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282 Cards in this Set
- Front
- Back
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A person who for another and for compensation or other consider (or anticipation of compensation or other consideration) performs real estate services
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Broker |
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An individual who meets the requirements of a broker but who chooses to work (operate) in real estate under the direction (employ) of another broker
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Broker Associate |
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A policy of let the buyer beware (buyer is responsible for own knowledge in real estate transactions)
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Caveat Emptor |
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Anything of value or a valuable consideration, directly or indirectly paid, promised or expected to be paid or received |
Compensation |
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Process by which the record of a criminal conviction is destroyed or sealed after expiration of time
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Expungement |
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Written document issued by the DBPR that serves as prima facie evidence (valid on its face) that the person is licensed on the date shown |
License |
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A transactional agreement between Florida and another state that provides for the two states to recognize eachother's real estate prelicense education |
Mutual Recognition Agreement |
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Plea of no contest entered in a criminal court of law. The defendant does not admit or deny the charges, though a fine or sentence may be imposed by the court |
Nolo contendere |
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An unlicensed entity that sells, exchanges, or leases it's own property |
Owner-developer |
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Legal term used to refer to evidence that is good and sufficient on its face to establish a given fact or prove a case
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Prima Facie Evidence |
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Include any real estate activities involving compensation for performing the service for another
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Real Estate Services |
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A person who performs real estate services for compensation but who does so under the direction, control, and management of an active broker or owner-developer
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Sales associate |
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Governs organization structure
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Florida Statute Chapter 20 |
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Governs Real Estate Law |
Florida Statute Chapter 475 PART I |
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Governs Real Estate Appraisal |
Florida Statute Chapter 475 PART 2 |
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Governs Commercial Real Estate Sales Commission Lien Act |
Florida Statute Chapter 475 PART 3 |
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Governs Commercial real Estate Leasing Commission Lien Act |
Florida Statute Chapter 475 Part 4 |
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Governs regulation of licensed occupations and professions |
Florida Statute Chapter 455
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Governs the disciplinary procedure process
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Florida Statute Chapter 120 |
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Governs the rules of the FREC |
Florida Statute Chapter 61J2 |
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_____ is the introductory level; ___ are employed by and work under the direction and control of a broker or an owner-developer. __ are agents of their employer |
Sales Associate |
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____ require additional education and experience and passing the ___ license exam |
Broker License |
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____ Holds a broker's license but chooses to register and work in real estate under the direction of another broker |
Broker Associate
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_____ is an unlicensed entity that sells, exchanges, or leases its own property. In most cases you aren't getting your experience to become a broker in this |
Owner-developer |
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Governs HOA Disclosures |
Chapter 720 |
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How many years is an application valid? |
2 years from the day its received
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Why do you need to show your social security number when applying for a real estate license
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to check for child support |
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Mutual Recognition Agreements apply to ONLY
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non-residents licensed in other jurisdictions |
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How many question test and how much do you need to pass if you are in mutually recognized state to become licensed in Florida?
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40 question must get a grade of 75% of higher
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How many states have mutual reciprocity?
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8 |
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What two things exempt someone from the prelicense course requirement?
