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    Florida Real Estate Contracts Practice Questions and Answers

    Practice offers, contingencies, remedies, and Florida seller disclosures with 12 free contract questions. Get a score, an explanation of the rule, and a breakdown of every wrong choice. No account needed.

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    Contracts Practice Questions

    12 practice questions on contracts, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.

    12 questions
    ~9 min
    12% of the exam

    All 12 questions and explanations are free. Contracts carries 12% of the published outline, about 12 questions. Your score on this small practice set does not predict your state-exam result.

    01 / Start with the right category

    Valid, void, voidable, or unenforceable?

    These words answer different questions. Read the facts before deciding whether a party is bound or can avoid the agreement.

    Valid

    The agreement meets the requirements for a binding contract.

    Competent parties agree to a lawful sale, supported by consideration and the required writing.

    See the related question →
    Void

    The agreement has no legal effect.

    An agreement to carry out an illegal purpose cannot be enforced as a valid bargain.

    See the related question →
    Voidable

    A protected party may affirm or avoid the agreement under the applicable rule.

    An unemancipated minor's nonessential contract is generally voidable by the minor.

    See the related question →
    Unenforceable

    A legal barrier prevents court enforcement, even though the parties may choose to perform.

    An oral land-sale agreement with no sufficient signed writing and no applicable exception.

    See the related question →

    FREC Course I syllabus, Section 11 · F.S. 725.01 · See Question 11 for the minor-contract authority.

    Signed and fully performed are different stages

    In contract classification, executory means performance remains due; executed means the required performance is complete. A signed purchase contract awaiting closing is ordinarily still executory.

    In a disclosure statute, execution of the contract means signing or entering the agreement. It does not mean you can wait until closing to deliver a disclosure due at contract execution. Also keep the buyer's equitable interest under a purchase agreement separate from the transfer of legal title.

    FREC Course I syllabus, Section 11F.S. 689.302Practice the distinction →
    An assignment is not a release

    Assignment transfers rights, while delegation concerns duties. Check whether the contract restricts either step. Even if a transfer is allowed, that alone does not establish a release of the original buyer.

    A novation replaces the original obligation with a valid new one by the necessary agreement. In Question 6, all three parties agree to substitute Buyer B and release Buyer A. That release, rather than the word assigned, decides the answer.

    FREC Course I syllabus, Section 11Schroer v. Crumdale Partners (2024)Practice the distinction →
    A failed condition is not necessarily a breach

    A financing contingency may allow cancellation if the buyer applies in good faith and cannot obtain the stated financing. The buyer still needs to comply with the clause's deadlines and notice requirements. Loan denial does not automatically cancel every contract or settle every deposit dispute.

    Florida's escrow statute permits a licensee to return funds for a good-faith failure to satisfy the financing clause without the usual FREC notice and settlement procedures. That provision is not permission to disregard the contract or treat any change of mind as financing failure.

    F.S. 475.25(1)(d)1.Practice the distinction →
    Match the remedy to what the party wants

    Specific performance seeks the promised act, such as conveying the property. Compensatory damages seek money for a proven loss. Liquidated damages are an agreed amount for a specified breach, subject to the clause being enforceable. A deposit is not automatically the seller's money whenever a sale falls through.

    Rescission seeks to undo the agreement. Novation is an agreed substitution, not a money award or an order forcing a sale. Availability of a remedy depends on the contract, the facts, and the governing law.

    FREC Course I syllabus, Section 11F.S. 95.11Practice the distinction →

    02 / Change one fact

    Would your answer still hold?

    Use these two short examples to check your reasoning. They are worked examples, separate from the 12 scored questions.

    Financing and notice

    The loan is denied. Is that enough?

    Assume this example's contract allows a deposit refund if financing fails despite a good-faith application, but requires written cancellation notice by the end of day 30.

    Notice given on day 29: With the other conditions met, the buyer has used the cancellation right described in this example.

    Change the notice to day 31.

    The buyer has missed the notice deadline in the stated clause. Loan denial alone does not establish a right to that refund. Check the remaining contract terms and applicable law before deciding the remedy or who receives the deposit.

    Thirty days is an assumption in this example. It is not the financing deadline for every Florida contract.

    F.S. 475.25(1)(d)1.Try Question 9 →

    An option to purchase

    A right to buy becomes an obligation.

    A buyer pays $2,000 for a 90-day option. Before exercise, the buyer may choose whether to buy. The seller must honor a proper exercise under the agreed terms.

