Real estate contracts (overview) Flashcards
(21 cards)
What does a contract define?
A contract defines the parties’ legal relationship and spells out each party’s rights and duties.
What underlies every contract?
The promise.
What is considered to be the practice of law?
When you draft legal instruments for others.
A real estate licensee can assist buyers and sellers with which four types of contracts?
- listing agreement
- buyer brokerage agreement
- sale & purchase contract
- option contract
What is a listing agreement?
An employment contract between a broker and a seller.
What is a buyer brokerage agreement?
An employment contract between a broker and a buyer.
What is a sale and purchase contract?
May be prepared if the licensee acts as an agent or facilitator for contracting party.
What is an option contract?
An agreement between the property owner and a potential buyer to keep open for a specified period an offer to sell or lease the property.
Licensees can ____ on Florida Supreme Court preapproved residential lease instruments for lease periods that do not exceed ____ _____
fill in the blanks; one year
What is the requirement for the capacity and age of all parties in a contract?
All parties must be competent and of legal age.
Who makes the offer in a contract?
The offeror.
the “or” gives; the “ee” receeeves
Who accepts the offer in a contract?
The offeree.
the “or” gives; the “ee” receeeves
What is a ‘meeting of the minds’ for a contract?
There needs to be a mutual understanding.
What is ‘consideration’?
Consideration is a thing of value given in exchange for some other value.
What are the two types of consideration?
- valuable (money)
- good (the promise between parties)
Do contracts need to be in writing and signed to be enforceable?
Yes.
Which contracts are covered by Florida’s statute of frauds?
- purchase & sale contracts
- option contracts
- deeds & mortgage instruments
- lease agreements for longer than one year
- listing agreements for longer than one year
- buyer representations agreements for longer than one year
What is the statute of limitations?
Period of time, set by statute, during which the terms of a contract may be enforced.
What is the statute of limitations for written contracts?
5 years.
What is the statute of limitations for oral (parol) contracts?
4 years.
What does the word ‘statute’ mean?
Formal written law enacted by a legislative body.
