Core Exam Prep 3 Real Estate

The correct answer is that the death of Wilson constituted a revocation of the offer. This means that since Mr. Wilson passed away before being notified of the acceptance by the seller, the offer is no longer valid. In general, an offer can be revoked by the offeror at any time before it has been accepted, and in this case, Wilson's death acted as a revocation of the offer. Therefore, the offer and acceptance do not constitute an enforceable contract.

In this situation, the seller has the right to cancel the transaction without being held liable for the commission. The fact that the buyer is the brother of the broker and this relationship was not disclosed in the offer raises concerns about potential conflicts of interest and unethical behavior. To protect their interests, the seller can choose to cancel the transaction and avoid any financial obligations towards the broker.

A general lien is a type of lien that gives the creditor the right to seize and sell any property owned by the debtor in order to satisfy the debt. Unlike a specific lien, which is limited to a particular property, a general lien applies to all of the debtor's property. In this case, the court has imposed a lien on all of the principal's property, indicating that it is a general lien.

In appraising to determine value by net income and percentage of reasonable return on an investment, capitalization is the correct answer. Capitalization is a method used to estimate the value of an income-producing property by dividing the net operating income (NOI) by the capitalization rate. The capitalization rate is determined by considering factors such as the property's risk, market conditions, and desired return on investment. This approach allows appraisers to estimate the property's value based on its income potential and the market's expectations for returns on similar investments.

Consideration refers to something of value that is exchanged between parties in a contract. It is an essential element in a contract as it indicates that both parties have given something in return for the agreement. The terms "valuable," "adequate," and "good sufficient" all suggest that consideration is being provided in a contract. Therefore, the correct answer is consideration.

The lower the loan to value ratio, the higher the equity. This is because the loan to value ratio measures the amount of the loan compared to the value of the asset being financed. A lower ratio indicates that there is a higher percentage of equity in the asset, meaning that the borrower has more ownership and less debt.

The correct answer is "All of the above." This means that ownership rights and interests can be conveyed absolutely, there can be liens or charges on land, and there can be estates or fees associated with the property. In other words, all of these options are possible ways in which ownership rights and interests can be established or transferred.

When appraising a property on a hillside and noticing cracks on the walls, ordering a soil engineer report is the best recommendation. This is because cracks on the walls can indicate potential soil instability or movement, which can be a serious issue for the property's structural integrity. A soil engineer report will provide a detailed analysis of the soil conditions, including any potential risks or problems that may affect the property. This report will help the appraiser make an informed decision about the property's value and any necessary repairs or precautions that need to be taken.

Economic obsolescence refers to a reduction in the value of a property due to external factors. Zoning changes can lead to economic obsolescence because they can restrict or limit the use of the property, thereby reducing its potential income or market value. Termite damage, bad architectural design, and negligent care are examples of physical obsolescence, which refer to the deterioration of the property itself.

The escrow is allowed to disburse the deposit in all of the mentioned scenarios - agreement of the parties, after a judgment, and arbitration. This means that if the parties involved in the real estate transaction agree to disburse the deposit, or if a judgment or arbitration decision requires the deposit to be disbursed, the escrow can proceed with releasing the funds.

The correct answer is "Agreement." This means that the agent's commission for negotiating a real property lease is determined by an agreement between the parties involved. The specific terms and conditions regarding the commission will be outlined and agreed upon in this agreement. This allows for flexibility and negotiation between the agent and the parties involved in the lease.

Prescriptive easement refers to the legal right to use another person's property without permission, which is acquired through continuous and uninterrupted use for a specific period of time. This type of easement is created when someone openly and notoriously uses another person's property without their permission for a certain period, typically ranging from 5 to 20 years, depending on the jurisdiction. Therefore, the correct answer is "Prescriptive" because it describes the easement for non-use that is acquired through long-term unauthorized use of someone else's property.

The purpose of the Truth-in-Lending Act is to ensure that consumers are provided with clear and accurate information about the terms and costs of credit. It aims to promote transparency and protect consumers from deceptive practices by requiring lenders to disclose key information such as interest rates, fees, and repayment terms. This allows buyers to make informed decisions and compare different credit options effectively.

The buyer's broker in a buyer's agency does not have an agency relationship with the seller or the listing broker, which means they are not responsible or liable for their actions. This means that the buyer's broker is not accountable for any misconduct or wrongdoing on the part of the seller or the listing broker.

When a broker is an agent of the seller, they owe a duty of fair and honest dealing to the buyer. This means that the broker is obligated to act in a fair and honest manner when representing the seller's interests, even though they are not directly representing the buyer. This duty includes being truthful and transparent in all dealings with the buyer, and ensuring that the buyer is treated fairly throughout the transaction. The broker must also avoid any conflicts of interest that may arise between the seller and the buyer.

