State Exam

Front 1

Meeting of the minds

Back 1

They must reach an agreement on all terms in the contract. The contract is formed at the instant that acceptance of an offer is communicated to the offeror. Therefore, a contract is formed on the acceptance of an offer and communication of the acceptance.

Front 2

Consideration

Back 2

Is whatever is given in exchange for something else.

Front 3

Two types of consideration

Back 3

Valuable consideration

Good consideration

Front 4

Statute of Frauds

Back 4

Requires that contracts conveying an interest in real property and contracts that are not performed within one year of the date created must be in writing and signed to be enforceable.

Front 5

Enforceable contract

Back 5

Is a legally binding contract that the courts will recognize.

Front 6

Contracts covered by Florida’s statute of frauds include

Back 6

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

Front 7

Statute of limitations

Back 7

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

Written contracts-five years

Oral contract-four years

Front 8

Oral Real Estate contract

Back 8

Is a valid contract in a few specific situations. If a buyer and seller verbally agree to a purchase and sale of real estate, and the buyer pays part of the purchase price and takes possession of the property or has made improvements to the property, the courts will recognize the contract.

Front 9

Void contract

Back 9

Use of a forged name.

Front 10

Voidable contract

Back 10

Minor contract.

Front 11

Unenforceable contract

Back 11

Not in writing as required by the statute of frauds, because the statute of limitations has passed or because the property is destroyed.

Front 12

Contracts in general

Back 12

Back (Definition)

Front 13

Promissory note

Back 13

A formal contract.

Front 14

Parol contract

Back 14

An oral agreement

Informal contract

Front 15

Executory Contract

Back 15

Is an agreement between parties that involves promises to be completed at a future date. Ex. Property owner contracts with a builder to construct a home on their lot. Terms are not fully yet performed.

Front 16

Executed contract

Back 16

Exist when both parties have completed their obligations.

Ex. At title closing, a real estate sale contract is executed.

Front 17

Contract classifications

Back 17

Formal-in writing

Informal-oral

Bilateral-Both parties obligated

Unilateral-One party obligated

Express-in words

Implied-by acts and conduct

Executory-not yet fully performed

Executed-completed all terms and conditions

Front 18

Novation

Back 18

Agreement relieves the assignor from the liability to perform in a contract.

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

Front 19

Listing contract

Back 19

May be written, oral, or implied. However, listing agreements for a term longer than one year must be in writing to be enforceable under the statute of frauds.

Front 20

Listing contracts

Back 20

Chapter 475 F.S. Requires

Expiration date

Description of the property

Listing price and terms

Brokers compensation

Signature of all owners of record

Front 21

Open listing

Back 21

One or more brokers

Front 22

Open listing

Back 22

One or more brokers

Only to broker who sells property

Front 23

Conflicting demands

Back 23

Broker notify Frec in writing within 15 business days of receiving the conflicting demands.

Front 24

Rental

Back 24

Provide receipt. It must state that a prospective tenant who does not obtain a rental is entitled to be repaid 75% of the fee paid if requested within 30 days of the contract/receipt date. If the information provided to the tenant is not current or is inaccurate the broker must repay 100% back to them.

Front 25

Sherman Anti Trust Act

Back 25

Preserving competition and ensuring against restraint of trade. Two prohibited acts are pricefixing and market allocation “splitting up competitive market areas among themselves and not compete in each other’s area’s”.

Front 26

Kickbacks

Back 26

Parties to the transaction must be fully informed. Buyer and seller must be informed.

Must not be prohibited by other law.

Front 27

Sharing a commission

Back 27

It is unlawful to share a commission with an unlicensed person other than the seller or buyer. Florida law allows sharing with the seller and buyer as long as it is disclosed to all interested parties. Legal Kickback.

Front 28

Vacancies of office

Back 28

If the only active broker of a brokerage corporation dies, resigns, is removed from office or is unexpectedly unable to remain in the position as active broker, the vacancy must be filled within 14 calendar days. Failure to appoint another active or temporary broker within the 14 days will result in automatic cancellation of the brokerage firm’s registration and the licensee’s, officer’s, director’s and sales associates will become involuntarily inactive.

