Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
50 Cards in this Set
- Front
- Back
|
An owner must be given a copy of a written listing within how many hours? |
24 hrs |
|
|
The type of listing that gives the broker the greatest degree of protection is the __________________listing |
Exclusive right of sale |
|
|
Damages specified in a contact are _______________________ damages |
Liquidated |
|
|
a contract wholly in writing may be enforced for __________________________ years, as specified by the _______________________ |
5 years , statute of limitations |
|
|
Oral real estate sales contracts are considered to be _______________, but are not _________________ |
Valid but are not enforceable |
|
|
Valuable consideration in a contract may consist of ______________________property,___________________________ property or _______________________- |
Real property , personal property , enforceable promises |
|
|
Which of the following is an example of a unilateral contract? (a) Purchase and sale contract (b) Contract for deed (c) Open listing contract (d) Oral contract |
(c) Open listing contract |
|
|
3) If an owner revokes an exclusive right of sale listing and sells the property during the remaining time the listing would have been in effect, what is the broker entitled to? (a) A full commission (b) Bring a suit for damages (c) Write off the loss on their income taxes (d) Revoke the listing contract |
(d) Revoke the listing contract
|
|
|
Which of the following terms refers to a type of contract where all terms and conditions are NOT fully expressed? (a) Implied (b) Bilateral (c) Parol (d) Executory |
(a) Implied
|
|
|
What are the required elements of all valid contracts? (a) Legal subject, competent parties, legal age, and offer (b) Offer, acceptance, legal age, and legal subject (c) Legal subject, agreement, consideration, and two or more competent parties (d) Meeting of minds, legal age, offer, and competent parties |
(c) Legal subject, agreement, consideration, and two or more competent parties
|
|
|
To which of the following does the phrase "meeting of the minds" refer? a) Offer and acceptance (b) Consideration (c) Legal subject (d) Two or more parties |
a) Offer and acceptance
|
|
|
Which of the following best describes a contract? (a) A written instrument (b) Legally binding (c) Void unless accompanied by earnest money (d) Always bilateral |
(b) Legally binding
|
|
|
What is the term used to describe the party who receives an offer? (a) Offeree (b) Offeror (c) Optionor (d) Optionee |
(a) Offeree
|
|
|
Which of the following terms best describes a contract in which all of the terms and conditions have been fully performed? (a) Executory (b) Bilateral (c) Unilateral (d) Executed |
(d) Executed
|
|
|
Which statute requires a purchase and sale contract to be in writing to be enforceable? (a) F.S. 475 (b) F.S. 120 (c) Statute of Limitations (d) Statute of Frauds |
(d) Statute of Frauds
|
|
|
What is the term used to describe the consideration given by a buyer to indicate serious intent to buy a property? (a) An earnest money deposit (b) A check deposit (c) Legal tender (d) A boot deposit |
(a) An earnest money deposit
|
|
|
All of the following may terminate an offer, EXCEPT: (a) Expiration of a reasonable or specified time period (b) The death of the offeror (c) A counteroffer (d) A failure to obtain a binder deposit |
(d) A failure to obtain a binder deposit
|
|
|
Which of the following establishes the time period for enforcement of a contract? (a) Statute of Frauds (b) Statute of Limitations (c) Real estate license law (d) State courts |
(b) Statute of Limitations
|
|
|
A buyer negotiates a contract to purchase property, takes possession and pays the property purchase price in installments, but does not receive the legal title until the full purchase price has been paid. What is this agreement called? (a) An obvious attempt to defraud the buyer (b) A lease-option (c) A violation of the Statute of Frauds (d) An installment contract, contract for deed, or land contract |
(d) An installment contract, contract for deed, or land contract
|
|
|
A real estate licensee is legally allowed to prepare all of the following documents, EXCEPT: (a) Purchase and sale contract (b) Listing (c) Lease (d) Option |
(c) Lease
|
|
|
Which of the following statements is correct regarding an option contract? (a) It requires the buyer to buy at a specific price for a specific time. (b) It is binding upon the buyer. (c) It is a bilateral contract. (d) It gives a buyer the right to purchase for a specified time at a specified price. |
(d) It gives a buyer the right to purchase for a specified time at a specified price.
|
|
|
What is the legal term that is used to designate the transfer of rights in a contract from one party to another? (a) Revocation (b) Assignment (c) Renunciation (d) Subordination |
(b) Assignment
|
|
|
What type of contract exists when the court determines that a contract existed due to the actions of the parties? (a) Formal contract (b) Oral contract (c) Parol contract (d) Implied contract |
(d) Implied contract
|
|
|
Which of the following is an essential element of a valid and enforceable real estate sales contract? (a) At least one party must sign the agreement. (b) Offer and acceptance must be communicated by each party to the other. (c) The document must be prepared by an attorney. (d) The document must be under seal. |
(b) Offer and acceptance must be communicated by each party to the other.