The correct answer is that the broker violates the California Fair Housing Act (the Rumford Act) if he gives the seller the requested information. This is because the act prohibits discrimination in housing based on factors such as race, ethnicity, and national origin. Inquiring about the ethnic background of a prospective buyer is a form of discriminatory behavior and goes against the principles of fair housing. The broker should not provide this information to the seller to ensure compliance with the law.

Homestead is not related to income tax. Homestead refers to a property that is owned and occupied as a family home, and it is often eligible for certain tax benefits or exemptions. However, income tax is a tax imposed on the income of individuals or entities, and it is not directly related to the concept of homestead. Therefore, homestead is the correct answer as it is not associated with income tax.

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When the buyer is allowed to take possession of the property before the transfer of title, it is important for both the buyer and seller to have a legal agreement in place. This agreement is known as an Interim Occupancy agreement. This agreement outlines the terms and conditions of the buyer's temporary possession of the property, including any rent or fees that may be applicable. It helps protect the rights and responsibilities of both parties during the interim period until the title is officially transferred.

MMI stands for Mortgagee's Mortgage Insurance, which is a type of insurance provided by the Federal Housing Administration (FHA). This insurance protects the mortgagee (the lender or the financial institution providing the mortgage) in case the borrower defaults on the loan and the property goes into foreclosure. It helps to reimburse the mortgagee for any losses they may incur due to the foreclosure process. Therefore, the correct answer is "Insures mortgagee in case of foreclosure."

If a licensee fails to renew his or her license prior to its expiration date, they may still renew it within two years by submitting the proper application and paying the appropriate late fee. This suggests that there is a grace period of two years during which the licensee can still renew their license without having to file a new application or take a new license examination. However, it is important to note that the late fee must be paid in order to renew the license.

A real estate broker may have difficulty with personal property because its ownership rights and identification can be complex. Personal property can be alienated, meaning it can be transferred or sold to someone else. It can also be hypothecated, which means it can be used as collateral for a loan. Additionally, personal property can become real property if it is permanently attached to land or a building. Therefore, all of the options listed (alienated, hypothecated, become real property) can pose challenges for a real estate broker when dealing with personal property.

The correct answer is a mortgage banker collecting loans prior to resale. The term "warehousing" in the context of real estate finance refers to the practice of a mortgage banker collecting loans from various sources and holding them temporarily before selling them to investors in the secondary market. This allows the mortgage banker to package and sell the loans in bulk, providing liquidity and freeing up capital for further lending activities.

Appreciation refers to the increase in value of an asset over time. It is commonly used to describe the rise in value of real estate or investments. This increase can be due to various factors such as market conditions, inflation, or improvements made to the asset. Appreciation is an important concept in investing as it can result in capital gains when the asset is sold.

Monthly mortgage interest is not a recurring expense to a reserve or impound account by a borrower. A reserve or impound account is typically used to accumulate funds for recurring expenses such as special improvement assessments, insurance premiums, and city or county property taxes. However, monthly mortgage interest is a cost that is directly paid by the borrower to the lender and is not typically included in the reserve or impound account.

The correct answer is "Death of Wilson is the renovation of the offer." This means that Wilson's death has effectively terminated the offer, and it cannot be enforced anymore. Since Wilson died before the broker could obtain the seller's acceptance, the offer is no longer valid.

Developers are typically responsible for constructing the utilities and curbs of streets. They are the ones who plan and execute the development of a new project, which includes the construction of infrastructure such as roads, utilities, and curbs. This involves coordinating with the city and county authorities to ensure compliance with regulations and standards. The city, county, and construction crew may also be involved in the process, but the primary responsibility lies with the developer.

The correct answer is toxic waste report. When building a property next to a gas station, it is important for the owner to obtain a toxic waste report. This report will assess the potential presence of hazardous materials or contaminants in the soil or groundwater, which could pose a risk to the property and its occupants. This information is crucial for ensuring the safety and suitability of the site for construction.

The assessment roll for real property taxes serves the purpose of establishing the tax base. This means that it lists all taxable properties in the assessor's jurisdiction and assigns assessed values to them. By doing so, the assessment roll provides the foundation for calculating the amount of taxes that will be levied on each property. It is an essential step in the process of determining the overall tax revenue that will be collected from property owners within the jurisdiction.

The correct answer is to present both offers at the same time. This ensures that the sellers have all the information and can make an informed decision. It is important for the listing broker to be transparent and fair in presenting all offers to the sellers.

