AGENCY & CONTRACTS CHEAT SHEET

Florida RE Salesperson Exam

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THREE BROKERAGE RELATIONSHIPS

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Memory Aid: DLCO FAS = Seven fiduciary duties of Single Agent

• Dealing honestly, Loyalty, Confidentiality, Obedience, Full disclosure, Accounting, Skill/care/diligence

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SINGLE AGENT vs. TRANSACTION BROKER

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Txn Broker Confidentiality LIMITS: Cannot disclose (without consent)—

• Seller's motivation / price floor

• Buyer's motivation / price ceiling

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DISCLOSURE TIMING & REQUIREMENTS

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⚠️ NOT at closing — disclosure must come FIRST

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DESIGNATED SALES ASSOCIATE (DSA)

✓ Allowed if:

• One buyer + one seller in SAME transaction

• Both sophisticated parties (net worth > $1M) OR non-residential only

• Broker designates separate associates

✗ NOT available for: Typical residential deals with average buyer/seller

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CONTRACT ESSENTIALS (6 Elements)

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⚠️ Statute of Frauds (FS 725.01): ALL real estate contracts MUST be written & signed

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CONTRACT STATUS QUICK-ID

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OFFER & ACCEPTANCE RULES

Valid Offer must be:

• Definite (clear price, property, terms)

• Communicated to offeree

• Intent to be bound

Valid Acceptance must be:

• Unconditional (ANY change = counteroffer)

• Communicated

• Before expiration/revocation

Counteroffer Effect: Kills original offer → original offeror now free to accept, reject, or counter

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CONTINGENCIES & CONDITIONS

Common FL Contingencies:

• Financing approval (no approval = buyer can back out)

• Inspection (within stated period)

• Appraisal (property value ≥ purchase price)

• Title examination (clear title required)

Remove contingency = Remove condition; buyer loses protection

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DEFENSES & DEFECTS (Contract Voidability)

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Innocent/Negligent Misrep.: Buyer may rescind or sue for damages (NOT specific performance)

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KEY FLORIDA STATUTES

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Relationship	Default?	Fiduciary?	Key Duty	Best For
Single Agent	No	YES	Loyalty + advocacy for one party	Exclusive representation
Transaction Broker	YES (presumed)	NO	Facilitate deal neutrally	Most FL transactions
No Brokerage	No	NO	Honesty + disclosure only	Minimal involvement
Duty	Single Agent	Txn Broker
Loyalty	✓ Owes it	✗ Does NOT
Obedience	✓ Yes	✗ No
Confidentiality (full)	✓ Yes	✗ Limited only*
Present all offers	✓ Yes	✓ Yes
Disclose material facts	✓ Yes	✓ Yes
Advocate for client	✓ Yes	✗ No
When	To Whom	Method
Before/at listing or buyer agreement	Seller/buyer	Written statutory form
Before showing property	Buyer/seller	Signed disclosure
Every transaction	All parties	Use FS 475 statutory language
Element	Must Have	Note
Offer & Acceptance	Definite terms + unconditional acceptance	Counteroffer = new offer; kills original
Consideration	Something of value exchanged	Price ≠ must equal; $10 is legally sufficient
Competent Parties	Age 18+, mental capacity	Contracts with minors are VOID
Legal Purpose	Lawful object	Illegal = VOID
Consent (No Defects)	No fraud, duress, mistake	Defects = VOIDABLE
In Writing	REQUIRED (Statute of Frauds)	Oral real estate contract = UNENFORCEABLE
Status	Enforceable?	Example
Void	NO / ever	Illegal purpose; minor as party
Voidable	YES / until rescinded	Fraud, duress, undue influence
Unenforceable	NO / by court	Oral contract (Statute of Frauds)
Valid	YES	Standard signed purchase agreement
Defect	Definition	Result
Fraud	Intentional misrepresentation	Voidable
Misrepresentation	False statement (intent unclear)	Voidable
Duress	Threats/coercion	Voidable
Undue Influence	Unfair persuasion	Voidable
Mutual Mistake	Both parties wrong re: material fact	Voidable
Statute	Topic
FS 475.278	Brokerage relationships & fiduciary duties
FS 725.01	Statute of Frauds (writing requirement)
FS 475.2755	Designated Sales Associate rules

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HIGH-YIELD EXAM TRIGGERS:

• Florida = transaction broker default (not agency)

• Disclosure BEFORE showing, NOT at closing

• Oral real estate contract = unenforceable

• Counteroffer = kills original offer

• DSA = sophisticated parties only (>$1M net worth)

• No Statute of Frauds for verbal listing = unenforceable vs. broker