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Both of these people must hass the license exam |
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When can licensees begin working? |
when the DBPR website indicates that the license is active status under the employing broker or brokerage entity |
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Florida sales associates must complete the ______ hour post licensing course before _________ |
45 hours from the initial expiration of the initial sales associate license |
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If a sales associate fails to complete the post licensing requirement prior to the expiration date their license will become and will need to ____ to get their license back
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null and void. retake their course I and pass the state license exam |
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Florida attorneys who are also licensed real estate sales associates must or must not make their post licensing
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MUST |
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Individuals who have a degree in real estate must or must not complete the post license education requirement |
DO NOT HAVE TO
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To become a _____ they must complete course II with a passing score of at least 70 on the end of exam course |
Broker |
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a broker must have ____ months real estate experience during the _____ year period preceding becoming licensed as a broker |
24 months during 5 year period |
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Broker applicants who hold a Florida real estate sales associate's license must complete the ____ hour ______ course for sales associates before the initial sales associate's license expires to be eligible for a broker's license |
45 hour post licensing course |
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Broker applicant's who have received a four year degree in real estate are exempt from: |
Course II
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Florida brokers must complete the _______ ________ before the first renewal of their license |
60 hour post licensing course |
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The 60 hour broker post licensing course is broken up into: |
2 - 30 hour segments |
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If a broker fails to complete their post licensing course their license will become:
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null and void |
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A broker may request a ________ if they request it within ______ and completes a _______ continuing education course
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a sales associate license if they request within 6 months and complete 14 hour continuing education course |
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Continuing education requirements: |
require 14 hours of continuing education each subsequent licensure period following the initial license period |
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The only thing attorney's are not exempt from is |
post licensing education
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the only thing people with a real estate degree are not exempt from is
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continuing education |
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Real estate services |
A- Advertise Real estate services B- Buy A- Appraise R- Rent or provide rental info or lists S- sell A- auction L- lease E- exchange |
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A real estate license is required if:
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a person performs any real estate service for compensation or the implied intent to collection compensation, unless specifically exempt |
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Compensation includes:
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anything of value. Money in the form of salary, bonuses, commissions, and gratuities. Also can be dinners, flowers, wine, gift certificates and event tickets
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Property owners who sell, exchange or lease their own real property is |
exempt from needed their license |
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Part owners provided they do not receive a larger share of the profits than their proportional investment
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do not need their license |
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Business entities that sell, exchange or lease their own real property |
do not need their license |
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Salaried employees of business entities who sell, exchange, or lease real property for their employer provided they are not paid a commission or compensated on a transactional are: |
exempt from licensure |
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Chapter 475 exempts the following from real estate license (6 things)
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people who sell cemetery lots, rent lots in mobile home part or RV park, attorneys when in an attorney client relationship, CPA's, power of attorney, owners of time shares |
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Time period for DBPR to receive a request to review the state license exam
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21 days |
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Number of days to notify the DBPR if a licensee becomes a nonresident |
60 days |
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Salaried managers of condominium or cooperative units who prepare rental agreements with a duration of up to one year are exempt from real estate |
Up to one year
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Managers of condominiums or cooperatives who prepare lease agreements with a duration longer than one year period must be licensed
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more than one year |
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Time period aftger which the license application expires
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two years |
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time period after which the prelicense course expires
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two years |
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experience requirement for broker applicants obtained within preceding five year period |
Two years |
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Issued to a sales associate or broker associate employed by an owner-developer (real estate developer) who owns properties in the name of various entities and entitles the licensee to work for separate sales projects owned by the owner-developer
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Group license |
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status results when a license is not renewed at the end of the license period
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involuntary inactive |
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means to no longer exist |
null and void |
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powers of the FREC include the power to grant or deny license applications, to determine license law violations and to administer penalties |
quasi-judicial |
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powers of the FREC include the power to enact administrative rules and regulations and to interpret questions regarding the practice of real estate |
quasi-legislative |
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is the license status that results when a licensee has applied to the DBPR to be placed on inactive status |
Voluntary inactive |
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Occurs when a person no longer wants to engage in the real estate business, provided there is no investigation or discipline pending the licensee |
Voluntary relinquish |
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FREC consists of how many members? How many must be licensed?
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FREC has 7 members. 4 must be licensed for 5 years. one must be for only 2 years |
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How many FREC members are unlicensed?
