Chapter 11

Question 1

What are the four essential elements that make a contract valid?

Answer 1

1. Consideration2. Offer and acceptance 3. Legal parties 4. Competent parties

Question 2

What is a listing agreement?

Answer 2

A listing agreement is an employment contract between a broker and a seller

Question 3

What is a buyer brokerage agreement?

Answer 3

An employment contract between a broker and a buyer

Question 4

What are the two types of consideration?

Answer 4

1. Valuable consideration 2. Good consideration

Question 5

What does the Statute of Frauds state?

Answer 5

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

Question 6

List the contracts that must be in writing to be enforceable per the Statute of Frauds?

Answer 6

1. 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

Question 7

What is the Statute of Limitations on a parol, (oral) contract?

Answer 7

Four years

Question 8

What is the Statute of Limitations on a written contract?

Answer 8

Five years

Question 9

What is the purpose of the Statute of Frauds?

Answer 9

The purpose of the Statute of Frauds is to make contracts enforceable

Question 10

What kind of contract obligates both parties?

Answer 10

A bilateral contract

Question 11

What kind of contract obligates just one party?

Answer 11

A unilateral contract

Question 12

What kind of contract expresses all the detail in the contract?

Answer 12

An express contract

Question 13

What kind of contract is not complete?

Answer 13

An executory contract

Question 14

What kind of contract IS complete, and all parties have fully performed?

Answer 14

An executed contract

Question 15

Who are the offeror and the offeree?

Answer 15

The offeror is the one making the offer. The offeree is the one receiving the offer

Question 16

List the things that can terminate an offer

Answer 16

1. Counteroffer 2. Acceptance 3. Rejection 4. Withdrawal by offeror 5. Lapse of time 6. Death or insanity 7. Destruction of the property

Question 17

List the things that can terminate a contract

Answer 17

1. Performance 2. Mutual recission 3. Impossibility of performance 4. Lapse of time 5. Breach

Question 18

What are the three legal remedies for breach?

Answer 18

1. Suit for cancellation 2. Suit for specific performance 3. Suit for damages

Question 19

What are the two types of damages?

Answer 19

1. Liquidated damages2. Unliquidated damages

Question 20

Which types of damages are not disclosed in the contract and also called compensatory damages?

Answer 20

Unliquidated damages

Question 21

Which type of damages ARE disclosed in the contract?

Answer 21

Liquidated damages

Question 22

What are the three types of listings used in Florida?

Answer 22

1. Open listing 2. Exclusive agency listing 3. Exclusive listing with right of sale

Question 23

Which type of listing can have more than one broker that lists the property?

Answer 23

An open listing

Question 24

Which two listings does the broker not receive a commission if the seller finds the buyer?

Answer 24

1. An open listing 2. An exclusive agency listing

Question 25

Which type of listing does the broker receive commission even if the seller finds the buyer?

Answer 25

Exclusive listing with the right of sale

Question 26

Which type of listing does the seller require a net amount in order to list with the broker?

Answer 26

A net listing

Question 27

Are option contracts unilateral or bilateral?

Answer 27

Unilateral

Question 28

Can a broker purchase an option contract and later sell it for profit?

Answer 28

Yes

Question 29

What is the definition of an option contract?

Answer 29

An option contract is an agreement to keep open for a specified period of time an offer to sell or lease real property

Question 30

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?

Answer 30

Both spouses

Question 31

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?

Answer 31

No

Question 32

What law is being broken if the seller does not give the HOA disclosure to the buyer?

Answer 32

Florida Statute 720

Question 33

What are the four things a seller is required to do if they are selling a house that was built before January 1, 1978?

Answer 33

1. 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

Question 34

Who is responsible to give the HOA disclosure to the buyer?

Answer 34

The owner/seller

Question 35

What is on the Homeowners Association Disclosure?

Answer 35

Restrictive covenants and special assessments

Question 36

What is the property tax disclosure for?

Answer 36

It warns the buyers not to rely on the seller’s current taxes to be their own

Question 37

Are we permitted to hold lotteries in Florida?

Answer 37

No

Question 38

Does bankruptcy terminate all contracts?

Answer 38

Yes