Section 12: Working with Contracts in Florida Flashcards
Five essential elements to a valid real estate contract
1 Legally competent parties
2 Offer and acceptance
3 Consent
4 Legal purpose
5 Consideration
Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Which of
the following best describes this contract?
Contract is voidable
What is a contract that is based on an understanding or assumption, rather than on specifically defined
terms?
Implied contract
Consideration in a contract
an essential element of a contract, is something of value which is given from one party to the other party in exchange for goods or services.
A contract for an illegal purpose is…
void
What is a true statement about express agreements?
Express agreements may be wirtten or verbal
In a purchase offer, is earnest money required in order to have a binding contract?
No, because the buyer’s consideration is the promise to buy.
In Florida, real estate licensees may not fill in the blanks on a lease agreement that ____________.
Has a term longer than 1 year
Real estate sales contracts must be valid, express, bilateral, WHAT and executed or executory.
Enforceable
Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it
on the market while she waited to find out if her neighbor was going to buy. In order to receive the best
possible representation but avoid paying compensation if her neighbor buys the property, which type
of listing agreement would best suit Janice’s needs?
Exclusive Agency
With exclusive agency, the seller
retains the right to find a buyer and avoid paying compensation, but the seller’s listing will likely receive
more attention from the agent than it would with an open listing.
Statute of frauds states that if a contract transferring ownership fo real property is not in writing, it is…
Unenforceable
Grant owns a property that’s subject to an option contract. Grant is the ______.
Optionor
What is true about the statute of frauds?
Any form of written contract, including email communication, may be considered “in writing” and binding.
Who can record a lien against a property in Florida, according to the Florida Commercial Real Estate
Sales Commission Lien Act ?
A licensed real estate broker.