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Two |
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Who appoints FREC commissioners? |
appointed by governor approved by senate |
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How many terms do FREC members have? |
four staggered terms, cannot service two consecutive terms |
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How much do FREC members make? |
$50 a day |
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At least one of the FREC members must be: |
60 years or older |
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Commision powers include 3 general areas:
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executive power to regular and enforce license law, quasi-legislative power to enact and revise admin rules, quasi-judicial power to grand or deny applications and administer penalties |
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max time a license can be suspended |
10 years
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DBPR is under and is governed by |
the executive branch of the governor and is governed by FL statute 20 |
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DBPR has authority to:
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investigate consumer complaints, issue subpoenas when conducting investigations, issue cease and desist orders and issue citations to licensed individuals |
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Division of real estate (DRE) is under |
DBPR and the administrative arm of FREC |
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The director of DRE is |
appointed by the secretary of DBPR and needs FREC approval |
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Who are the only people who can get multiple licenses? |
brokers |
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How many days do you have to notify the FREC regarding a change of business address? |
10 days |
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How many days do a sales associate, broker associate, or an instructor have to notify the FREC of a chance of employer |
Ten days |
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What is the grace period after discharge from military duty to renew license
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six months |
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what is the time period after involuntary inactive license becomes null and void |
2 years |
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occurs when a broker is in a relationship of trust and confidence with the broker as agent and the seller or buyer as principal |
fiduciary |
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the intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person |
fraud
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authorized by the principal to handle the affairs related to a business or trade, or to handle all the business at a certain location; for example, a property manager |
general agent |
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is the seller (or the buyer, but not both) in a single agent relationship; the principal authorizes the agent to act on the ____, behalf, while the principal is responsible for the actions of the agent
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principal |
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is a broker who represents either the buyer or the seller (but not both) and has a fiduciary relationship with the party represented
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single agent |
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is a broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but who does not represent either part in a fiduciary capacity or as a single agent |
transaction broker |
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deal honestly and fairly, account for all funds, use skill, care, and diligence in transaction, disclose all known facts that materially affect the VALUE of the residential property, present all offers and counteroffers, exercise limited confidentiality, provide any additional duties that are mutually agreed to |
transaction broker duties |
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works for either buyer or seller, has a fiduciary relationship, ____ disclosure notice must be made before, or at the time of entering into an agreement
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single agent relationship |
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Deal honestly and fairly, act SOLELY in the best interest of the principal, confidentiality, obedience, full disclosure, account for all funds, use skill and scare ,present all overs, disclose all known facts that material affect the value of property and that aren't readily observable
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single agent duties |
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deal honestly and fairly, disclose all known facts that materially affect the value of property, account for all funds |
no brokerage relationship duties |
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If a single agent wants to transition to a transaction broker they must
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get signature from both parties |
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this applies to nonresidential sales only, buyer and seller must each have 1million of assets, broker designates one sales associate to work with buyer as single agent and another to work with seller as single agent, buyer and seller must request arrangement, buyer and seller must sign disclosure notice
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designated sales associate |
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8 ways to terminate a brokerage relationship
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- fulfillment of brokerage relationship, mutual agreement, expiration of terms of the agreement, broker renouncing relationship by giving notice, principal or customer revokes by giving notice, death of either party, destruction or condemnation of property, brankrupcy or the principal of customer (courts will appoint a trustee) |
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4 elements for a cause of action for fraud
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the licensee made a misstatement or failed to disclose a material fact, the licensee either knew or should have known that the statement was not accurate or that undisclosed info should have been disclosed, the party to whom the statement was made relied on misstatement, the part whom the statement was made was damaged as a result |
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period required to retain brokerage relationship disclosures for all transactions that result in a written contract |
five years
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Active brokers are required to have an ____ an register with the ___ with the ____ |
office and register it with the DBPR |
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Brokerage offices must: |
be at least one enclosed room in a building of stationary construction |
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Brokers ___ must be kept in their ofice |
books, records, and real estate transcation files |
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brokers are NOT required by law to have |
telephone, desk, business checking account or an escrow account |
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if a broker's office is in their resident it must have
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an entrance signed displayed on the interior or exterior of room
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sales associates are or aren't able to open their own offices |
not allowed to open their own offices |
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a temporary shelter in a subdivision being sold by a broker is or is not a branch office if its intended only for the protection of customers and sales associates
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NOT |
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Branch office registrations are or are not transferrable
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NOT |
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Can a broker reopen a branch office in the same location during the same license period by requesting a reissue of branch office license? |
YES |
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Active real estate brokers must display an official entrance office sign witht he following:
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name of broker, trade name if any, words licensed or lic. real estate broker, name of business and name of at least one active broker, names of sales associates (if included) separate from broker's names and identified as sales associates or broker associates |
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Is advertising a real estate activity?