The agent must present the disclosure to both the owner of Main St. and the owner of Elm St., as well as to Jones and Brown. This is because the offer was contingent on the sale of Brown's home in Elm St., so both the owner of Main St. (where the offer was accepted) and the owner of Elm St. (where the sale is contingent on) need to be informed. Additionally, Jones and Brown, who are directly involved in the transaction, also need to receive the disclosure.

The correct answer is Seller. The seller is responsible for providing the Disclosure form to the purchaser of any properties that are subject to a lien created under the Mello-Roos Community Facilities Act. This form is important for the purchaser to have all the necessary information about the property and any potential financial obligations associated with it. The seller is the party directly involved in the sale of the property and is therefore responsible for providing this important document.

Roberto wants to do a 1031 tax deferred exchange to defer paying taxes. In this type of exchange, he can exchange his property for a more valuable apartment building by exchanging loans and paying money to the other party to equalize the values. This allows Roberto to defer paying taxes by transferring his investment into a higher value property while still maintaining the same level of debt.

The correct answer is "The neighborhood prospering". In order for an appraiser to determine the amount of economic obsolescence suffered by a commercial property owner, they would need to consider factors such as the neighborhood's economic growth and prosperity. If the neighborhood is prospering, it could indicate a higher demand for commercial properties in the area, which could positively impact the value of the property.

Dual Agency is the practice where a real estate agent represents both the buyer and the seller in a transaction. In order for dual agency to be legal, it is necessary for both the buyer and the seller to give their consent to this arrangement. This ensures that all parties are aware of the agent's dual role and have agreed to it willingly. Without the consent of both the buyer and the seller, dual agency would not be legally permissible.

Mello-Roos Municipal bonds are a type of financing tool used by developers to fund the costs of improving a parcel of land. These bonds are issued by a local government agency and are repaid through special taxes levied on the properties within the development. By using Mello-Roos Municipal bonds, the developer can pass on the costs of the improvements to the purchasers of the individual lots, allowing them to finance the project and recoup their investment. This option is commonly used in real estate development to fund infrastructure improvements in new subdivisions.

Tax shelter refers to a legal method or strategy used by individuals or businesses to reduce their taxable income, thereby minimizing the amount of income tax they owe. By taking advantage of tax deductions, credits, exemptions, or other tax incentives, taxpayers can lower their taxable income and potentially pay less in taxes. This can provide financial relief and help individuals or businesses retain more of their earnings. Therefore, the correct answer is income tax.

The buyer is bound to the contract because the deposit receipt did not make the offer contingent upon the school district. This means that the buyer agreed to purchase the home regardless of any changes in the school district. Therefore, the buyer does not have the right to back out or rescind the contract and is obligated to proceed with the purchase.

The correct answer is that the owner is legally permitted to post a sign if it is of reasonable proportions. This means that even if the CC&Rs prohibit the posting of a "For Sale" sign in the complex, the owner can still place a sign as long as it is of reasonable size. The owner does not need to adhere to the restriction in the CC&Rs or obtain permission from other owners or adjacent owners.

In order for a licensee to be entitled under a non-exclusive listing broker, they must prove the procuring cause of sale. This means that they must demonstrate that they were the one who ultimately brought about the sale of the property. This could involve showing that they were the one who found the buyer, negotiated the terms of the sale, or otherwise played a significant role in facilitating the transaction. By proving the procuring cause of sale, the licensee can establish their entitlement to any commission or compensation that may be due to them.

A valid deed requires a property description to clearly identify the specific property being transferred or conveyed. Without a property description, it would be impossible to determine which property the deed is referring to, making the deed invalid. The property description is necessary to ensure that there is no confusion or ambiguity regarding the property being transferred.

The correct answer is Land acquisition, map and plan approval, and construction. This sequence of steps makes logical sense in the construction of a single-family residence. First, the land needs to be acquired before any construction can begin. Once the land is secured, the map and plan need to be approved to ensure compliance with zoning and building regulations. Finally, the construction can take place, following the approved map and plan.

An FHA mortgage is unique because it insures the lender against loss. This means that if the borrower defaults on the loan, the Federal Housing Administration (FHA) will reimburse the lender for a portion of the losses. This insurance allows lenders to offer more favorable terms and lower interest rates to borrowers who may not qualify for conventional mortgages. It also reduces the risk for lenders, making FHA mortgages a popular choice for first-time homebuyers or those with lower credit scores.

The correct answer is "As of the date of the appraisal only and may contain past values at some point in the past." This means that the estimate of value provided in the appraisal report is only valid as of the date of the appraisal. It acknowledges that the appraisal may include past values from a certain point in the past, indicating that historical data may have been considered in determining the value.