    The buyer exercises properly on day 60.

    The relationship becomes a bilateral purchase contract. The buyer has chosen to purchase and is now bound along with the seller. Check the exercise method, notice, and other terms in the option.

    The buyer lets the option expire.

    The buyer has not exercised the purchase right and is not required to buy merely because the buyer paid for the option. Whether any option money is refundable or credited to the price depends on the agreement.

    Allegro v. Pearson (2019)Try Question 7 →

    03 / Know what must be disclosed

    Florida property disclosures: scope and timing

    A form for one kind of transaction is not a rule for every sale. Open a disclosure to see who it applies to, what it covers, and the source.

    Residential flood disclosureAt or before contract execution

    Applies to: A seller of residential real property.

    Use the statutory form. It addresses known flooding that damaged the property during the seller's ownership, flood-related insurance claims, and flood assistance. It also warns that homeowners insurance does not cover flood damage. This is not limited to a mapped flood zone.

    F.S. 689.302Related question →
    Known hidden material defectsDisclose before the buyer commits

    Applies to: The Johnson v. Davis rule for a home seller's known facts.

    The fact must materially affect value, not be readily observable, and be unknown to the buyer. A known concealed roof leak fits. An as-is provision does not remove this disclosure duty or make an inspection a substitute for disclosure.

    Johnson v. Davis (1985)Related question →
    Mandatory HOA membershipBefore the buyer signs

    Applies to: A covered parcel subject to mandatory homeowners' association membership.

    Provide the statutory disclosure summary before signing. If it was not provided, the buyer has a specific right to cancel by written notice within 3 days after receiving it or before closing, whichever comes first. The right ends at closing and cannot be waived. Do not apply this rule to every home purchase or confuse it with condominium disclosures.

    F.S. 720.401
    Lead-based paintBefore the buyer is bound

    Applies to: Most housing built before 1978, subject to federal exemptions.

    Provide the required pamphlet, known lead information, available reports, and contractual disclosure. Buyers also receive a 10-day inspection or risk-assessment opportunity; the parties may agree in writing to a different period, and the buyer may waive the opportunity. Disclosure and the opportunity to inspect are separate requirements.

    EPA lead disclosure requirements
    Radon gas notificationAt or before the purchase contract

    Applies to: The purchase of a building.

    Include the statutory radon notice on at least one document, form, or application executed at or before the contract. The notice warns about possible radon risks. It is not a statement that this particular building has tested positive for radon.

    F.S. 404.056(5)
    Energy-efficiency informationAt or before the buyer signs

    Applies to: Real property with a building for occupancy.

    Give information notifying the purchaser of the option for an energy-efficiency rating. This disclosure requirement does not mean every purchaser must order a rating. Vacant land alone does not meet the building condition in this provision.

    F.S. 553.996
    Property-tax disclosureAt or before contract execution

    Applies to: A prospective purchaser of residential property.

    Provide the required summary in the contract or as an incorporated attachment. The buyer should not assume the seller's current tax bill predicts the buyer's bill. A change of ownership or improvements can produce reassessment and higher taxes.

    F.S. 689.261(1)-(2)
    Pending county code enforcementBefore the covered transfer

    Applies to: An owner transferring property after an initial citation and before the scheduled county-court appearance in the proceeding described by the statute.

    Disclose the proceeding and the new owner's compliance responsibility in writing, and deliver the related documents. A separate notice to the code-enforcement official is due within 5 days after transfer. This is a specific proceeding and transfer rule, not a universal five-day disclosure deadline for every property defect.

    F.S. 125.69(4)(f)
    Community development districtIn the covered initial-sale contract

    Applies to: The initial sale of a parcel or residential unit within the district.

    The statutory warning about additional district taxes and assessments belongs immediately before the purchaser's signature space, in the required prominent type. The provision specifically addresses initial sales; do not describe it as an identical contract-form rule for every resale.

    F.S. 190.048
    Known sanitary sewer lateral defectsBefore contract execution

    Applies to: A seller of real property with a known defect in its sanitary sewer lateral.

    Disclose known defects in the privately owned line connecting the property to the main sewer. This is a separate statutory duty. The statute does not require a seller to invent knowledge or treat a general inspection opportunity as disclosure of a known defect.

    F.S. 689.301

    The exam outline and Course I syllabus identify the disclosure topics. The statutes supply the current duties, including flood and sewer-lateral disclosures. This reference is a study guide, not a complete disclosure packet for every property type.

