Florida · state portion

Free Florida Real Estate Contracts practice questions

10 original questions with full explanations. 12 of the 100 scored exam questions (about 12%) come from this area.

1. 1

   A real estate contract must be in writing to be enforceable under the Statute of Frauds. What is the primary purpose of this requirement?

   • A. To provide a record of the transaction for tax purposes
   • B. To prevent disputes over the terms of the contract
   • C. To protect the buyer from making a mistake in their offer
   • D. To prevent fraudulent transactions and ensure that all parties are clear on the terms of the contract
   Show answer & explanation

   Answer: D

   The Statute of Frauds requires that certain contracts, including real estate contracts, be in writing to prevent fraudulent transactions and ensure that all parties are clear on the terms of the contract.

2. 2

   A buyer makes an offer to purchase a property with a contingency for financing, but the seller rejects the offer and makes a counteroffer without the contingency. What is the status of the original offer?

   • A. It is still valid and can be accepted by the seller
   • B. It is automatically accepted if the buyer obtains financing
   • C. It can be modified by the buyer to remove the contingency
   • D. It is terminated and cannot be accepted by the seller
   Show answer & explanation

   Answer: D

   A counteroffer terminates the original offer, and the buyer must accept the new terms of the counteroffer if they want to proceed with the purchase.

3. 3

   What is the result of a buyer's breach of a real estate contract?

   • A. The seller may sue for specific performance
   • B. The seller may forfeit the earnest money
   • C. The seller may terminate the contract and retain the earnest money
   • D. All of the above
   Show answer & explanation

   Answer: D

   If a buyer breaches a real estate contract, the seller may sue for specific performance, forfeit the earnest money, or terminate the contract and retain the earnest money, depending on the circumstances and the terms of the contract.

4. 4

   A buyer gives a seller $1,000 in earnest money as a deposit on a property. What happens to the earnest money if the buyer breaches the contract?

   • A. It is refunded to the buyer
   • B. It is held in escrow until the dispute is resolved
   • C. It is split between the buyer and seller
   • D. It is given to the seller as damages
   Show answer & explanation

   Answer: D

   If the buyer breaches the contract, the earnest money is typically forfeited to the seller as damages.

5. 5

   A contract for the sale of a property includes a contingency for the buyer's financing. If the buyer is unable to secure financing, what is the effect on the contract?

   • A. The contract is terminated, and the earnest money deposit is refunded to the buyer
   • B. The contract remains in effect, and the buyer is obligated to purchase the property
   • C. The seller may sue the buyer for damages
   • D. The contract is terminated, but the earnest money deposit is forfeited to the seller
   Show answer & explanation

   Answer: A

   If the buyer is unable to secure financing, and the contract includes a contingency for financing, the contract is terminated, and the earnest money deposit is typically refunded to the buyer.

6. 6

   What is the purpose of the statute of frauds in relation to real estate contracts?

   • A. To require all contracts to be in writing
   • B. To limit the amount of earnest money that can be required
   • C. To prohibit oral contracts for the sale of real property
   • D. To require contracts for the sale of real property to be in writing to be enforceable
   Show answer & explanation

   Answer: D

   The statute of frauds requires contracts for the sale of real property to be in writing to be enforceable, in order to prevent disputes and fraud.

7. 7

   Which of the following is a requirement for the sale of a pre-1978 residential property?

   • A. Disclosure of the presence of asbestos
   • B. Disclosure of the seller's identity
   • C. Disclosure of the property's value
   • D. Disclosure of the presence of lead-based paint
   Show answer & explanation

   Answer: D

   Federal law requires sellers of pre-1978 residential properties to disclose the presence of lead-based paint to potential buyers.

8. 8

   What is the effect of the statute of frauds on a real estate contract?

   • A. It requires the contract to be recorded to be enforceable
   • B. It allows the contract to be oral
   • C. It prohibits the contract from being in writing
   • D. It requires the contract to be in writing to be enforceable
   Show answer & explanation

   Answer: D

   The statute of frauds requires certain contracts, including those for the sale of real property, to be in writing to be enforceable.

9. 9

   What is the effect of a breach of contract by one party on the other party's obligations?

   • A. The other party is released from their obligations
   • B. The other party must continue to perform their obligations
   • C. The other party can sue for damages
   • D. The contract is automatically terminated
   Show answer & explanation

   Answer: A

   If one party breaches the contract, the other party is released from their obligations, as the breach has excused their performance.

10. 10

    A buyer makes an offer on a property with a $10,000 earnest money deposit. The seller responds with a counteroffer, increasing the price by $5,000. What happens to the original offer?

    • A. It remains open for acceptance
    • B. It is renegotiated based on the counteroffer
    • C. It is accepted and the buyer must pay the higher price
    • D. It is rejected and replaced by the counteroffer
    Show answer & explanation

    Answer: D

    A counteroffer terminates the original offer, replacing it with a new proposal.