Unit 11: Real Estate Contracts Flashcards
(19 cards)
Preparation of contracts - 4 Contracts that a licensee may prepare
A Real Estate Licensee has the authority to prepare the following contracts; Listing Agreement Buyer Brokerage Agreement Purchase & Sales Contract Option Contract
Real Estate Licensee may not draft leases. However, licensees may fill in the blanks on residential lease instruments for lease periods that do not exceed ONE Year.
Essential elements of a valid contract
The four legal elements of a valid contract are;
Competent Parties (Contractual Capacity of the Parties)
Mutual Assent (Offer & Acceptance)
Legal Purpose (Legality of the object)
Consideration (which is not the Earnest Money Deposit)
Statute of Frauds
The Statute of Frauds requires that contracts conveying an interest in real property and all contracts that are not performed within one year from the date they become effective must be in writing and signed to be enforacable.
Documents covered by the Statute of Frauds
complete
Statute of Limitations
complete
Enforceable Contracts - Criteria
An enforceable contract is a contract that the courts will recognize as legally binding.
Identify an enforceable contract
Contracts covered by Florida’s statute of frauds include the following;
Purchase & Sale Contracts
Option Contracts
Deeds and mortgage instruments
Lease agreements for a term longer than one year.
Listing agreements for a term longer than one year.
Buyer representation agreements for a term longer than one year.
Unilateral Contract
A unilateral contract obligates only ONE party to an agreement. Uni = One. One person makes an obligation to perform without receiving in return any promise of performance from the other party/s. Like offering a reward for finding my lost dog. I have entered into a Unilateral contract.
Executory Contract
An executory contract is an agreement between parties that involves promises to be completed at a future date. A purchase and sale real estate contract, between the time of signing the contract and the time that the title is conveyed from the grantor to the grantee, is an executory contract because the parties have not fully performed.
Methods to Terminate an offer
complete
Remedies for breach
complete
Compensatory Damages
complete
Types of Listings
Complete
Net Listing
Complete
Features of Listing Types
complete
Power of Attorney
complete
Lead-based paint disclosure requirements
complete
HOA Disclosure
Complete
Conditions that give the buyer the right to cancel a contract
complete