Price indexes would best define the purchasing power of the U.S. dollar. Price indexes measure the average price changes of a basket of goods and services over time. By tracking the changes in prices, price indexes provide insights into the inflation or deflation of a currency. Therefore, price indexes are a reliable indicator to determine the purchasing power of the U.S. dollar as they reflect the changes in the cost of goods and services that can be bought with the currency.

The correct answer is "Inundation, sheet overflow, and ponding of local storm water". This answer is correct because it accurately identifies the degrees of flood hazard that must be reported as part of filing for a subdivision public report. Inundation refers to the flooding of an area, sheet overflow refers to water flowing over a large area like a sheet, and ponding of local storm water refers to the accumulation of water in a localized area. These are all different degrees of flood hazard that need to be assessed and reported.

$7,040 / 11% = $64,000 loan amount
$64,000 / 80% = $80,000 appraisal value

A construction loan and an interim loan are synonymous terms. Both refer to a type of loan that is used to finance the construction of a building or property. These loans are typically short-term and are intended to cover the costs of construction until a permanent financing option, such as a mortgage, can be obtained. Therefore, the correct answer is Construction loan/Interim loan.

When title and possessions are not concurrent at the close of escrow, it means that the buyer does not immediately take possession of the property after the sale is complete. In such cases, an interim occupancy agreement needs to be created. This agreement allows the buyer to occupy the property for a specific period of time before the title is transferred to them. It outlines the terms and conditions of the temporary occupancy, including any rent or fees that may be charged. This agreement ensures that both parties are protected and have a clear understanding of their rights and responsibilities during the interim period.

When lenders require borrowers to deposit amounts with the monthly mortgage payments to cover costs related to the property, the impounds typically include payments for special assessments related to the improvements of the public areas, county/city property taxes, and insurance premiums. However, monthly interest is not included in such impounds. Monthly interest is the amount that the borrower pays to the lender as a fee for borrowing the money, and it is separate from the impound account.

Stock in a mutual water company is considered real property because it represents ownership in the company's assets, such as land and water rights. Real property refers to immovable assets, including land and anything permanently attached to it. While a trust deed and a mortgage are both financial instruments related to real estate transactions, they are not considered real property themselves.

A "grandfather" clause refers to a provision that allows an existing situation or activity to continue even if it does not comply with new rules or regulations. In the context of a licensee, the mention of a "grandfather" clause likely means that they are referring to the ability to continue using a property or engaging in a certain activity that does not conform to current zoning or land use regulations. This allows them to maintain their non-conforming use of the property despite changes in regulations.

The broker is allowed to fill out the transfer disclosure statement when the agent has been instructed to do so by the seller. This means that the broker should wait for instructions from the seller or the seller's agent before completing the disclosure statement. The timing of when the statement is filled out should be based on the seller's preferences and instructions.

Escrow refers to a neutral third party that holds and manages funds and documents during a real estate transaction. In the given answer, it states that escrow changes from dual agency to single agency for each party. This means that initially, escrow acts as a dual agency representing both the buyer and the seller, but as the transaction progresses, it transitions into a single agency representing each party separately. This ensures that the interests of both the buyer and the seller are protected during the closing process.

In this scenario, the compensating clause for commission on the listing agreement has expired. The broker verbally notified the seller of a new buyer and the buyer and seller started negotiations the following day. Since the compensating clause has expired, the broker may not charge any commission for this transaction.

A prescriptive easement is an easement for non-use. It is a legal right to use someone else's property without permission, but only if the use has been continuous and uninterrupted for a certain period of time. This type of easement is acquired through the open, notorious, and adverse use of another person's property for a specified period of time, typically 10-20 years. Therefore, the correct answer is Prescriptive easement.

The monthly interest mortgage is not a recurring cost for a lender. It is a payment made by the borrower to the lender to cover the interest on the loan. The other options mentioned (special improvements assessments, city county property taxes, and insurance premiums) are recurring costs that a lender may have to pay on behalf of the borrower or as part of the loan agreement.

A building inspector is responsible for the direct enforcement of building codes. They are responsible for inspecting construction projects to ensure that they comply with the applicable building codes and regulations. They assess the safety and structural integrity of buildings, review construction plans, and conduct inspections at various stages of the construction process. Building inspectors play a crucial role in ensuring that buildings are constructed and maintained in a safe and compliant manner.