|
|
|
Which statute specifies the time limits for enforcement of contracts? (a) Statute of Frauds (b) Statute of Enforcement (c) Ch. 475, Florida Statutes (d) Statute of Limitations |
(d) Statute of Limitations |
|
|
A seller wishes to net $140,000 from the sale of a property. Closing costs are estimated to be $3,600, and the broker will receive a 7% commission. What sales price will pay the expenses and meet the seller's net requirement? (a) $150,538 (b) $153,400 (c) $154,138 (d) $154,409 |
(d) $154,409 |
|
|
A buyer and seller entered into a Purchase and Sale Agreement. The buyer chose not to close and defaulted on the agreement. The seller claimed the escrow deposit. What type of damages can be sought? (a) Liquidated damages to the buyer (b) Unliquidated damages to the buyer (c) Liquidated damages to the seller (d) Unliquidated damages to the seller |
(c) Liquidated damages to the seller
|
|
|
Which of the following is correct regarding the "as is" provision in a sales contract? (a) Since the buyer has agreed to the "as is" provision, it is "buyer beware" because the seller does not have to disclose any defects. (b) The seller is still required to disclose all known defects that may materially affect the value of the property. (c) The "as is" provision helps to protect the broker from liability. (d) The buyer is required to have the property inspected, to ensure that there are no defects. |
(b) The seller is still required to disclose all known defects that may materially affect the value of the property. |
|
|
A buyer and seller agreed to terms and entered into a Purchase and Sale Agreement. The buyer lost this job and decided not to close on the property. The seller claimed the escrow deposit. In this case, what is the escrow deposit is considered to be? (a) Liquidated damages (b) Unliquidated damages (c) Eligible for reimbursement from the Recovery Fund (d) Compensatory damages |
(a) Liquidated damages |
|
|
Which of the following statements is correct regarding the Statute of Frauds? (a) It requires all licensees to receive training in anti-fraud measures. (b) It requires certain contracts to be in written form to be enforceable in court. (c) It describes the time limit for the enforceability of written and oral contracts. (d) It is enforced by the Florida Real Estate Commission and the Department of Business and Professional Regulation. |
(b) It requires certain contracts to be in written form to be enforceable in court. |
|
|
An option contract is a unilateral contract that is binding upon which party? (a) Buyer (b) Grantee (c) Optionor (d) Optionee |
(c) Optionor
|
|
|
Which of the following would be a valid remedy for breach of a purchase and sale contract? (a) Sue for damages (b) File an Escrow Disbursement Order (c) Make a claim on the Recovery Fund (d) File a complaint with FREC against the licensee |
(a) Sue for damages |
|
|
Offers may be terminated by all of the following, EXCEPT: (a) Acceptance (b) Rejection (c) Withdrawal (d) Breach |
(d) Breach (breaches are when contracts are terminated, not offers) Offers terminated WILD CARD Contract terminated BRRLAP |
|
|
Which of the following list of actions contain valid ways that a contract could be terminated? (a) Performance, Rejection of the offer, or Renunciation (b) Breach, Performance, or Lapse of time (c) Assignment, Abandonment, or Breach (d) Consideration, Performance, or Revocation |
(b) Breach, Performance, or Lapse of time
|
|
|
What does an agreed consist of? |
AN offer and acceptance, or meeting of the minds. |
|
|
What are the elements of a valid and enforceable real estate sales contract |
COLIC competent parties offer and acceptance legality of the subject in writing consideration |
|
|
What is the Statute of frauds? |
Provides protection against fraud. it requires a contract for the transfer of a right or interest in land to be in writing in order to be enforceable |
|
|
Implied contract: |
exsits when some or all of the terms and conditions can be assumed by the nature of the agreement or the words and actions of the parties |
|
|
In which circumstance is a broker’s commission subject to forfeiture? (a) The broker has an oral listing contract. (b) The broker fails to obtain witnesses to a real estate sales contract. (c) The broker performs according to the employment contract. (d) The broker violates a fiduciary duty. |
(d) The broker violates a fiduciary duty. |
|
|
Formal contract: |
Is a written contract that contains all the elements of a valid contract (COLIC) and may be recorded in the public record |
|
|
Oral contracts are also known as ___________-- |
parol contracts |
|
|
What are the ways an offer can be terminated? |
WILDCARD Withdrawal Insanity Lapse of time Death of either party Counteroffer acceptance rejection destruction of the property |
|
|
What are the way a contract can be terminated? |
BBRLAP Breach Renunciation Revocation Lapse of time Abandonment Performance |
|
|
What is a breach of contract? |
If a party to a contract fails to meet the obligations or perform as agreed, the injured party can seek relief in court |
|
|
What are the 3 remedies for a breach of contract? |
Suit for cancellation (rescission) Suit for specific performance Suit for damages |
|
|
What are liquidated damages? |
damages that are specified and agreed upon in the contract. the parties have agree to the penalty to be imposed in the event of a breach by either part. This usually involves the seller retaining the deposit in the event of a buyer default. |
|
|
what is an exclusive right of sale listing? |
owner promises to pay a commission to the broker who was employed under the exclusive right of sale contract. BEST LISTING FOR BROKER |
|
|
What is a net listing? |
any of the listings previously discussed can be structured as a net listing. |
|
|
Calculating owners required net |
owners required net $+ estimated closing costs$ divide that by 100-commission rate % |
|
|
an ____________________contract is the right to buy a property during a specified period-of-time, at a specified price. unilateral contract
|
OPTION CONTRACT |
