Real estate contracts and mandatory disclosures in Florida
Last reviewed: November 2026
Contracts are exam area XI and carry 12% of the Florida sales associate exam, tied for the largest area. The questions fall into two groups: general contract law (what makes a contract valid, enforceable, void or voidable) and Florida's mandatory disclosures, such as the radon notice, the lead-based paint disclosure and the property tax disclosure summary. This page covers both, with the statute for each Florida rule.
Essentials of a valid contract
- Offer and acceptance (mutual assent): a counteroffer rejects the original offer.
- Consideration: something of value exchanged by each side.
- Legal capacity: parties of legal age and sound mind. A contract signed by a minor is generally voidable by the minor.
- Lawful purpose.
For real estate, add a fifth requirement: the statute of frauds. In Florida, no action can be brought on a contract for the sale of land, or on a lease longer than 1 year, unless the agreement or a note or memorandum of it is in writing and signed by the party to be charged (s. 725.01, F.S.).
Contract status terms
| Term | Meaning |
|---|---|
| Valid | All essentials present; binding and enforceable |
| Void | No legal effect at all (for example, an illegal purpose) |
| Voidable | Valid until one party chooses to cancel (for example, a minor's contract) |
| Unenforceable | Valid between the parties but a court will not enforce it (for example, an oral sale contract) |
| Executory / executed | Not yet fully performed / fully performed |
Option contracts
In an option, the owner (optionor) gives the buyer (optionee) the right to buy at a set price within a set time, in exchange for consideration. Only the optionor is bound; the optionee may choose not to buy. It is a unilateral contract until exercised.
Listing agreement requirements in Florida
A written listing agreement must include (s. 475.25(1)(r), F.S.):
- a definite expiration date;
- a description of the property;
- the price and terms;
- the fee or commission;
- a proper signature of the principal(s).
The principal must receive a legible, signed, true and correct copy within 24 hours. The agreement may not require the seller to notify the broker of an intention to cancel after the expiration date, so automatic renewal clauses of that kind are prohibited.
Common listing types: exclusive right of sale (broker is paid no matter who sells), exclusive agency (broker is not paid if the owner sells without help) and open listing (only the broker who procures the buyer is paid).
Florida mandatory disclosures
| Disclosure | When | Source |
|---|---|---|
| Radon gas notice | On at least one document at or before the contract for sale and purchase of any building, or a rental agreement | s. 404.056(5), F.S. |
| Lead-based paint | Before the buyer signs a contract or the renter signs a lease, for most housing built before 1978 | Federal rule, EPA/HUD |
| Property tax disclosure summary | At or before execution of the contract for residential property | s. 689.261(1), F.S. |
| HOA disclosure summary | Before executing the contract, for a community with a mandatory homeowners' association | s. 720.401(1), F.S. |
| Single agent or no brokerage relationship notice | Single agent: before a listing or representation agreement or a showing, whichever comes first. No brokerage: before showing property (residential sales) | s. 475.278(3)(b), (4)(b), F.S. |
Radon gas
The notice has prescribed wording that starts "RADON GAS: Radon is a naturally occurring radioactive gas…" and points the reader to the county health department. It applies to sales and rentals of any building, not only homes. The only exception in the subsection is residential transient occupancy (as described in s. 509.013) of 45 days or less (s. 404.056(5)).
Lead-based paint disclosure
According to EPA, before a contract or lease on most pre-1978 housing, sellers, landlords and their agents must: give the "Protect Your Family From Lead in Your Home" pamphlet; disclose known lead-based paint and hazards; provide available records and reports; and include a Lead Warning Statement. Buyers get a 10-day opportunity for an inspection or risk assessment, which the parties can change in writing or the buyer can waive. Signed disclosures are kept for 3 years after the sale is completed or the lease begins. Exempt: housing built after 1977, zero-bedroom units, leases of 100 days or less and foreclosure sales, among others. Agents must inform sellers of their obligations and share responsibility for compliance.
Property tax disclosure summary
Buyers of residential property must be told, in substance, not to rely on the seller's current property taxes, because a change of ownership or improvements trigger reassessment (s. 689.261(1)). Unless the summary is in the contract, the seller provides it (s. 689.261(2)). Starting February 1, 2027, a property shown on an online listing platform must include estimated property taxes, which may not be calculated from the current owner's assessment or taxes, and printed listing materials may not include the current owner's taxes (s. 689.261(3)(b), (c)). Property tax math is on the real estate math page.
HOA disclosure summary
If the summary is not given before the buyer signs, the buyer may void the contract by written notice within 3 days after receiving it or before closing, whichever comes first. The right cannot be waived and ends at closing (s. 720.401(1)(c)). The section does not apply to associations regulated under chapters 718, 719, 721 or 723 (condominiums, cooperatives, timeshares, mobile home parks) (s. 720.401(2)).
What is not a material fact in Florida
Under s. 689.25, F.S., the fact that a property was the site of a homicide, suicide or death, and the fact that an occupant has or had HIV or AIDS, are not material facts that must be disclosed. No cause of action arises against the owner or a chapter 475 licensee for not disclosing them.
Exam traps
- Statute of frauds: written and signed by the party to be charged, not necessarily by both parties.
- Radon applies to commercial buildings and rentals too.
- Lead: built before 1978. The 10-day inspection right is for buyers, not renters.
- Listing copy: within 24 hours. No "notify us to cancel" clause after expiration.
- HOA: 3 days, and the right ends at closing.
Practice question
A Florida listing agreement is signed with no expiration date. What is the problem?
A) None, if the seller agrees. B) It violates s. 475.25(1)(r). C) It becomes an open listing. D) It is valid for 1 year by law.
Answer: B. A written listing agreement must have a definite expiration date.
Test yourself
Area XI has six questions in the free Florida practice test. See also brokerage relationship disclosures and escrow deposits. For more contract questions and timed exams, see the paid question bank.
Real Estate Drill is an independent study tool, not legal advice. We are not affiliated with FREC, DBPR, Pearson VUE, EPA or HUD.