    Do not assume a three-day cooling-off period.

    The HOA rule concerns a missing required disclosure summary. The federal lead rule gives a specific inspection opportunity. An inspection or financing contingency follows its own contract language. None creates a universal right to cancel every home purchase within three days.

    F.S. 720.401EPA lead disclosure requirements

    04 / Keep the two statutes separate

    Statute of Frauds versus Statute of Limitations

    The Statute of Frauds asks whether a writing is required. The Statute of Limitations asks how long a claimant has to bring a particular action.

    General study periods in F.S. 95.11Scroll sideways for provisions and distinctions.
    Type of actionGeneral periodKeep in mind
    Action founded on a written instrumentF.S. 95.11(2)(b)5 yearsThe general written-contract category; separately listed claims can have different periods.
    Action not founded on a written instrumentF.S. 95.11(3)(j)4 yearsThis period does not make an otherwise unenforceable oral land sale enforceable.
    Specific performanceF.S. 95.11(6)(a)1 yearSeeking the promised performance has its own period, even with a written contract.
    RescissionF.S. 95.11(3)(k)4 yearsA claim to undo the contract is separately listed.

    These periods are not inspection, financing, or cancellation windows. Accrual, tolling, and statutory exceptions can affect an actual filing deadline. F.S. 95.11

    05 / Review every answer

    All 12 Florida contract questions and answers

    Choose a concept to open its question. You can read every explanation and source without finishing the quiz or creating an account.

    Study mode · Every question explained12 questions, answer reasoning, and 36 explanations of the other choices

    Try the question before opening the answer. These original practice items are not actual or recalled Pearson VUE exam questions.

    1. Question 1 · con-1 · Oral sale and the Statute of Frauds

      A buyer and seller shake hands on the sale of a vacant lot for $90,000. Neither signs a contract or memorandum. The buyer has not paid, taken possession, or made improvements. The seller backs out. Under the general Statute of Frauds rule, can the buyer force the sale?

      1. Yes, because a verbal agreement on price and property is enough to force the sale
      2. Yes, because reliance on the seller's promise alone replaces the writing requirement
      3. Generally no, because a land-sale contract requires a signed writing to be enforceable and no exception is shown
      4. No, because vacant land cannot be sold without a survey
      Show answer and explanation

      Answer C. Generally no, because a land-sale contract requires a signed writing to be enforceable and no exception is shown

      F.S. 725.01 generally requires a land-sale agreement, or a sufficient note or memorandum of it, to be in writing and signed by the party against whom enforcement is sought. The question supplies neither a signed writing nor facts supporting a recognized exception. A qualifying claim of part performance can change the analysis, so do not turn this general rule into a statement that every oral land agreement is void.

      Remember: Unenforceable and void mean different things. Also check whether the question supplies facts supporting an exception.

      Why the other choices do not work

      • A. Yes, because a verbal agreement on price and property is enough to force the sale

        Agreeing orally on price and property does not, by itself, satisfy the Statute of Frauds.

      • B. Yes, because reliance on the seller's promise alone replaces the writing requirement

        Reliance alone is not a substitute for the signed writing on these facts. The question supplies no qualifying part-performance facts.

      • D. No, because vacant land cannot be sold without a survey

        A survey may matter under a particular contract, but it is not the reason this oral agreement fails the writing requirement.

      Sources: F.S. 725.01 · Salazar v. Ortiz (2026), part performance

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    2. Question 2 · con-2 · The four essential elements

      Which list matches the four essential elements of a valid contract in Florida's sales associate syllabus?

      1. Earnest money, a licensed broker, a survey, and a closing date
      2. Competent parties, mutual assent (offer and acceptance), legal purpose, and consideration
      3. A written document, a notary, two witnesses, and recording
      4. Offer, counteroffer, acceptance, and contingency
      Show answer and explanation

      Answer B. Competent parties, mutual assent (offer and acceptance), legal purpose, and consideration

      A valid contract needs competent parties, mutual assent, a legal purpose, and consideration. A contract for the sale of an interest in real property must also meet the Statute of Frauds to be enforceable, generally requiring a writing signed by the party to be bound. That writing rule does not apply to every agreement connected with real estate.

      Remember: Earnest money is not an essential element. Consideration is required, but the deposit itself is not.

      Why the other choices do not work

      • A. Earnest money, a licensed broker, a survey, and a closing date

        An earnest-money deposit, broker, survey, and closing date are not the four essential elements of every valid contract.

