panama city: Elements of a valid and enforceable real estate contract
- 07/03/11 03:20 AM
•To remember elements of a valid and enforceable real estate contract:
C Competent parties
O Offer and acceptance (meeting of the minds)
L Legal purpose
I In writing and signed (statute of fraud)
C Consideration (valuable or good)
A contract does not have to be in any particular format to be valid, as long as it contains all the essential elements.
Contracts can be classified by their method of formation, their content, or their legal effect. The first classification is formal and informal contracts. - Formal contract, historically was in written form and under seal. -The term formal … (5 comments)
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panama city: Florida Statute of Limitations
- 07/03/11 03:13 AM
The Statute of Limitations designates the period of time during which the terms of a contract may be enforced. It protects people from being compelled to perform or otherwise be sued after a period of time has expired.
-The times vary, depending on whether it is an oral contract or a written contract:
Written contracts, 5 years Oral (parol) contracts, 4 years Partly written, and partly oral. 5 years for the written portion and 4 years for the oral portion. This information is courtesy of Captain Wayne Rowlett and Rowlett Real Estate School www.rowlettrealestateschool.com
Rowlett Real Estate provides traditional … (0 comments)
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panama city: enforceable contracts
- 07/03/11 02:51 AM
An enforceable contract is a legally binding contract that the courts will recognize.
The Florida Statutes of frauds requires that contracts conveying an interest in real property and contracts that are not to be performed within one year of the date created, must be in writing and signed to be enforceable.
Contracts covered by Florida's statute of frauds include the following:-Purchase and Sale Contracts -Option Contracts-Deeds and Mortgage Instruments-Lease agreements for a term longer than 1 year-Listing agreements for a term longer than 1 year.
This information is courtesy of Captain Wayne Rowlett and Rowlett Real Estate School www.rowlettrealestateschool.com
Rowlett … (1 comments)
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panama city: Real Estate Promise and Consideration
- 07/03/11 02:41 AM
A promise undertaken by one party must be supported by a promise taken by the other party. -Mutual promises to do or not to do some specific act are sufficient consideration, even though the benefit or the sacrifice may not be equal.
In real estate sale contracts, the seller normally promises to sell and convey, and the purchaser promises to pay for the property. -There are two types of consideration: 1. Valuable consideration is the money or promise of something that can be measured in terms of money.
2. Good Consideration is a promise that cannot be measured in … (0 comments)
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panama city: Consideration
- 07/03/11 02:29 AM
Consideration is whatever is given in exchange for something else. People often think of consideration as the money exchanged by the parties. Legally, consideration is the obligation that each party makes to the other to make the contract enforceable. Each party to the contract must obligate himself or herself by placing consideration in the agreement.
A common misconception is that the good-faith deposit in a real estate sale contract is the consideration. The good faith deposit is made by a buyer to assure the seller that the buyer is serious about the transaction and the buyer intends to purchase the property.
… (0 comments)
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panama city: Mutual Assent
- 07/03/11 02:25 AM
Mutual assent refers to the making and acceptance of an offer. The parties must come to a meeting of the minds. -Meaning they must reach an agreement on all terms in the contract. -A complete and mutual understanding must exist to produce a meeting of the minds.
This information is courtesy of Captain Wayne Rowlett and Rowlett Real Estate School www.rowlettrealestateschool.com Rowlett Real Estate provides traditional classroom training in Panama City, Florida and in Destin Florida.Feel free to visit our classroom schedule athttp://www.rowlettrealestateschool.com/fl-schedule.htm
Rowlett Real Estate School is a full service Florida real estate school with online real estate courses in … (0 comments)
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panama city: Unenforceable contracts
- 07/03/11 02:17 AM
An unenforceable contract is a contract that cannot be proved or will not be recognized by a court. A contract may be unenforceable because it is not in writing, the statute of limitations has passed or because the property is destroyed.
Contracts that involve a transfer of real property must be in writing and signed to be legally enforceable.
The parties to a contract are competent if they have the legal capacity to contract, - meaning they have no mental defects or insanity and are both of legal age to contract.
•A sane person contracting with an insane person or … (6 comments)
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panama city: Real Estate Contracts
- 07/03/11 02:10 AM
Nearly every business transaction is based on a contract. The key to every contract is the promise. In real estate contract, the seller promises to convey title and the buyer promises to pay. Contract promises are enforceable by law.
To draft a legal document for others is considered practicing law. Real estate brokers and sales associates may not prepare deeds, mortgages, promissory notes or other legal documents. Licensees who prepare such instruments could loose their license, regardless of whether they receive compensation.
Real estate licensees are allowed to assist buyers and sellers with the drawing of four types of Real Estate Contracts;
-Listing … (0 comments)
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panama city: Oral Contracts
- 07/03/11 01:42 AM
A contract is an agreement between two or more parties to do or not to do certain things, supported by a sufficient consideration.
A valid contract is one that complies with the provisions of contract law and contains the following four essential elements:
1.Competent parties 2.Offer and acceptance (mutual assent) 3.Legal purpose 4.Consideration
Contracts may be in writing or oral. Contracts that involve a transfer of real property must be in writing and signed to be legally enforceable. The parties to an oral real estate contract may have a valid contract containing the four essential elements, but will not be enforceable in … (2 comments)
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panama city: Radon Gas Disclosure
- 07/03/11 01:34 AM
A radon gas disclosure statement on real estate sale and lease contracts is required on at lease one document before or at the time of executing a sale contract or rental agreement for any building. Such notification shall contain the following language:
RADON GAS: "Radon is a naturally occurring radioactive gas that when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from … (1 comments)
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panama city: Appraising Real Property
- 06/12/11 05:12 PM
To appraise real property means to estimate it's value. Appraising is considered to be an art, not a science, because although the appraisal process involves mathematical calculations, appraisers also use their own judgment when appraising real property.