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yes |
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can sales associates advertise their own real estate services in their name?
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no |
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advertising must be done where ___ will know what that they are dealing with a licensee |
reasonable people |
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a blind advertisement is __ and is __
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ad that fails to disclose brokerage firm and is illegal |
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internet advertising must include |
point of contact info and have brokerage firms name adjacent to above or below point of contact info |
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if licensees include their personal name in an advertisement they must use their ____ as registered with DBPR
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last name
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yard signs, classified ads and promotional advertising must include name of: |
real estate brokerage firm |
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false advertising is a: |
second degree misdemeanor |
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licensees selling property by owner should: |
disclose to prospective buyers that they are licensed |
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if an escrow account is interest bearing the broker must get |
written permission of all interested parties and authorization from buyer seller to who is entitled the interest |
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Broker's escrow accounts are
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maintained at florida commercial banks, savings associations and credit unions |
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licensee who prepared or presented sales contract must indicate on the contract title company's |
name, or attorney's name, address and phone number |
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brokers may or may not commingle escrow deposits with business funds or personal funds |
MAY NOT |
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broker must: |
be signatory of broker's escrow account, reconcile account each month, review ands ign monthly reconciliation, allowed to place $1000 of personal funds in sales escrow account and $5000 of personal funds in property management escrow account |
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4 settlement procedures |
A- Arbitration (3rd party makes decision) L- Litigation (goes through court system) E- Escrow disbursement order (EDO) |
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Used when the broker does not have a financial claim to the disrupted escrow funds and deposits the funds with the court registry |
interpleader |
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when the broker believes that he or she is entitled to portion of disputed funds |
Declaratory judgement |
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Requesting an EDO |
FREC makes determination as to who is entitled the disputed funds, Applicable only if it's in broker's escrow account, broker must notify FREC in 10 business days |
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What disclose must rental lists give |
disclosure of refunds |
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if a rental list is in error how much refund is given? |
100 percent |
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if someone is unable to find a suitable rental how much refund is given from a rental list |
75 percent |
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Violation of a rental list is |
first degree misdemeanor |
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brokers must not violate |
antitrust laws by engaging in activities like price fixing and market allocation |
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broker may or may not pay a commission or referral fee to an unlicensed person |
NOT |
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Finders fee exemption |
a property management firm or an owner of an apartment can give a finders fee up to 50$ to an unlicensed person who is a tenant at the apartment complex |
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An unearned fee paid to a licensee associated with a real estate transaction for non-real estate services |
kickback |
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prior to payment and receipt of a kickback buyer and seller:
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must be fully informed
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kickbacks must not violate |
RESPA |
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what transactions aren't allowed for kickbacks |
title and casualty insurance transactions
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Licensees are prohibited from sharing a commission with ____
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an unlicensed individual
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a ___________ feature unlimited liability and no formal requirements to create
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sole proprietorship |
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a _________ each partner is responsible for all business debts |
general partnership |
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a _______ is created by filing agreement with the state, and features unlimited liability for general partners and limited liability for limited partners |
limited parternship |
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_______ is protection from personal liability for acts of another partner or employee |
limited liability parternship |
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_______ features separate legal entity from the owners and is formed by filing Articles of Incorporation and must include "company" or "incorporated" or abbreviation in name. Sales associate and broker associate may not be officers or directors of a brokerage coporation
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corporation |
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______ is protected from business debts
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limited liability company |
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a _____ partnership is a partnership that doesn't truly exist.