      • C. A written document, a notary, two witnesses, and recording

        Writing requirements depend on the transaction. Notarization, witnesses, and recording are not universal contract essentials.

      • D. Offer, counteroffer, acceptance, and contingency

        A counteroffer and a contingency are optional features of negotiations or an agreement, not requirements for every contract.

      Sources: FREC Course I syllabus, Section 11, essential elements

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    3. Question 3 · con-3 · What a counteroffer changes

      A buyer offers $320,000 for a home and gives the seller until Friday to accept. On Tuesday, the seller communicates a counteroffer of $335,000. The buyer rejects it and does not renew the original offer. On Wednesday, the seller tries to accept the original $320,000 offer. Is the buyer bound?

      1. Yes, because the seller responded before the Friday deadline
      2. Yes, because only the buyer can terminate the buyer's own offer
      3. No, because the seller's counteroffer rejected and terminated the original offer
      4. No, because parties may never negotiate again after a counteroffer
      Show answer and explanation

      Answer C. No, because the seller's counteroffer rejected and terminated the original offer

      A counteroffer ordinarily rejects the original offer and proposes new terms. The Friday deadline does not keep the original offer alive after the seller communicates the counteroffer. The parties could make a new agreement at $320,000, but the seller cannot bind the buyer by accepting an offer that has already been terminated.

      Remember: An expiration date matters only while the offer remains alive. A counteroffer terminates it before that date.

      Why the other choices do not work

      • A. Yes, because the seller responded before the Friday deadline

        Friday was the outside acceptance deadline for a live offer. It did not undo the intervening counteroffer.

      • B. Yes, because only the buyer can terminate the buyer's own offer

        A seller can reject a buyer’s offer. A communicated counteroffer ordinarily does so.

      • D. No, because parties may never negotiate again after a counteroffer

        The parties remain free to negotiate a new agreement. Rejection ends the old offer, not their ability to do business.

      Sources: Behnke v. Bank of New York Mellon (Fla. 4th DCA 2023), counteroffers

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    4. Question 4 · con-4 · The licensee’s drafting limits

      A sales associate is helping the parties complete a standard purchase contract in a transaction the associate handled. Which action stays within the licensee's permitted role?

      1. Draft a custom clause that decides a disputed legal right
      2. Select the remedy that gives the buyer the strongest legal position
      3. Complete the form's factual blanks without giving legal advice or charging a separate drafting fee
      4. Prepare the deed and mortgage because they arise from the same sale
      Show answer and explanation

      Answer C. Complete the form's factual blanks without giving legal advice or charging a separate drafting fee

      A licensee may complete the factual blanks of a sale contract as an incident to a transaction the licensee handles, without a separate drafting charge. That limited role does not authorize legal advice, deciding disputed rights, or preparing deeds and mortgages for others merely because they relate to the sale. Send questions about custom legal wording or legal remedies to an attorney.

      Remember: Permission to complete a sale contract is limited. It does not turn a real estate license into authority to practice law.

      Why the other choices do not work

      • A. Draft a custom clause that decides a disputed legal right

        Deciding a disputed legal right through a custom clause goes beyond filling factual blanks.

      • B. Select the remedy that gives the buyer the strongest legal position

        Choosing a legal remedy for the buyer calls for legal advice, not routine form completion.

      • D. Prepare the deed and mortgage because they arise from the same sale

        A real estate license alone does not authorize preparing deeds and mortgages for other people.

      Sources: Keyes Co. v. Dade County Bar Ass'n, 46 So. 2d 605 (Fla. 1950)

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    5. Question 5 · con-5 · Specific performance and remedies

      A seller signs a valid contract to sell a unique waterfront home, then refuses to close because she received a higher offer. The buyer wants the house itself. Which remedy would the buyer ask a court to grant?

      1. liquidated damages
      2. specific performance
      3. rescission
      4. novation
      Show answer and explanation

      Answer B. specific performance

      Specific performance asks a court to require the promised conveyance. Real property is treated as unique, so money may not provide an adequate remedy. The buyer still must prove entitlement to this equitable relief; it is not automatic. F.S. 95.11(6)(a) places an action for specific performance in the one-year limitations category, separate from the usual five-year rule for actions founded on a written contract.

      Remember: The requested outcome controls the answer. A buyer seeking the property itself is asking for specific performance, not a money remedy.

      Why the other choices do not work

      • A. liquidated damages

        Liquidated damages are an agreed money remedy for a specified breach, subject to enforceability. They do not deliver the house.

