

Four years.

What is the Statute of Limitations on a written contract?

Five years.

What is the purpose of the Statute of Frauds?

To make contracts enforceable.

What kind of contract obligates both parties?

A bilateral contract.

What kind of contract obligates just one party?

A unilateral contract.

What kind of contract expresses all the detail in the contract?

An express contract.

What kind of contract is not complete?

An executory contract.

What kind of contract is complete, and all parties have fully performed?

An executed contract.

Who are the offeror and the offeree?

The offeror is the one making the offer; the offeree is the one receiving the offer.

List the things that can terminate an offer.

1. Counteroffer 2. Acceptance 3. Rejection 4. Withdrawal by offeror 5. Lapse of time 6. Death or insanity 7. Destruction of the property.

List the things that can terminate a contract.

1. Performance 2. Mutual rescission 3. Impossibility of performance 4. Lapse of time 5. Breach.

What are the three legal remedies for breach?

1. Suit for cancellation 2. Suit for specific performance 3. Suit for damages.

What are the two types of damages?

1. Liquidated damages 2. Unliquidated damages.

Which types of damages are not disclosed in the contract and also called compensatory damages?

Unliquidated damages.

Which type of damages are disclosed in the contract?

Liquidated damages.

What are the three types of listings used in Florida?

1. Open listing 2. Exclusive agency listing 3. Exclusive listing with right of sale.

Which type of listing can have more than one broker that lists the property?

An open listing.

Which two listings does the broker not receive a commission if the seller finds the buyer?

1. An open listing 2. An exclusive agency listing.

Which type of listing does the broker receive commission even if the seller finds the buyer?

Exclusive listing with the right of sale.

Which type of listing does the seller require a net amount in order to list with the broker?

A net listing.

Are option contracts unilateral or bilateral?

Unilateral.

Can a broker purchase an option contract and later sell it for profit?

Yes.

What is the definition of an option contract?

An agreement to keep open for a specified period of time an offer to sell or lease real property.

If only one spouse's name is on the deed or the listing contract, and the home is homestead, who is required to sign the deed or the listing contract?

Both spouses.

Does a licensee have to legally disclose the fact that someone died, had HIV, or that there was a homicide or suicide in the house?

No.

What law is being broken if the seller does not give the HOA disclosure to the buyer?

Florida Statute 720.

What are the four things a seller is required to do if they are selling a house that was built before January 1, 1978?

1. Disclose the presence of lead-based paint 2. Give buyers a disclosure about the dangers of lead-based paint 3. Give the buyers an EPA pamphlet about lead-based paint 4. Give the buyers 10 days to inspect for lead-based paint.

Who is responsible to give the HOA disclosure to the buyer?

The owner/seller.

What is on the Homeowners Association Disclosure?

Restrictive covenants and special assessments.

What is the property tax disclosure for?

It warns the buyers not to rely on the seller's current taxes to be their own.

Are we permitted to hold lotteries in Florida?

No.

Does bankruptcy terminate all contracts?

Yes.