Unit 11 Key Terms Flashcards
assignment
Written instrument that serves to transfer the rights or interests of one person to another.
attorney-in-fact
One who is authorized to perform certain acts for another under a power of attorney.
bilateral contract
An agreement wherin both parties are legally obligated to each other to perform.
buyer brokerage agreement
An employment contract with a purchaser.
community development district (CDD)
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. CDD’s provide an alternative way to fund and construct capital infrastructure to service projected growth.
competent
A party to a contract who possesses the legal capacity to enter into a binding contract.
contract
An agreement between two or more competent parties to do, or not do, some legal act for a legal consideration.
enforceable contract
A legally binding contract that the law will recognize.
exclusive-agency listing
Employment contract given to one real estate broker as the sole agent for the sale of an owner’s property.
exclusive-right-of-sale listing
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.
fraud
The intent to misrepresent a material fact or to deceive in order to gain an unfair advantage or to harm another person.
good consideration
A promise that cannot be measure in terms of money, such as love and affection.
homeowners association (HOA)
A Florida corporation responsible for the operation of a community or a mobile home subdivision in which the voting membership is made up of parcel owners and membership in the HOA is a mandatory condition of parcel ownership. An HOA is authorized to impose assessments that, if unpaid, may become a lien on the parcel.
liquidated damages
The amount of valuable consideration specified in an agreement as a penalty for default. see also damages.
meeting of the minds
The point at which tow people, thinking of the same thing, reach an agreement through an offer and acceptance.
misrepresentation
A false or misleading statement of a material fact; concealment of a material fact.
net listing
An agreement or contract to sell or rent a property for a specified minimum net amount for the owner.
novation
The substitution of a new party and/or new terms to an existing obligation.
open listing
An employment contract given to any number of brokers who work simultaneously to sell the owner’s property.
option contract
A right or privilege to purchase or lease real property at a specified price during a designated period based on a sufficient consideration.
parol contract
An agreement that is not in writing.
procuring cause
The person whose efforts are the cause of an executed sale contract, regardless of who actually writes the contract.
statute of frauds
An act requiring that certain real estate instruments and contracts affecting title to real property be in writing in order to be enforceable.
statute of limitations
At act that prescribes specific time restrictions for enforcement of rights by action of law.
unenforceable contract
A contract that was valid when made but either cannot be proved or will not be upheld by a court.