Front 29

Personal Assistant

Back 29

Back (Definition)

Front 30

Personal assistant cannot

Back 30

Present an offer to the seller.

Negotiate and prepare a listing contract with a property owner.

Front 31

Conflicting demands

Back 31

Broker must notify the Frec in writing within 15 business days and must institute one of the settlement procedures within 30 business days of receiving conflicting demands.

Front 32

Referral

Back 32

Florida law prohibits a real estate licensee from paying money to an unlicensed person for the referral of real estate business.

Front 33

Executory contract

Back 33

Builder contract.

Not yet finished.

Front 34

Tax exemtion for blind

Back 34

If they make over $28,115.00 there is a tax exemption available.

Front 35

Easement Appurtenant

Back 35

Allows an owner the use of an adjacent property.

Involves two or more parcels of property and continues from owner to owner.

Front 36

Easement in gross

Back 36

Benefits the company who owns it.

Power poles

Front 37

Easement by prescription

Back 37

Is acquired by continually using another person’s real property for the statutory period when each use is adverse to the owner’s interest. The easement is created after 20 years of open, continuous, uninterrupted use.

Front 38

Superior liens

Back 38

Real Estate tax liens, which become a lien Jan 1st each year.

Special assessment liens.

Federal Estate tax lien.

Front 39

Junior Lien

Back 39

Mortgage liens.

Judgement liens.

Vendor liens.

Income tax liens.

Front 40

Base line

Back 40

East West line

Front 41

Metes

Back 41

Distance

Front 42

Bounds

Back 42

Direction

Front 43

Metes and bounds

Back 43

Oldest method of land description.

Front 44

Township

Back 44

36 square miles

Front 45

Lot and block

Back 45

Platvmap

Front 46

Acre

Back 46

43,560 square feet

Front 47

Mile

Back 47

5,280 in length

Front 48

Check

Back 48

Square with each side measuring 24 miles.

Front 49

Novation agreement

Back 49

Relieves the assignor from the liability to perform in a contract.

Front 50

Enforceable contract

Back 50

Legally binding contract that the courts will recognize.

Front 51

Exclusive agency listing

Back 51

Seller can sell property without paying commission.

Front 52

Exclusive right of sale listing

Back 52

No matter who sells the broker gets the commission.

Front 53

Lead based paint disclosure

Back 53

Sellers and landlords disclose to prospective buyers and tenants the presence of known lead-based paint in residential property built before 1978.

Sale contracts and leases include a disclosure about lead-based paint.

An EPA pamphlet regarding the danger of lead based paint be given to buyers and tenants before the sale or lease of residential property built before 1978.

Sellers allow homebuyer a 10 day period during which to conduct an inspection for the presence of lead based paint.

Front 54

Homeowners association disclosure

Back 54

Provide buyers with a disclosure summary regarding the association, the existence of restrictive covenants, and any assessments.

Front 55

Property tax disclosure

Back 55

Buyers must be presented a disclosure summary concerning ad valorem taxes before or at the time of execution of the contract for sale.

Front 56

Acceleration clause

Back 56

Allows the lender to call the entire loan balance due and payable.

Front 57

Defeasance clause

Back 57

In a mortgage in Florida releases the mortgage lien once debt is paid in full.

Front 58

Primary mortgage market

Back 58

Consists of lenders that originate new mortgage loans.

Front 59

Fannie Mae 1938

Back 59

Buys conventional, fha insured, va guaranteed loans.

Largest secondary mortgage gse.

Issues mortgage-back securities.

Front 60

Freddie Mac

Back 60

Buys conventional mortgage loans.

Front 61

S

Back 61

S

Front 62

Doc stamps on deed

Back 62

.70 for each 100.00 of the full purchase price.

Front 63

State doc stamp tax on promissory notes.

Back 63

.35 per 100.00 on the face value of the promissory note. The tax is entered as a debit to the buyer on the closing disclosure.

Front 64

Intangible tax on New mortgages

Back 64

New loan amount x.002.