A Florida broker presents a contract to purchase a beachfront condo. The contract states the purchase price as '$500,000 or current market value, whichever is lower, to be determined at closing.' What is the legal status of this contract?
Correct Answer
C) Void for lack of definiteness in material terms
Correct: C - The contract is void because the purchase price is not sufficiently definite. Price is a material term that must be certain or ascertainable by objective standards in the contract. Why not A: Having a maximum doesn't cure the lack of definiteness. Why not B: The contract is void, not voidable, due to indefinite terms. Why not D: An appraisal contingency doesn't cure the fundamental defect of indefinite price terms.
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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?
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In a Tampa transaction, a buyer wants the Florida rule on as-is versus standard contract structure. Which statement is correct?
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A Florida real estate contract specifies a purchase price of $400,000 with the buyer providing a $25,000 earnest money deposit. The contract requires an additional deposit of 5% of the purchase price within 10 days of the effective date. What is the total deposit amount the buyer must provide?