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Ostensible partnership or quasi partnership |
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Time period for sales associate to turn funds over to broker |
end of next business day |
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Time period for broker to deposit funds into escrow account |
end of third business day |
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Number of days to notify the FREC if the broker requested an EDO and the escrow dispute is either settled or goes to court before the EDO is issued |
10 business days |
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Number of days to replace broker of record |
14 CALENDAR days |
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Number of days to notify the FREC of conflicting demands or good faith doubt |
15 business days |
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Number of days to institute settlement procedure after receiving conflicting demands |
30 business days |
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Time period to preserve broker's business records |
five years |
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Failing to use the care a reasonable person would exercise |
culpable negligence |
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Administrative penalties that are imposed by FREC |
deny an application, letter or reprimand, probation |
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There is a fine of up to $____ per count or separate offense for Violating Chapter 475 or Chapter 455 |
$5000 and suspension for up to 10 years |
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FREC must report criminal violations to who? |
State attorney |
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Unlicensed practice of real estate for compensation is a felony of the _____ degree |
there is a $5000 fine and/or up to five years in jail |
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Falsifying a DBPR license application is a ____ degree felony
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third |
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A claim to the recovery fund is limited to ______ per transaction |
$50,000 |
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Claims to the recovery fund against ONE licensee must not exceed in total of _______ |
$150,000 |
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License is automatically ______upon payment from the recovery fund until the fund is reimbursed (including interest) |
suspended |
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Number of days to correct minor infraction listed in notice of non-compliance
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15 days |
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Number of days after which a final order becomes effective |
30 days |
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Time period to file an appeal |
30 days |
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Time period allowed to file a claim against recovery fund |
two years |
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to use entry or rumor of entry, of a protected class into a neighborhood to persuade owners to sell |
blockbusting |
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_______ prohibits any type of discrimination based on race in all real estate transactions (sale and rental) without exception
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Civil rights act of 1866 |
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is a protected class of people under the fair Housing Act, consisting of families with children younger than 18 and pregnant women
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familial status
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To deny loans or insurance coverage by a lender or insurer or presenting different terms or conditions for homes in certain neighborhoods
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redlining |
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Channeling protected-class homeseekers away from areas that are not mixed with that class into areas that are
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steering |
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Prohibits discrimination based on race, color, religion, or national origin, applies to public accommodations, applies to public, facilities operated by state or municipal governments
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Civil Rights Act of 1964 |
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_______ established protected class: race, color, religion, sex, national origin
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Civil Rights Act of 1968: The Fair Housing Act |
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________ expanded to protect classes: familial status, handicap status, no protection is given to individuals based on age, occupation, marital status or sexual orientation
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Fair Housing Amendment Act of 1988 |
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What is exempt from familial status protection under the Fair Housing Act providing one of the two situations exists: all units must be occupied by person 62 years of age or older and at least 80% of the units are occupied by one of more persons of 55 years of age or older |
certain housing for older persons |
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What is HUD
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Housing and Urban Development
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Exists when the tenant, after rightfully being in possession of the rented property, continues possession after the tenant's right has ended; a holdover tenant |
Tenancy at sufferance |
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Is a leasehold in which the tenant holds possession of the premises with the owner's permission but without a fixed term |
Tenancy at will
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Is an estate created by a husband and wife who take title together at the same time
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Tenancy by the entireties |
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____ Refers to the surface of the earth and items attached by nature |
land |
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____ includes land and all human-made improvements
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real estate |
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___ includes all real estate plus the legal bundle of rights
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real property |
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physical components (rights) of land: |
surface, subsurface, air |
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Surface rights include: _____ rights |
water rights |
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____ is associated with land abutting moving water, such as the banks of a river or stream |
riparian |
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____ is associated with land abutting tidal bodies of water, such as an ocean, sea, or lake |
littoral |
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_____ is the process of land build-up from waterborne rock, sand and soil |
accretion |
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___ is the resulting new deposits of land caused by accretion |
alluvion |
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__ is the gradual loss of land due to natural forces |
erosion |
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____ is the gradual receding of water, uncovering additional land |
reliction |
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How does real property become personal property |
act of severance |
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______ Consists of items having a limited life that are easily movable from one place to another
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personal property |
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______ are personal property but have been permanently attached to and made part of real estate |
Fixtures |
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Legal tests to decide if an item is a fixture (IRMA)
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Intent of the parties, relationship of the parties, method of degree of attachment, adaption of the item |
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Bundle of Rights for real property ownership DEEPC / DUPE |
Disposition (right to sell or give away), Enjoyment (right of quiet enjoyment), Exclusion (right of no trespass), Possession (right to occupy), Control (right to control) |
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_____estates are for an indefinite length (unknown duration) |
freehold estates |
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______ estates (nonfreehold estates) are for a fixed term (known duration)
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Leasehold estates |
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_____ estate: largest bundle of legal rights, highest type of real property recognized by law
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Fee simple estate
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____ life estate: can be created by the person who holds title to real property. Created by the grantor to transfer the freehold estate to an individual for the individual's lifetime.