      • C. rescission

        Rescission seeks to undo the contract, rather than require the promised conveyance.

      • D. novation

        Novation replaces an obligation or party by agreement. It is not a court order compelling the seller to close.

      Sources: F.S. 95.11(6)(a) · Salazar v. Ortiz (2026), uniqueness of land

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    6. Question 6 · con-6 · Assignment versus novation

      Buyer A assigns her purchase contract to Buyer B. Later, all three parties sign a new agreement that substitutes Buyer B for Buyer A entirely and releases Buyer A from any further liability. This release of the original party is accomplished through

      1. assignment
      2. novation
      3. rescission
      4. subrogation
      Show answer and explanation

      Answer B. novation

      A novation replaces an original party or obligation with the consent required for the substitution and releases the original party. An assignment transfers contractual rights, while related duties may be delegated. Neither step alone proves that the other contracting party released Buyer A. The express three-party release does.

      Remember: Look for consent and release. An assignment can transfer rights without erasing the assignor's potential liability.

      Why the other choices do not work

      • A. assignment

        Assignment transfers rights. It does not by itself establish that the seller released Buyer A from liability.

      • C. rescission

        Rescission cancels or unwinds the agreement. Here, a valid replacement agreement substitutes Buyer B and releases Buyer A.

      • D. subrogation

        Subrogation concerns stepping into another person’s rights in a different legal setting. The express substitution and release here are a novation.

      Sources: Schroer v. Crumdale Partners, LLC (Fla. 4th DCA 2024)

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    7. Question 7 · con-7 · Options before and after exercise

      For $2,000, a seller gives a buyer the right, but not the obligation, to purchase a property at a set price within 90 days. The seller must sell if the buyer exercises the right, but the buyer is not required to buy. This is

      1. a bilateral contract, because both parties make promises
      2. a unilateral option contract, because only the seller is bound to perform if the buyer chooses to exercise
      3. an exclusive right of sale listing
      4. a voidable contract, because only one party is obligated
      Show answer and explanation

      Answer B. a unilateral option contract, because only the seller is bound to perform if the buyer chooses to exercise

      Before exercise, the option gives the buyer a choice and binds the seller to honor that choice under the agreed terms. The $2,000 supports the option; it does not obligate the buyer to purchase. A proper, timely exercise changes the relationship into a bilateral purchase contract. Read how and when the option must be exercised, not just its price.

      Remember: Before exercise: a right to buy. After proper exercise: a binding purchase obligation for both sides.

      Why the other choices do not work

      • A. a bilateral contract, because both parties make promises

        Before exercise, the buyer has not promised to purchase. Payment for the option is not a promise to buy.

      • C. an exclusive right of sale listing

        A listing agreement employs a broker to market property. This agreement gives a buyer a purchase right.

      • D. a voidable contract, because only one party is obligated

        A unilateral option supported by consideration is not voidable merely because the buyer may choose not to exercise.

      Sources: Florida contract law, option contracts

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    8. Question 8 · con-8 · Florida’s residential flood disclosure

      A seller is about to sign a contract to sell a Florida single-family home. When must the seller provide the statutory residential flood disclosure to the buyer?

      1. Only if the property is in a FEMA special flood hazard area
      2. At or before the time the sales contract is executed
      3. Within three business days after contract acceptance
      4. At closing, together with the deed
      Show answer and explanation

      Answer B. At or before the time the sales contract is executed

      F.S. 689.302 requires the residential seller to complete and provide the flood disclosure at or before contract execution. The current form covers known flooding that damaged the property during the seller’s ownership, flood-related insurance claims, and assistance received for flood damage. Its insurance warning explains that homeowners insurance does not cover flood damage. A flood-zone label does not decide whether this disclosure is required.

      Remember: This is a pre-contract disclosure. Waiting until closing is too late, and the statute does not make the duty depend on a flood-zone label.

      Why the other choices do not work

      • A. Only if the property is in a FEMA special flood hazard area

        The statute applies to residential real property; it does not restrict the duty to a particular FEMA flood zone.

      • C. Within three business days after contract acceptance

        The statute does not grant three business days after acceptance to supply this disclosure.

      • D. At closing, together with the deed

        Providing the disclosure with the deed at closing misses the contract-execution deadline.

