Unit 11 (12%)

Front 1

Real estate brokers and sales associates

Back 1

Who may not prepare deeds, mortgages, promissory notes, or most other legal documents?

Front 2

They lose their license, regardless of the whether they receive compensation.

Back 2

What happens to licensees who prepare deeds, mortgages, promissory notes, or most of the legal documents?

Front 3

Valid contract

Back 3

An agreement binding on both parties and legally enforceable against all parties to the agreement.

Front 4

Practicing law

Back 4

What is it called to draft the wording of legal documents or legal instruments for others?

Front 6

- Contractual capacity of the parties (competent parties)

- Offer and acceptance (mutual assent)

- Legality of object (legal purpose)

- Consideration

Back 6

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

Front 7

Competent

Back 7

A party to a contract who possesses the legal capacity to enter into a binding contract.

Front 8

Meeting of the minds

Back 8

The point when two people, thinking of the same thing, reaching agreement through an offer and acceptance.

Front 9

Consideration

Back 9

Whatever is given in exchange for something else.

Front 10

Consideration

Back 10

The obligation that each party makes to the other to make the contract enforceable.

Front 11

Sufficient consideration

Back 11

Mutual promises to do or not to do some specific act, even though the benefit or sacrifice may not be equal.

Front 12

Earnest money

Back 12

What is another word for good-faith deposit?

Front 13

Consideration

Back 13

A common misconception is that the good-faith deposit (earnest money) and a real estate sale contract is the _______________.

Front 14

Good-faith deposit

Back 14

What is made by a buyer to assure the seller that the buyer is serious about the transaction and the buyer intends to purchase the property?

Front 15

Valuable consideration and good consideration

Back 15

What are two types of consideration?

Front 16

Valuable consideration

Back 16

The money or a promise of something that can be measured in terms of money.

Front 17

Good consideration

Back 17

A promise that cannot be measured in terms of money, such as love and affection.

Front 18

No

Back 18

When something is exchanged, does it need to have the same measurable value?

Front 19

Statute of frauds

Back 19

An act requiring that certain real estate instruments and contracts affecting title to real property be in writing in order to be enforceable.

Front 20

Enforceable contract

Back 20

A legally binding contract that the law will recognize.

Front 21

- Purchase and 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

Back 21

What are some contracts covered by Florida statute of frauds?

Front 22

Statute of limitations

Back 22

An act that prescribes specific time restrictions for enforcement of rights by action of law.

Front 23

Statute of limitations

Back 23

It protects people from being compelled to perform or otherwise be sued after a period of time that has expired.

Front 24

Five years

Back 24

What is the time period for a written contract?

Front 25

Four years

Back 25

What is the time period for an oral contract?

Front 26

Parol contract

Back 26

Another term known for an oral contract.

Front 27

in writing and signed.

Back 27

In order for a real estate sale contract to be valid and enforceable it must be ____________________________________.

Front 28

Void contract

Back 28

An agreement that does not meet all the required elements of a valid contract and has no legal effect.

Front 29

Voidable contract

Back 29

A contract that because of the manner or method in which it was brought about, one of the parties is allowed to avoid contractual duties.

Front 30

Unenforceable contract

Back 30

A contract that was valid when made but either cannot be proved or will not be upheld by a court.

Front 31

Bilateral contract

Back 31

An agreement wherein both parties are legally obligated to each other to perform.

Front 32

Unilateral contract

Back 32

And agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party.

Front 33

Executory contract

Back 33

An agreement containing some act or condition that remains to be completed.

Front 34

Executed contract

Back 34

An agreement in which the terms have been fully performed by all parties; a signed document.

Front 35

Counteroffer

Back 35

A rejection of the original offer by proposing a new offer, thereby terminating the original offer.

Front 36

Four

Back 36

How many legal remedies for breach of a contract?

Front 37

Specific performance, liquidated damages, rescission, and compensatory damages.

Back 37

What are the four legal remedies for breach of a contract?

Front 38

Liquidated damages

Back 38

The amount of valuable consideration specified in an agreement as a penalty for default.

Front 39

Assignment

Back 39

Written instrument that serves to transfer the rights or interest of one person to another.

Front 40

Specific performance

Back 40

Court orders the other party to perform according to the terms of the contract.

Front 41

Rescission

Back 41

The contract is canceled and the parties are restored to their original positions.

Front 42

Compensatory damages

Back 42

This involves a lawsuit to recover the actual amount of the monetary loss to either party (also called unliquidated damages).

Front 43

Liquidated damages

Back 43

Amount of damages (usually the earnest money deposits) stipulated in the contract. If the buyer breaches the contract, typically the seller claims the earnest money deposit as this.

Front 44

Novation

Back 44

The substitution of a new party and/or new terms to an existing obligation.

Front 45

Open listing

Back 45

An employment contract given to any number of brokers who work simultaneously to sell the owner’s property.

Front 46

Exclusive-agency listing

Back 46

Employment contract given to one real estate broker as the sole agent for the sale of an owner’s property.

Front 47

Exclusive-right-of-sale listing

Back 47

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.

Front 48

Net listing

Back 48

An agreement or contract to sell or rent a property for a specified minimum net amount for the owner.

Front 49

Buyer brokerage agreement

Back 49

And employment contract with the purchaser.

Front 50

Procuring cause

Back 50

The person whose efforts are the cause of an executed sale contract, regardless of who actually writes the contract.

Front 51

Option contract

Back 51

A right or a privilege to purchase or lease real property at a specified price during a designated period based on a sufficient consideration.

Front 52

Vendor

Back 52

The seller of real property in an agreement of sale.

Front 53

Vendee

Back 53

The buyer or purchaser of real property under an agreement of sale.

Front 54

Attorney-in-fact

Back 54

One who is authorized to perform certain acts for another under a power of attorney.

Front 55

General power of attorney

Back 55

Authorized the attorney-in-fact to act generally for the principal in all matters.

Front 56

Special power of attorney

Back 56

Limits the attorney-in-fact to one specified area of activity or one special act, such as signing a contract for sale or purchasing a designated property.