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Conventional Life Estate |
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______ life estates: are created by law |
Legal life estates |
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Estate in ______ : occurs when property returns to the grantor (previous owner)
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reversion |
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_____ Estate: occurs when property goes to a third party known as a remainderman |
remainder estate |
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______ law provides certain types of protection and benefits to homeowners regarding their permanent residence |
homestead |
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________: If a married person dies and the family homestead was titled in the deceased person's name only, by operation of law, the surviving spouse receives a legal life estate and the children (lineal descendants) receive a remainder estate. If no children, surviving spouse receives a fee simple estate in survivor name only (in severalty) |
Protection of the family |
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______ occurs when title to property is held by one person; an estate in severalty
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sole ownership |
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_____ means title to real property is shared by two or more persons (concurrent ownership). Tenancy in common, joint tenancy, tenancy by the entireties
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Co-ownership |
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Features of tenancy in common |
two or more people, undivided possession, interest equal or unequal percentage, take title at same time or at different times, heirs inherit (no right of survivorship) |
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PITTS (each joint tenant has undivided possession, each joint tenant has equal interest, joint tenants take title at the same time, joint tenants are all named on the same title, must expressly state right of survivorship
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Features of joint tenancy |
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Features of tenancy by the entireties |
husband and wife take tile together, undivided possession, right of survivorship, same title, same time, only available to husband and wife |
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______ a multifamily building owned by a corporation. purchase share of stock in corporation, |
cooperative |
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Time share ownership - _____ ownership: is a fee simple ownership and gives you a deed
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Interval ownership
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time share ownership - ____ is a leasehold interest, long term lease |
right to use |
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time to cancel resale cooperative or condo contract
|
three business days |
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notice required for week to week tenancy at will |
seven days |
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notice to cancel time share contract |
ten days |
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notice required to cancel month to month tenancy at will |
15 days |
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notice to cancel cooperative or condo contract with developer |
15 days |
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The act of transferring ownership, title or an interest in real property from one person to another
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alienation |
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Voluntary ______ is with the owner's control and content through will or deed
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voluntary alienation |
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Involuntary _____ is without control and consent of the owner |
Involuntary alientation |
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to die without a will but you have heirs |
descent (intestate) |
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If you have no will or heirs |
escheat to the state |
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Seized by another |
adverse possession |
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Right o take property for public purchase |
Eminent domain |
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____ notice is direct knowledge acquired in the course of a transaction |
actual notice |
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____ notice is accomplished by recording a document in public records |
Constructive notice |
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Elements of a deed CEEDING |
consideration (valuable or good), execution (signed by a competent grantor and two witnesses), description of the property, delivery and acceptance (voluntary), interest in being conveyed (habendum clause), names of the grantee and grantor, granting clause and other clauses |
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Clauses in a deed- includes premises and words of conveyance
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granting |
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clauses in a deed- type of estate conveyed |
habendum |
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clauses in a deed- grantor has right to convey |
seisin |
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Clauses in a deed - property is free from liens and other encumbrances
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covenant against encumbrances |
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General warranty deed includes three special covenants: |
quiet enjoyment, further assurance, warranty forever |
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Government restrictions on ownership (PET) |
police power (zoning building and health codes), eminent domain (take for benefit of public), taxation |
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Right to use an order's land for a specific purpose |
easement |
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A lease where tenant pays a fixed rent; landlord pays expenses associated with the property |
gross lease |
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Lease where tenant pays fixed rent plus property costs |
net lease |
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Lease where tenant pays rent based on gross sales |
percentage lease |
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Lease where tenant pays specified rent increases based on a pre-determined index at set future dates |
variable lease |
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Lease where tenant leases land only and erects a building
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ground lease
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_______ liens are not restricted to one property but may affect all properties of a debtor |
general liens |
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____ liens apply only to certain specific property |
specific liens |
