Florida Real Estate Chapter 11 Real Estate Contracts

Front 1

assignment

Back 1

refers to a transfer of rights and duties under a contract

Front 2

bilateral contract

Back 2

obligates both parties to perform in accordance with the terms of the contract.

Front 3

buyer brokerage agreement

Back 3

an employment contract with a buyer

Front 4

competent

Back 4

parties have the legal capacity to contract, no mental defects and are of legal age to contract.

Front 5

contract

Back 5

an agreement between two or more parties to do a legal act for a consideration, which creates certain rights and obligations.

Front 6

enforceable contract

Back 6

a legally binding contract that the law will recognize.

Front 7

exclusive-agency listing

Back 7

a listing given to one broker, but the seller reserves the right to sell the property without paying a commission.

Front 8

exclusive-right-of-sale listing

Back 8

a listing given to one broker who is assured of a commission no matter who sells (best from a broker's standpoint)

Front 9

good consideration

Back 9

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

Front 10

liquidated damages

Back 10

the amount specified in the contract (usually the earnest money deposit) to be paid to the seller in case of default by the buyer.

Front 11

meeting of the minds

Back 11

reaching an agreement on all terms in a contract.

Front 12

mutual assent

Back 12

the making and acceptance of an offer (agreement).

Front 13

net listing

Back 13

created when a seller agrees to sell a property for a stated acceptable minimum amount.

Front 14

novation

Back 14

the substitution of a new party for the original one.

Front 15

open listing

Back 15

a listing given to any number of brokers (least preferred by brokers).

Front 16

option contract

Back 16

a unilateral contract (only optionor must perform) to keep open for a specified period of time an offer to sell or lease real property.

Front 17

parol contract

Back 17

an oral agreement

Front 18

procuring cause

Back 18

the chain of events that results in a sale.

Front 19

statute of frauds

Back 19

requires that certain contracts must be in writing and signed to be enforceable (contracts conveying an interest in real property).

Front 20

power of attorney

Back 20

a written legal document designating some other person as an attorney-in-fact; authorized to perform certain acts for another.

Front 21

statute of limitations

Back 21

designates the period of time during which the terms of a contract may be enforced.

Front 22

unenforceable

Back 22

a contract would not stand up in a court of law because it does not meet the requirements of the statute of frauds or it runs beyond the statute of limitations.

Front 23

unilateral contract

Back 23

obligates only one party to perform

Front 24

COLIC

competent parties, offer and acceptance,

legal purpose, In writing and signed,

consideration

Back 24

5 elements of a valid and enforceable real estate sale contract

Front 25

Valuable consideration

Back 25

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

Front 26

Vendee

Back 26

the buyer, also called ________________.

Front 27

Vendor

Back 27

the seller, also called _______________.

Front 28

void

Back 28

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

Front 29

voidable

Back 29

contract allows one party to avoid contractual duties, such as when one party is a minor or a party is mentally incompetent.

Front 30

Listing agreement

Back 30

a broker's employment contract with seller

Front 31

Buyer brokerage agreement

Back 31

an employment contract with buyer

Front 32

sale and purchase contract

Back 32

may be prepared by the sales associate if the licensee acts as an agent or facilitator for contracting party.

Front 33

deeds, mortgages, promissary notes, and

leases

Back 33

Licensees may NOT draw which type of contracts

Front 34

5 years

Back 34

statute of limitations for written contracts

Front 35

4 years

Back 35

statute of limitations for oral (parol) contracts

Front 36

witnessed or notarized, and a

deposit is not required

Back 36

2 things not required of real estate contracts

Front 37

Formal contract

Back 37

written and under seal

Front 38

informal contract

Back 38

oral (parol)

Front 39

express contract

Back 39

exist when all of the terms and conditions have been spelled out and a meeting of the minds is reached

Front 40

implied contract

Back 40

exists when some of the conditions may be reasonable implied

Front 41

Executory Contract

Back 41

contracts not yet fully performed

Front 42

Executed contract

Back 42

all parties to a contract have completely performed all the obligations and promises contained in a contract.

Front 43

Withdrawal, Counteroffer, Insanity, Acceptance,

Lapse of time, Rejection, Death, Destruction of Property

Back 43

8 Ways to terminate an offer

Front 44

Offeror

Back 44

person making an offer

Front 45

offeree

Back 45

person receiving offer

Front 46

Specific performance

Back 46

the court orders the other party to perform according to the terms of the contract

Front 47

rescission

Back 47

cancellation of the contract and restoration of the parties to their original positions

Front 48

compensatory damages

Back 48

involves a lawsuit to recover the actual amount of the monetary loss

Front 49

Optionor

Back 49

the property owner in an option contract; has obligation to sell

Front 50

Optionee

Back 50

the prospective buyer in an option contract; has a right to buy

Front 51

Performance

Back 51

when both parties have fully performed the terms and conditions of a contract, the purpose of the contract has been accomplished and the contract is terminated.

Front 52

mutual rescission

Back 52

an agreement between the contracting parties to terminate their respective duties under the contract.

Front 53

impossibility of performance

Back 53

performance may be impossible and beyond the control of the parties therefore the contract is terminated

Front 54

breach of contract

Back 54

one of the parties fails to perform and the law does not recognize the reason for failure to perform as valid, contract is terminated.

Front 55

Johnson v Davis

Back 55

a well known legal case in FL, set legal precedence concerning material defects disclosures.

Front 56

lead based paint disclosure

Back 56

disclosure, applies if the home was built prior to 1978

Front 57

10 days

Back 57

time period sellers must allow homebuyers to conduct an inspection for the presence of lead-based paint

Front 58

5 days

Back 58

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 give to the buyer.