Chapter 11 Flashcards
What are the four essential elements that make a contract valid?
- Consideration2. Offer and acceptance 3. Legal parties 4. Competent parties
What is a listing agreement?
A listing agreement is 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?
- Valuable consideration 2. Good consideration
What does the Statute of Frauds state?
The Statute of Frauds states that any contract that conveys any interest in real property must be in writing to be enforceable. This is fancy way to say, “all real estate contracts must in writing.” Not all contracts are required to be in writing, just real estate contracts
List the contracts that must be in writing to be enforceable per the Statute of Frauds?
- 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?
The purpose of the Statute of Frauds is 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
- 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
- Performance 2. Mutual recission 3. Impossibility of performance 4. Lapse of time 5. Breach
What are the three legal remedies for breach?
- Suit for cancellation 2. Suit for specific performance 3. Suit for damages
What are the two types of damages?
- Liquidated damages2. 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?
- 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?
- 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 option contract is 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 the some 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?
- 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
