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Florida Real Estate Contracts — Printable Practice Pack

Florida state portion · Chapter 475 F.S., Rule 61J2 and Florida's transaction-broker relationships · 20 questions · Answer key on the last page · agentexamcoach.com

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1.A buyer makes an offer to purchase a property with a contingency for financing. The seller rejects the offer and makes a counteroffer with different terms. What happens to the original offer?
(A)It remains open for acceptance
(B)It is rejected and a new offer is made
(C)It is put on hold pending financing
(D)It terminates and cannot be accepted
2.What is the effect of a breach of contract by the buyer on the earnest money deposit?
(A)The buyer forfeits the deposit to the seller
(B)The seller must refund the deposit to the buyer
(C)The deposit is held in escrow until the dispute is resolved
(D)The buyer may recover the deposit plus damages from the seller
3.A buyer makes an offer on a home, but the seller responds with a counteroffer that changes the price. What happens to the original offer?
(A)It remains open for acceptance
(B)It is rejected and a new offer is made
(C)It becomes a contract
(D)It is terminated and replaced by the counteroffer
4.A buyer makes an offer on a home, but the seller responds with a counteroffer. What happens to the original offer?
(A)It remains open for acceptance
(B)It is rejected and a new offer is made
(C)It is put on hold pending further negotiation
(D)It is terminated and replaced by the counteroffer
5.What is the effect of a contingency for financing on a real estate contract?
(A)It makes the contract voidable at the buyer's option
(B)It makes the contract voidable at the seller's option
(C)It requires the buyer to secure financing within a specified timeframe
(D)It waives the buyer's right to inspect the property
6.A seller's agent is negotiating a contract with a buyer's agent. The buyer's agent makes a counteroffer that includes a new contingency. What happens to the original offer?
(A)It remains open for acceptance
(B)It is rejected and a new offer is made
(C)It is amended to include the new contingency
(D)It terminates and cannot be accepted
7.A buyer and seller enter into a contract with a financing contingency. If the buyer is unable to secure financing, what happens to the earnest money?
(A)It is forfeited to the seller
(B)It is used to pay for inspections
(C)It is held in escrow until the issue is resolved
(D)It is refunded to the buyer
8.Which of the following is a required element for a contract to be enforceable under the Statute of Frauds?
(A)The contract must be in writing and signed by the parties
(B)The contract must be notarized and recorded
(C)The contract must be for a residential property only
(D)The contract must be for a commercial property only
9.A buyer and seller enter into a contract that is not in writing. Is the contract enforceable?
(A)Yes, as long as there is consideration and mutual agreement
(B)No, but it can be enforced if the buyer has taken possession of the property
(C)Yes, but only if the buyer has paid earnest money
(D)No, because it is not in writing and signed by both parties
10.A buyer makes an offer on a property, but the seller responds with a counteroffer that changes the price. What happens to the original offer?
(A)It remains open for acceptance
(B)It becomes a binding contract
(C)It is put on hold pending the buyer's response
(D)It is terminated and replaced by the counteroffer
11.A buyer makes an offer on a property with a $10,000 earnest money deposit. The seller counteroffers with different terms. What happens to the original offer?
(A)It is accepted and the sale proceeds
(B)It remains open for acceptance
(C)It is rejected and the buyer gets the deposit back
(D)It is terminated
12.A real estate contract is subject to a financing contingency. What happens if the buyer is unable to obtain financing?
(A)The buyer is required to purchase the property anyway
(B)The seller must provide financing to the buyer
(C)The buyer may negotiate a new price or terms
(D)The contract is terminated and the earnest money is refunded
13.A contract for the sale of a property is required to be in writing under the Statute of Frauds. Why is this requirement imposed?
(A)To prevent fraud and ensure that all parties are aware of the terms
(B)To allow for oral contracts to be enforceable
(C)To give the buyer more time to consider the purchase
(D)To reduce the amount of paperwork required
14.A real estate contract is subject to a contingency for the buyer's financing. If the buyer is unable to secure financing, what is the result?
(A)The contract is terminated and the earnest money is refunded
(B)The contract is terminated and the earnest money is forfeited
(C)The contract becomes binding and the buyer must purchase the property
(D)The contract is amended to extend the financing deadline
15.A buyer makes an offer to purchase a property with a contingency for financing. The seller counteroffers with different terms. What happens to the buyer's original offer?
(A)It remains open for acceptance
(B)It becomes a contract
(C)It is binding on the seller
(D)It is terminated
16.A buyer signs a contract to purchase a property, but later discovers a major defect. What is the buyer's remedy if the seller refuses to fix the issue?
(A)Specific performance
(B)Rescission of the contract
(C)Damages for breach of contract
(D)All of the above
17.A buyer and seller enter into a contract for the sale of a property, but the buyer fails to perform. What is the seller's remedy in this situation?
(A)Specific performance
(B)Rescission
(C)Damages
(D)All of the above
18.A buyer makes an offer to purchase a property with a price of $500,000. The seller responds with a counteroffer of $525,000. What is the status of the original offer?
(A)It is still valid and can be accepted by the seller
(B)It is pending and requires further negotiation
(C)It can be revised and resubmitted by the buyer
(D)It is terminated and cannot be accepted by the seller
19.A buyer pays earnest money as part of the purchase contract. What happens to the earnest money if the buyer defaults?
(A)It is refunded to the buyer
(B)It is divided between the buyer and seller
(C)It is held by the title company until the dispute is resolved
(D)It is given to the seller as liquidated damages
20.A buyer and seller enter into a contract that is subject to a contingency for inspection. If the buyer discovers a defect during the inspection, what can they do?
(A)Terminate the contract and receive a refund of the earnest money
(B)Request that the seller repair the defect
(C)Negotiate a reduction in the purchase price
(D)All of the above