      Sources: F.S. 689.302

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    9. Question 9 · con-9 · Financing contingencies and notice

      A signed contract lets the buyer cancel and recover the deposit if a good-faith mortgage application does not produce financing at no more than 7 percent within 30 days. Within that period, the lender denies the loan despite the buyer’s timely cooperation, and the buyer gives the cancellation notice required by the contract. What follows under this clause?

      1. The buyer forfeits the earnest money to the seller as liquidated damages
      2. The buyer may cancel and recover the earnest money, because the financing contingency was not satisfied
      3. The seller may sue the buyer for specific performance to force the purchase
      4. The contract automatically converts to an all-cash sale
      Show answer and explanation

      Answer B. The buyer may cancel and recover the earnest money, because the financing contingency was not satisfied

      The facts satisfy the stated financing contingency and its notice requirement. The buyer applied and cooperated in good faith, the specified financing was unavailable, and the buyer properly elected to cancel. The clause therefore allows the deposit to be returned. F.S. 475.25(1)(d)1. also permits a licensee holding escrow to return it for a good-faith failure to satisfy a financing clause without the usual FREC notice and settlement procedures. A loan denial alone does not establish compliance with every contract.

      Remember: Never assume every financing clause works the same way. Read the application, notice, timing, and refund language given in the question.

      Why the other choices do not work

      • A. The buyer forfeits the earnest money to the seller as liquidated damages

        A permitted cancellation under the stated contingency is not the buyer breach assumed by this forfeiture answer.

      • C. The seller may sue the buyer for specific performance to force the purchase

        The facts give the buyer a contractual right to cancel, so the seller cannot ignore that condition and force this purchase.

      • D. The contract automatically converts to an all-cash sale

        Failure of financing does not rewrite the agreement into an all-cash sale.

      Sources: Contract terms; F.S. 475.25(1)(d)1.

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    10. Question 10 · con-10 · Electronic signatures

      A buyer and seller agree to conduct their transaction electronically and sign the purchase contract through a recognized electronic-signature platform. Is the contract unenforceable solely because the signatures are electronic?

      1. Yes, because every Florida real estate sale contract requires wet-ink signatures
      2. Yes, unless a notary watches both parties sign in person
      3. No, because an electronic record and signature can satisfy writing and signature requirements when the governing conditions are met
      4. No, but only when the purchase price is below $500,000
      Show answer and explanation

      Answer C. No, because an electronic record and signature can satisfy writing and signature requirements when the governing conditions are met

      Florida's Uniform Electronic Transaction Act provides that a record, signature, or contract may not be denied legal effect solely because it is electronic. When the parties have agreed to transact electronically, an electronic record can satisfy a writing requirement and an electronic signature can satisfy a signature requirement.

      Remember: Electronic form does not erase other contract requirements. The agreement still needs valid terms, attribution, and compliance with any law that applies to the transaction.

      Why the other choices do not work

      • A. Yes, because every Florida real estate sale contract requires wet-ink signatures

        Florida law recognizes qualifying electronic signatures. Wet ink is not universally required for a purchase contract.

      • B. Yes, unless a notary watches both parties sign in person

        An ordinary purchase contract does not require in-person notarization merely because it is signed electronically.

      • D. No, but only when the purchase price is below $500,000

        The electronic-transactions rule has no $500,000 purchase-price ceiling.

      Sources: F.S. 668.50(5) and (7), Uniform Electronic Transaction Act

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    11. Question 11 · con-11 · A minor’s voidable contract

      An unemancipated 17-year-old signs a contract to buy nonessential vacant land without a guardian acting for the minor. Under the general Florida contract rule, the agreement is

      1. void from the beginning and incapable of ratification
      2. voidable by the minor, rather than automatically void
      3. fully enforceable against the minor because real estate is involved
      4. unenforceable by either party only until the minor turns 21
      Show answer and explanation

      Answer B. voidable by the minor, rather than automatically void

      A minor’s nonessential contract is generally voidable at the minor’s election, rather than void from the start. The minor may disaffirm it, subject to the rules on exceptions and ratification. The adult seller does not gain the same right to cancel simply because the buyer is a minor. Florida’s general age of majority is 18; older court decisions may discuss the former age of 21.

      Remember: Void and voidable are not synonyms. A voidable agreement remains capable of being affirmed or avoided by the protected party.

      Why the other choices do not work

      • A. void from the beginning and incapable of ratification

        Voidable contracts can be ratified. Calling this agreement automatically void erases that distinction.

      • C. fully enforceable against the minor because real estate is involved

        Real estate does not remove the protection given to this minor on the stated facts.

