Unit 11 - Real Estate Contracts

Question 1

Assignment

Answer 1

Written instrument that serves to transfer the rights or interests of one person to another.

Question 2

Attorney-in-Fact

Answer 2

One who is authorized to perform certain acts for another under a power of attorney.

Question 3

Bilateral Contract

Answer 3

An agreement wherein both parties are legally obligated to each other to perform.

Question 4

Buyer Brokerage Agreement

Answer 4

An employment contract between a broker and a purchaser.

Question 5

Community Development District (CDD)

Answer 5

An independent special district created pursuant to Florida Law to service the long-term specific needs of its community. A CDD constructs, operates, and maintains communitywide infrastructure and services for the benefit of its residents. CDDs provide an alternative way to fund and construct capital infrastructure to service projected growth.

Question 6

Competent

Answer 6

A party to a contract who possesses the legal capacity to enter into a binding contract.

Question 7

Enforceable Contract

Answer 7

A legally binding contract that the law will recognize.

Question 8

Exclusive Agency Listing

Answer 8

Employment contract given to one real estate broker as the sole agent for the sale of an owner’s property. If the agent doesn’t bring a buyer, then they are not owed a commission.

Question 9

Exclusive Right of Sale Listing

Answer 9

An employment contract given to one real estate broker as the sole agent for the sale of an owner’s property, with the commission going to that broker regardless of who actually sells the property during the employment contract period.

Question 10

Fraud

Answer 10

The intent to misrepresent a material fact or to deceive in order to gain an unfair advantage or to harm another person.

Question 11

Good Consideration

Answer 11

A promise that cannot be measured in terms of money, such as love and affection.

Question 12

Homeowners Association (HOA)

Answer 12

A Florida corporation responsible for the operation of a community or mobile home subdivision in which the voting membership is made up of parcel owners and membership in the HOA.

Question 13

Liquidated Damages

Answer 13

The amount of valuable consideration specified in an agreement as a penalty for default

Question 14

Meeting of the Minds

Answer 14

The point when two people, thinking the same thing, reach an agreement through an offer and acceptance.

Question 15

Misrepresentation

Answer 15

A false or misleading statement of a material fact; concealment of a material fact.

Question 16

Net Listing

Answer 16

An agreement or contract to sell or rent a property for a specified minimum net amount for the owner.

Question 17

Novation

Answer 17

The substitution of a new party and/or new terms to an existing obligation.

Question 18

Open Listing

Answer 18

An employment contract given to any number of brokers who work simultaneously to sell the owner’s property.

Question 19

Option Contract

Answer 19

A right or privilege to purchase or lease real property at a specified price during a designated period of time based on sufficient consideration.

Question 20

Parol Contract

Answer 20

An agreement that is not in writing.

Question 21

Procuring Cause

Answer 21

The person whose efforts are the cause of an executed contract; regardless of who actually writes the contract.

Question 22

Statue of Frauds

Answer 22

An act requiring that certain real estate instruments and contracts affecting title to real property be in writing in order to be enforceable.

Question 23

Statue of Limitations

Answer 23

An act that prescribes specific time restrictions for enforcement of rights by action of law.

Question 24

Unenforceable Contract

Answer 24

A contract that was valid when made or either cannot be proved or will not be upheld by a court.

Question 25

Unilateral Contract

Answer 25

An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party.

Question 26

Valid Contract

Answer 26

An agreement binding on both parties and legally enforceable against all parties to the agreement.

Question 27

Valuable Consideration

Answer 27

The money or a promise of something that can be measured in terms of money.

Question 28

Vendee

Answer 28

The buyer or purchaser of real property under an agreement of sale.

Question 29

Vendor

Answer 29

The seller of real property in an agreement of sale.

Question 30

Void Contract

Answer 30

An agreement that does not meet all required elements of a valid contract and has no legal effect.

Question 31

Voidable Contract

Answer 31

A contract that because of the manner or method in which it was brought about, one of the parties is allowed to avoid contractual duties.