Real Estate Contracts
A contract is a promise enforceable at law. Required elements are offer, acceptance, consideration, legality of object, and competent parties, plus a writing for real property transactions.
Statute of frauds
Florida requires a signed writing for a sale of land, a lease longer than one year, and a contract that cannot be performed within a year. The writing must identify the parties, the property, and the terms; the party to be charged must sign. Notarization is not required for validity, only for recording.
Formation concepts
Acceptance must mirror the offer; any change is a counteroffer. An offer ends by revocation, rejection, counteroffer, lapse of time, death, or operation of law. Options are unilateral and must be kept open for the option period. Novation substitutes a party; assignment transfers a party's interest but not the assignor's liability.
Common terms
Liquidated damages, specific performance, contingencies (financing, inspection, appraisal), escrow, time is of the essence, default remedies, and the final walkthrough. FAR/BAR forms are widely used but not legally required. Licensees may complete blanks and explain contract terms, but may not draft legal language or give legal advice.
Traps
- Any material change by the offeree creates a counteroffer, not an acceptance.
- Consideration must be bargained for; past consideration does not count.
- An oral two-year lease is unenforceable under the statute of frauds.
- As-is contracts do not eliminate the seller's duty to disclose known material defects under Johnson v. Davis.
Rule of thumb
Use the mirror-image rule: acceptance must match the offer exactly or it becomes a counteroffer.