Contracts and Conveyances: Listings, FR/BAR Contracts, Deeds, and Closing
Contracts and Conveyances tests the documents that create and transfer rights: listing and buyer brokerage agreements, purchase and sale contracts, addenda, contract for deed, options, deeds, title and closing, RESPA/TILA, and Florida-specific forms.
Listing and buyer brokerage
Florida listing agreements include exclusive right of sale, exclusive agency, open listing, and net listing. The exclusive right of sale earns a commission regardless of who procures the buyer. Buyer brokerage agreements establish the buyer's representation and compensation. Both should state the relationship, term, compensation, and dispute resolution.
Purchase and sale contracts
The Florida Realtors/Florida Bar Residential Contract for Sale and Purchase and the AS IS version are standard forms. Key terms include effective date, escrow, inspection period, financing and appraisal contingencies, title, closing date, and remedies. Addenda and riders, such as HOA, lead-based paint, and condo riders, become part of the contract only when signed.
Contract for deed and options
A contract for deed lets the buyer possess and pay over time while the seller keeps legal title; the buyer has equitable title and risks forfeiture on default. An option gives the buyer the right, not the obligation, to buy within a set period; the option fee is usually nonrefundable.
Deeds, title, and closing
A warranty deed includes covenants; a special warranty deed covers the grantor's own acts; a quitclaim deed transfers only the grantor's interest. Title insurance protects against covered defects. RESPA/TILA requires a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing.
Worked example
A buyer using the FR/BAR AS IS contract has a 15-day inspection period. The buyer sends a repair request on day 10. Under the AS IS form, the buyer may terminate for any reason during the inspection period by written notice; a repair request alone is not a termination. If the seller refuses repairs and the buyer does nothing, the buyer loses the unrestricted right to cancel after day 15.
Traps
Missing a deadline because the contract says calendar days; treating a preapproval as a loan commitment; using an unsigned addendum; and assuming an option creates a binding sale.