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lien ___ determines the order in which the liens will be paid off if the property must be sold |
lien priority |
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Specific liens include: |
property tax and special assessment liens, mortgage lien pledges, vendor's lien, construction lien |
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Real estate (property) tax liens, special assessment liens and federal estate tax liens are _____ liens meaning they take priority over all other liens |
superior |
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Number of days to file a construction lien (retroactive to the first day of work) |
90 days |
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Number of years of hostile possession to claim adverse possession
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seven years |
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Minimum time period of uninterrupted use to create an easement by prescription
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20 years |
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4 types of contracts real estate licensees may prepare
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listing agreement, buyer broker agreement, sale and purchase contract, option contract |
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Licensees may NOT draw:
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deeds, mortgages, promissory notes, leases |
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a valid contract has four essentials: |
competent parties, offer and acceptance (mutual assent), legal purpose, and consideration |
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Exception to the "in writing" provision in the statute of frauds
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when the buyer has paid part of the purchase price and then has either taken possession of the property or made some improvements to the property |
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Statute of limitations |
oral (parol) contracts: 4 years |
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_____ are agreements between two or more parties to do or not to do certain things, supported by sufficient consideration
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contracts (may be written or oral) |
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What are the two types of consideration? |
Valuable (money), and good (the promises each party agrees to) |
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Elements of a valid and enforceable real estate sale contract (COLIC) |
competent parties, offer and acceptance (meeting of the minds), legal purpose, in writing and signed (statute of frauds), consideration (valuable or good) |
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real estate contracts are NOT required to be:
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witnessed or notarized nor do they require a deposit |
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a formal contract is
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written under seal |
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an informal (parol) contract |
is oral |
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Bilacteral contracts obligate _____ |
both parties ( sale contract) |
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unilateral contract obligate ____ |
only one party (option contract) |
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______ contract exists when all of the terms and conditions have been spelled out and a meeting of the minds is reached
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express |
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___ contract exists when some of the conditions may be reasonably implied
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implied |
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______ contracts are not yet fully performed
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executory |
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_____ contracts have been fully performed |
executed |
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Ways to terminate an offer (WILD CARD) |
withdrawal by offeror, insanity, lapse of time, death, counteroffer, acceptance, rejection, destruction of property |
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letters and telegraphic communication can or cannot be part of a valid sale contract |
can |
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person making an offer |
offeror |
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person receiving offer
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offeree |
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offerors and offerees do or do not switch rolls when their is a counter offer? |
they do switch roles |
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a contract is created when three events occur
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offer is made by the offeror, offer is accepted by the offeree, acceptance is communicated back to the offeror (if the statute of frauds is applicable, the acceptance must be communicated in writing) |
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______ requires that certain contract must be in writing and signed to be enforceable (contracts conveying an interest in real property) |
statute of frauds |
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breach of contract - specific performance
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court order the other party to perform according to the terms of the contract |
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breach of contract - liquidated damages
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amount of damages stipulated in the contract (usually the earnest money deposit) |
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breach of contract - compensatory damages |
involves a lawsuit to recover the actual amount of the monetary loss (unliquidated damages) |
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____ is the amount specified in the contract (usually the earnest money deposit) to be paid to the seller in case of default by the buyer |
liquidated damages |
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contract disclosures |
material defects disclosure, radon gas disclosure, lead-based paint disclosure, energy efficient brochure, homeowners association disclosure, property tax disclosure, building code violation disclosure |
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Time period sellers must allow homebuyers to conduct an inspection for the presence of lead-based paint |
ten days |
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time period after title transfer, regarding a building code violation, to forward to the code enforcement agency the name and address of the new owner and a copy of the disclosures given to the buyer |
five days |
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time period to enforce oral contracts under the statute of limiations
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four years |
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time period to enforce written contracts under the statute of limitations
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five years |
