FL Exam sec 11 - Real Estate
Contracts 12% Questions with Verifie
Answers
Contracts (in general) - ANSWERSagreement 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 - ANSWERSLicensees 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) - ANSWERSis brokers employment contract with
seller. typically sales associate that obtains listing
buyer brokerage agreement (4 types of contract) - ANSWERSemployment contract with
buyer
sale and purchase contract (4 types of contract) - ANSWERScontract 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) - ANSWERSagreement 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 - ANSWERScomplies 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) - ANSWERSnot 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) - ANSWERSparties 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) - ANSWERSprovisions 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) - ANSWERSwhatever 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 - ANSWERSmoney or promise that can be measured in terms of
money
good consideration - ANSWERSpromise that cannot be measured by money; such as
love and affection
statute of frauds - ANSWERSrequires 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 Florida's statute of
frauds include:
-purchase and sale contracts
-options contracts
-deeds and mortgage instruments
-lease agreements longer than a year
-listing agreements longer than a year
statute of limitations - ANSWERStime during which terms of contract may be enforced.
protects people from being sued after a period of time has expired
Contracts 12% Questions with Verifie
Answers
Contracts (in general) - ANSWERSagreement 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 - ANSWERSLicensees 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) - ANSWERSis brokers employment contract with
seller. typically sales associate that obtains listing
buyer brokerage agreement (4 types of contract) - ANSWERSemployment contract with
buyer
sale and purchase contract (4 types of contract) - ANSWERScontract 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) - ANSWERSagreement 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 - ANSWERScomplies 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) - ANSWERSnot 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) - ANSWERSparties 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) - ANSWERSprovisions 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) - ANSWERSwhatever 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 - ANSWERSmoney or promise that can be measured in terms of
money
good consideration - ANSWERSpromise that cannot be measured by money; such as
love and affection
statute of frauds - ANSWERSrequires 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 Florida's statute of
frauds include:
-purchase and sale contracts
-options contracts
-deeds and mortgage instruments
-lease agreements longer than a year
-listing agreements longer than a year
statute of limitations - ANSWERStime during which terms of contract may be enforced.
protects people from being sued after a period of time has expired
