Florida · Chapter 11 of 19
Real Estate Contracts
Contract essentials and classifications, offers, termination, breach and remedies, the statute of frauds, options, listing agreements, and required Florida disclosures.
45-minute read · Built for the Sales Associate Exam
Essentials of a Valid Contract
A valid Florida real estate sales contract needs (1) competent parties, meaning legal age (18) and mental capacity; (2) mutual assent, a definite offer met by an unconditional acceptance; (3) consideration, something of legal value such as a promise or money; (4) a legal purpose; and (5) because it transfers an interest in land, a writing signed by the party to be charged. Exam trap: an earnest money deposit is NOT required to form a binding contract. The parties' exchanged promises are the consideration; the deposit is simply evidence of good faith and a source of damages if the buyer defaults.
Fla. Stat. §725.01
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