      • D. unenforceable by either party only until the minor turns 21

        Florida’s general age of majority is 18. The rule is voidability, not a blanket bar on enforcement until age 21.

      Sources: Lee v. Thompson, voidability and ratification · F.S. 743.07, age of majority

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    12. Question 12 · con-12 · Known hidden material defects

      Before signing a contract, a Florida home seller knows that a concealed roof defect causes serious leaks during heavy rain. The defect materially affects value, is not readily observable, and is unknown to the buyer. The seller must

      1. remain silent because Florida follows caveat emptor for every residential sale
      2. disclose the known material fact to the buyer
      3. disclose it only if the buyer orders a roof inspection
      4. wait until after closing and notify the buyer in writing
      Show answer and explanation

      Answer B. disclose the known material fact to the buyer

      Under Johnson v. Davis, a residential seller who knows of a fact that materially affects the property's value, is not readily observable, and is not known to the buyer must disclose it. A concealed defect that causes serious leaks fits the facts the rule is designed to address.

      Remember: An as-is clause or the buyer's inspection opportunity does not create a safe answer when the question gives all elements of the Johnson disclosure duty.

      Why the other choices do not work

      • A. remain silent because Florida follows caveat emptor for every residential sale

        Johnson v. Davis rejects that blanket caveat-emptor answer for a seller’s known, hidden residential defect that materially affects value.

      • C. disclose it only if the buyer orders a roof inspection

        The seller’s duty does not depend on the buyer ordering an inspection when the facts meet the disclosure rule.

      • D. wait until after closing and notify the buyer in writing

        Disclosure after closing is too late to let this buyer consider the known defect when deciding whether to contract.

      Sources: Johnson v. Davis, 480 So. 2d 625 (Fla. 1985)

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    06 / Check the whole outline

    What else belongs in your contracts review?

    The published outline has nine headings for this area. This map shows what the free set samples and what still deserves study.

    Preparation of contracts

    In this resource: The licensee's role in completing a sale form.

    Also review: When legal drafting, interpretation, and advice belong with an attorney.

    Question 4
    Essentials of a contract

    In this resource: Formation elements and a minor's capacity.

    Also review: Offer and acceptance, legality, consideration, and other capacity issues.

    Question 2Question 11
    Statute of Frauds

    In this resource: An oral land sale and electronic signatures.

    Also review: Which transactions need a writing, who must sign, and recognized exceptions.

    Question 1Question 10
    Statute of Limitations

    In this resource: Specific performance, plus the reference table above.

    Also review: Different claims have different periods; do not use a litigation limit as a contract cancellation period.

    Question 5
    Transfer of real property

    In this resource: Related to the purchase scenarios; not directly tested here.

    Also review: Equitable interest under a contract versus legal title, deed requirements, and the closing obligations.

    Contract categories

    In this resource: Unenforceability, voidability, and a unilateral option.

    Also review: Express versus implied, bilateral versus unilateral, and executed versus executory.

    Question 1Question 7Question 11
    Contract negotiation

    In this resource: A counteroffer that ends the original offer.

    Also review: Offeror and offeree, acceptance, rejection, withdrawal, expiration, and communication.

    Question 3
    Termination of contracts

    In this resource: Remedies, novation, and a financing contingency.

    Also review: Performance, mutual agreement, breach, assignment restrictions, and remedy provisions.

    Question 5Question 6Question 9
    Contracts important to real estate

    In this resource: Options, purchase contracts, flood disclosure, and known defects.

    Also review: Listing types, buyer-broker agreements, compensation and procuring cause, sale-contract terms, and the other required disclosures.

    Question 7Question 8Question 12

    DBPR exam outline, Section XI supplies the weight and headings. FREC Course I syllabus, Section 11 supplies the broader learning objectives. Twelve questions cannot test them all.

    How to reason through a contract scenario

    Follow the transaction in order. Was there an offer that could still be accepted? Did the parties agree on the essential terms? Is the agreement enforceable? Only then decide what a missed deadline or refusal to close means.

    Two details often decide the answer: who has the right to act, and what must happen first. A minor may have a right to disaffirm. An option holder may choose whether to buy. A financing clause may permit cancellation only after the buyer applies in good faith and gives the required notice.

    Use the contract language supplied in the question. A 15-day inspection period or a 30-day financing period is not a universal Florida deadline. Keep those agreed periods separate from statutory disclosure duties and the time allowed to bring a lawsuit.

    Apply the rule in another setting.