Active real estate licensees are allowed to preform a Comparative Market Analysis (CMA) A CMA is an informal estimate of market value preformed by a real estate licensee to assist a seller in arriving at an appropriate listing price, or if working with a buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering price.
This information is … (0 comments)
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panama city: Market Value
- 06/12/11 05:09 PM
The type of value of most importance to real estate licensees is Market Value.
The concept of market value or fair market value, as it is sometimes called, is based on a theory that in any open market there will be a number of buyers and sellers. Some will pay too much and some will pay too little, but the majority of buyers and sellers will meet in the range of market value.
Fannie Mae and Freddie Mac's definition of market value for the appraisal of real property securing a mortgage to be sold on the secondary market is; The … (1 comments)
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panama city: The Real Estate Market
- 06/12/11 05:07 PM
The word Market has many meanings like, farmers market, or stock market but regardless of the difference in form, the basic principle of all market operations is;A market can function only when sellers and buyers interact. Many markets use intermediaries to facilitate activities between seller and buyer, and the real estate market is one such market.
This information is courtesy of Rowlett Real Estate School www.rowlettrealestateschool.com free to visit our class schedule and online real estate courses at http://www.rowlettrealestateschool.com/fl-schedule.htm
P.Stone, RRES
… (0 comments)
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panama city: FAX Solicitations
- 06/01/11 12:43 AM
FCC rules mandate that it is unlawful to send unsolicited advertisements to a residential or business fax machine without the recipients prior permission
•Four requirements a sender must meet before sending unsolicited advertising faxes 1.Sender must have an established business relationship with the recipient or written consent. 2.Sender must have received the recipient's fax number voluntarily from the recipient. 3.Sender must clearly state on the first page of the ad that the recipient has the right to opt-out of future advertisements. 4.Sender must honor opt-outs received from recipients within 30 days of receipt.
This information is courtesy of Rowlett Real Estate … (3 comments)
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panama city: Brokerage Office Requirements
- 05/31/11 11:55 PM
All active brokers are required to have an office and to register the office with the DBPR -Office must consist of at least one enclosed room in a building of stationary construction that will provide privacy to conduct negotiations an closings of real estate transactions. -Brokers books, records and files are to be kept in the office.
-Florida law does not require a broker to have a phone, desk, business checking account, or an escrow account.
-If local zoning permits, the brokers office may be in the brokers residence, provided the required sign is displayed properly.
-Broker may have an office or offices … (3 comments)
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panama city: Misrepresentation and Fraud
- 05/28/11 05:10 AM
The law allows an agent to enthusiastically describe the value of real estate and or the potential of the property. -A Licensees may not exaggerate, conceal or misrepresent by making statements they know to be untrue.
Puffing is a term used to describe a licensee's boasting of a property's benefits.
Example:
"The apartment has a fantastic view" is puffing because the prospect is clearly able to assess the view and the statement is an opinion. "The apartment has a fantastic view of the lake" When in fact the lake is not visible from the apartment, makes the statement untrue and would be … (3 comments)
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panama city: Accounting for All Funds
- 05/28/11 03:59 AM
Money and valuables entrusted to a broker must be kept separate from the broker's funds. The broker is not entitled to any trust or escrow funds until the transaction is concluded at the title closing. Brokers are required to keep complete records of all transactions and funds as well as to make all records available to the DBPR.
Information is courtesy of Rowlett Real Estate School LLC and Captain Wayne Rowlett.
For information on our classroom courses and online courses visit our website at www.rowlettrealestateschool.com Check out our website for a full line up of Online real estate courses including our … (2 comments)
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panama city: Transaction Broker Relationship
- 05/28/11 02:19 AM
A transaction broker is a broker who provides limited representation to a buyer, a seller or both in a real estate transaction, but who does not represent either party in a fiduciary capacity or as a single agent. Under Florida law, it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with the customer.
Information is courtesy of Rowlett Real Estate School LLC and Captain Wayne Rowlett.
For information on our classroom courses and online courses visit our website at www.rowlettrealestateschool.com Check out our website for a full … (2 comments)
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panama city: Residential Real Estate Transactions
- 05/28/11 02:15 AM
Chapter 475 mandated certain duties and obligations in each type of brokerage relationship that apply to all real estate transactions. However, written disclosures are required only when dealing in residential real estate transactions. Licensees are no longer required to give customers a written disclosure when a transaction broker relationship is chosen.
Information is courtesy of Rowlett Real Estate School LLC and Captain Wayne Rowlett.
For information on our classroom courses and online courses visit our website at www.rowlettrealestateschool.com Check out our website for a full line up of Online real estate courses including our traditional Live Classroom Training.We have live classroom … (0 comments)
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panama city: Dual Agency in Florida
- 05/28/11 02:11 AM
It is illegal in Florida for a real estate licensee to operate as a dual agent. Dual Agency means a broker who represents as a fiduciary to both the buyer and the seller in a real estate transaction
Fiduciary is a relationship of trust and confidence between broker as agent and the principal. Florida law prohibits a broker from creating a fiduciary relationship with both the buyer and the seller
Information is courtesy of Rowlett Real Estate School LLC and Captain Wayne Rowlett.
For information on our classroom courses and online courses visit our website at www.rowlettrealestateschool.com Check out our website for a … (2 comments)
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•To remember elements of a valid and enforceable real estate contract:
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