FL Exam sec 11 - Real Estate Contracts 12% Questions and Answers 100% Pass

FL Exam sec 11 - Real Estate Contracts 12% Questions and Answers 100% Pass Contracts (in general) - Correct Answer ️️ -agreement between two or more parties to do or not to do certain things -valid -contains all valid essentials -void - lacks one essential -voidable - maybe valid or void by one of the parties -enforceable - courts will enforce -unenforceable - courts cannot enforce Authority of real estate licensees to prepare contracts - Correct Answer ️️ -Licensees may not draw lease agreements but fill in blanks on lease instruments on lease periods that dont exceed one year that are preapproved by florida supreme court. Allowed to assist buyers and sellers fill in blanks on four types of standardized contracts drafted by attorney and made available through local realtor boards and associations : -listing agreement -buyer brokerage agreement -sale and purchase contract -option contract listing agreement (4 types of contract) - Correct Answer ️️ -is brokers employment contract with seller. typically sales associate that obtains listing buyer brokerage agreement (4 types of contract) - Correct Answer ️️ -employment contract with buyer sale and purchase contract (4 types of contract) - Correct Answer ️️ -contract between buyer and seller. if licensee is agent and facilitator for one or both parties licensee may prepare sale and purchase contract option contract (4 types of contract) - Correct Answer ️️ -agreement to keep an offer open for specified period of time an offer to sell or lease real property. advised to tell buyer or seller to have attorney draw up an options contract. valid contract - Correct Answer ️️ -complies with provisions of contract law. contains 4 essential elements -contractual capacity of the parties -offer and acceptance -legality of object -consideration contractual capacity of the parties (4 essentials of contract) - Correct Answer ️️ -not everyone can make a valid contract, they must be COMPETENT (no legal mental defects or insanity and be of legal age) offer and acceptance (4 essentials of contract) - Correct Answer ️️ -parties must come to: -MEETING OF THE MINDS - parties must reach agreement on all terms in contract offeror makes offer and offeree accepts legality of object (4 essentials of contract) - Correct Answer ️️ -provisions spelled out in contract must be for legal purpose. example: if contract states that assistant will take commission, its UNENFORCEABLE because this is illegal. consideration (4 essentials of contract) - Correct Answer ️️ -whatever is given in exchange for something else -earnest money deposit is NOT the consideration -deposit is made to show seller, buyer is serious- seller promises to sell and convey, buyer promises to pay 2 types of CONSIDERATION -valuable consideration -good consideration valuable consideration - Correct Answer ️️ -money or promise that can be measured in terms of money good consideration - Correct Answer ️️ -promise that cannot be measured by money; such as love and affection statute of frauds - Correct Answer ️️ -requires that contracts conveying an interest in real property and contracts not to be performed within one year of date created must be in WRITING and SIGNED to be enforceable. contracts covered by Florid