    Pair contract terms with escrow duties and property disclosures, then try a mixed exam.

    Questions about contracts practice

    Frequently asked questions

    How many contract questions are on the Florida real estate exam?

    Real Estate Contracts carries 12% of the published DBPR sales associate exam outline, about 12 questions on the 100-question exam. It is tied with Brokerage Activities for the largest weighting. These 12 practice questions sample that area; they do not cover every learning objective.

    What are the four essential elements of a valid contract?

    The FREC sales associate syllabus lists contractual capacity, offer and acceptance, a legal purpose, and consideration. Earnest money is not a separate essential element. A land-sale contract also generally needs a signed writing to be enforceable under the Statute of Frauds.

    Does a Florida real estate sales contract have to be in writing?

    Generally, yes. F.S. 725.01 requires a signed written agreement or sufficient memorandum for enforcement of a land-sale contract. Recognized exceptions, including qualifying part performance, can affect the result. An oral agreement is not automatically void merely because it fails this writing rule.

    What is the difference between void, voidable, and unenforceable?

    Void means the agreement has no legal effect. Voidable means a protected party may avoid an otherwise operative agreement, as with a minor’s nonessential contract under the general rule. Unenforceable means a legal barrier prevents court enforcement. A writing defect under the Statute of Frauds is not the same thing as an illegal bargain.

    Does a counteroffer cancel the original offer?

    A communicated counteroffer ordinarily rejects the original offer and proposes different terms. An acceptance deadline does not revive that rejected offer. The original offeror can renew it, or the parties can reach a new agreement.

    Does an assignment release the original buyer?

    Not by itself. Assignment transfers rights, and related duties may be delegated. A novation requires the necessary agreement to substitute a valid new obligation and extinguish the old one. Check the contract’s assignment restrictions and whether the seller actually released the original buyer.

    Does a mortgage denial mean the buyer gets the deposit back?

    It depends on the financing clause and the buyer’s compliance. Check the required application, good-faith effort, loan terms, deadline, and cancellation notice. The example in this set supplies those facts. F.S. 475.25(1)(d)1. permits a licensee holding escrow to return it for a good-faith failure to meet the financing clause without the usual FREC notice and settlement procedures.

    Is there a three-day right to cancel every Florida home purchase?

    No. Do not assume that every purchase contract has a three-day cooling-off period. A right to cancel must come from the contract or an applicable law. For example, F.S. 720.401 provides a specific right when a required HOA disclosure summary was not delivered before signing. That is different from a negotiated inspection contingency.

    How long do you have to sue on a contract in Florida?

    The general study rules in F.S. 95.11 are five years for an action founded on a written instrument, four years for an action not founded on a written instrument, and one year for specific performance. Rescission is separately listed in the four-year category. These are different claims, and accrual rules or exceptions can change the deadline in an actual dispute.

    When is Florida’s residential flood disclosure due?

    At or before execution of the sales contract. The current form addresses known flooding that damaged the property during the seller’s ownership, flood insurance claims, and flood assistance. It also warns that homeowners insurance does not cover flood damage. The duty is not limited to properties in a mapped high-risk flood zone.

    Does selling a Florida home as is remove the duty to disclose defects?

    No. An as-is provision does not remove the Johnson v. Davis duty to disclose known facts that materially affect the home’s value, are not readily observable, and are unknown to the buyer. Repair obligations and disclosure duties answer different questions.

    Are these actual Florida exam questions, and can I use them free?

    They are original Pass Florida practice questions, not copied or recalled Pearson VUE items. All 12 questions, correct-answer explanations, and 36 explanations of incorrect choices are free without an account. Pass Florida’s mobile and web apps offer a larger question bank and full-length timed practice.

    Sources and editorial review

    Check the authority behind the answer.

    Published by Pass Florida. Reviewed on for rules in effect through .

    The review checked each answer and rejected choice against Florida statutes, court opinions, and the FREC syllabus. The outline supplies exam weights; it does not replace the law. The flood-disclosure explanation uses the form amended in 2025.

    Read the opinion itself when following a case link. Older decisions remain useful for contract principles, but their historical facts may use old rules, such as a former age of majority. Current statutes and any later effective dates must be checked separately.

    Found an error? Use the correction link under the question or send the question ID and supporting source.

    Independent exam preparation. No affiliation with DBPR, FREC, or Pearson VUE. These examples do not decide rights under an actual purchase contract.

    Key terms for contracts

    Review a definition, worked example, or common exam trap before your next quiz.