All of the following are required elements for a valid real estate contract in Florida EXCEPT:
Correct Answer
C) Earnest money deposit
Correct: C - Earnest money deposit is NOT a required element for a valid contract in Florida. While common, consideration can take other forms. Why not A: Legal purpose is required - contracts for illegal purposes are void. Why not B: Competent parties are required - parties must have legal capacity. Why not D: Mutual assent (meeting of the minds) is required for contract formation.
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- → In Florida, the inspection period is typically:
- → A buyer signs a Florida purchase contract for a condo and learns during the inspection period about a special assessment of $10,000. The seller knew but didn't disclose this. What are the buyer's rights?
- → A buyer and seller in Florida agree to extend the closing date by 10 days. The original contract had a 'time is of the essence' clause. What must they do to make this extension valid?
- → In Florida real estate contracts, what legal principle requires that both parties exchange something of value?
- → A Florida real estate licensee prepares a purchase agreement that includes a financing contingency. The buyer fails to apply for financing within the specified timeframe. What is the legal consequence under Florida contract law?
- → Under Florida law, all of the following would typically survive the closing of a real estate purchase agreement EXCEPT:
- → A Florida purchase contract includes an appraisal contingency stating the property must appraise for at least the purchase price of $350,000. The appraisal comes in at $340,000. What options does the buyer have?
- → A Florida real estate purchase contract includes a financing contingency requiring loan approval within 30 days. On day 28, the buyer hasn't received approval but hasn't notified the seller. What is the buyer's status?
- → In a Florida real estate transaction, the purchase agreement includes a mortgage contingency clause. The buyer receives a loan commitment letter with an interest rate 0.5% higher than specified in the contract. What are the buyer's rights?
- → A Florida real estate broker prepares a purchase agreement that incorrectly states the lot size as 15,000 sq ft when it's actually 12,000 sq ft. The error is discovered after contract execution but before closing. What is the buyer's most likely remedy?
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Previous Question
A buyer submits an offer on a Florida property with a contingency that they must sell their current home within 60 days. The seller accepts but includes a 72-hour kick-out clause. After 30 days, another buyer makes a non-contingent offer. What must happen next according to Florida contract law?
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A Florida real estate sales associate prepares a contract for the sale of a commercial property. The contract includes a provision that the buyer will pay the sales associate a $5,000 bonus directly upon closing. Under F.S. Chapter 475, what is the status of this provision?