Real Estate Law, Contract Law, and Florida Contract Forms
Contract questions focus on Florida contract law and the FR/Bar residential sale contract, including the AS IS and Standard versions, riders, contingencies, deadlines, default, and remedies. The exam tests whether a broker can spot a binding contract and protect the parties' deadlines.
Core rules
- A valid contract needs offer, acceptance, consideration, capacity, and legality. Real property contracts must satisfy the Statute of Frauds and be in writing, though Florida's electronic-signature law permits e-signatures.
- The FR/Bar contract fixes an effective date, escrow-deposit deadline, inspection period, financing contingency, closing date, and default remedies.
- If the buyer defaults, the seller may retain the escrow deposit as liquidated damages when the contract so provides; specific performance may also be available. If the seller defaults, the buyer may seek specific performance or damages.
- Contingencies are conditions, not suggestions. Missing a deadline can waive a right or create a default.
- Required riders and disclosures, such as condominium, HOA, property-tax, and radon provisions, must be delivered as required.
Worked example
A buyer signs an FR/Bar AS IS contract with a 10-day inspection period. On day 12 the buyer sends a cancellation based on a roof defect. Because the inspection period expired, the buyer no longer has an unconditional right to cancel and may lose the deposit unless another contingency applies. The reasoning: the inspection period is a contractual deadline, and 'time is of the essence' language can make it enforceable.
Traps
Do not treat a verbal modification as binding when the contract requires writing. Do not ignore 'time is of the essence.' Do not assume AS IS eliminates all seller disclosure duties. Do not overlook riders or miss the escrow-deposit deadline.