Answer key & explanations

1. D — A counteroffer terminates the original offer, and it cannot be accepted thereafter.
2. A — If the buyer breaches the contract, the buyer may forfeit the earnest money deposit to the seller, depending on the contract terms.
3. D — A counteroffer terminates the original offer, requiring the buyer to accept or reject the new terms.
4. D — A counteroffer terminates the original offer, requiring the buyer to accept or reject the new terms.
5. A — A contingency for financing makes the contract voidable at the buyer's option, allowing the buyer to cancel the contract if they are unable to secure financing.
6. D — A counteroffer that includes new terms, such as a contingency, terminates the original offer and cannot be accepted thereafter.
7. D — If a buyer is unable to secure financing due to a financing contingency, the earnest money is typically refunded to the buyer.
8. A — The Statute of Frauds requires certain contracts, including those for real estate, to be in writing and signed by the parties to be enforceable.
9. D — The statute of frauds requires that certain contracts, including those for the sale of real estate, be in writing and signed by both parties to be enforceable.
10. D — A counteroffer terminates the original offer, requiring the buyer to accept or reject the new terms.
11. D — A counteroffer terminates the original offer, allowing the buyer to either accept or reject the new terms.
12. D — If the buyer is unable to obtain financing, the contract is typically terminated and the earnest money is refunded, as the contingency has not been met.
13. A — The Statute of Frauds requires certain contracts, including those for the sale of real property, to be in writing to prevent fraud and ensure that all parties are aware of the terms.
14. A — If the buyer is unable to secure financing, the contract is terminated and the earnest money is typically refunded, as the contingency was not met.
15. D — A counteroffer terminates the original offer, requiring the buyer to accept or reject the new terms.
16. D — The buyer may seek specific performance (forcing the seller to fix the issue), rescission of the contract (canceling the contract), or damages for breach of contract (monetary compensation).
17. D — The seller's remedy for the buyer's breach of contract may include specific performance, rescission, or damages, depending on the circumstances.
18. D — A counteroffer terminates the original offer, and the seller's counteroffer of $525,000 terminates the buyer's original offer of $500,000.
19. D — If the buyer defaults, the earnest money is typically given to the seller as liquidated damages.
20. D — If the buyer discovers a defect during the inspection, they can terminate the contract and receive a refund of the earnest money, request that the seller repair the defect, or negotiate a reduction in the purchase price.

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