If an amendment to the Transfer disclosure statement was not provided to the buyer, it means that the buyer was not given important information about the property they were purchasing. This could potentially lead to financial loss or other damages for the buyer. As a result, they may be entitled to receive an award for damages. Additionally, the buyer may also have the option to rescind their offer to purchase the property if they were not properly informed about it. Therefore, the correct answer is either A and B.

The correct answer is Trustor to trustee. In a trust deed, the trustor (borrower) grants the trustee (a neutral third party) the power to sell the property in the event of a default. This allows the trustee to protect the interests of the beneficiary (lender) by ensuring that the property can be sold to recover the debt. The buyer does not have the power to sell the property, and the seller is not involved in the trust deed arrangement.

3 x 640 = 1920 acres
8 x $160,000 = $1,280,000
8 x 80 = 640 acres
1,920 acres - 640 acres lots = 8 parcels
8 x $400,000 each = $3,200,000
$3,200,000 + $1,280,000 = $4,480,000

The purpose of the "hold harmless" clause in the residential Listing Agreement is to protect the broker from any liability or claims resulting from incorrect information supplied by the seller. This means that if the seller provides false or misleading information about the property, the broker will not be held responsible for any legal consequences or damages. The clause shifts the responsibility onto the seller for providing accurate information and protects the broker from potential legal disputes.

In a "buyer agency," the buyer's agent does not have an agency relationship with the seller's agent, meaning they are not responsible for the actions of the seller's agent. This implies that the buyer's agent is solely focused on representing the buyer's interests and is not obligated to act in the best interest of the seller.

A percentage lease is a type of lease where the tenant pays a base rent plus a percentage of their gross sales. In this case, the rent is computed based on the gross sales of the business. Therefore, the correct term for this type of lease is a percentage lease.

In this scenario, Jimmy is using the $20,000 note as part of the security to borrow $50,000. This means that he is offering the note as collateral or a guarantee for the loan. A pledge is a legal term used to describe the act of offering personal property as security for a debt or obligation. Therefore, in this circumstance, the $20,000 note would be considered a pledge.

The correct answer is Mortgage loan disclosure statement. This document provides the borrower with detailed information about the terms and conditions of the mortgage loan, including the interest rate, loan amount, repayment terms, and any fees or charges associated with the loan. It helps the borrower understand the cost of the loan and make an informed decision.

The action by the agent was unlawful because they presented an offer with a contingency that required approval from Uncle Paul, who was financing the property. However, the agent did not discuss the offer with the buyer and assumed that Uncle Paul would have no objection. The offer was accepted without the necessary approval, which is against the law.

The provision where Davis agrees to maintain a savings account with the bank in the amount of $18,000 during the term of the loan is known as a compensating balance. A compensating balance is a requirement by the lender for the borrower to maintain a certain amount of funds in a deposit account as a condition for granting a loan. It serves as collateral and provides the lender with some assurance that the borrower will be able to repay the loan.

When a real estate broker negotiates the sale of a used mobile home, they are required to give written notice of transfer to the Department of Housing and Community Development within 10 calendar days. This means that the broker must inform the department of the transfer within 10 days of the sale taking place. This notification is important for record-keeping and regulatory purposes, ensuring that the department is aware of the transfer and can update their records accordingly.

$90,720 - $30,00 = $60,750
$60,720 / $500 = $121.5
$121.44 x 55% = $66.792 = $67

The mechanic's liens filed by the lumber company and the painter would take priority over the construction loan because they were filed before the loan was recorded. Therefore, the amount received by People's Savings and Loan would be reduced by the total amount of the liens, which is $11,000 ($8,000 owed to the lumber company + $3,000 owed to the painter). Thus, the amount received by People's Savings and Loan would be $150,000 - $11,000 = $139,000.

An option listing enables the broker to represent the seller as the agent or allows the broker to purchase the property himself. This means that the broker has the option to either find a buyer for the property and act as the seller's agent, or to purchase the property themselves. This type of listing gives the broker flexibility and control over the sale process.

A "release clause" in a trust deed provision allows a portion of the property given as security to be removed from the trust deed lien upon the completion of a specific act. This means that if the borrower fulfills certain conditions or requirements, they can have a portion of the property released from the lien. This can be beneficial for the borrower as it provides them with more flexibility and options regarding the property.

In the context of enforcing private restrictions in real estate, an injunction is a customary procedure. An injunction is a legal order issued by a court that prohibits a person or entity from engaging in a certain action or behavior. In the case of private restrictions in real estate, an injunction can be used to prevent someone from violating the terms and conditions set forth in the restrictions. It is a commonly used legal remedy to ensure compliance with private restrictions and protect the rights and interests of property owners.

The value of land is estimated based on the selling price of comparable properties. This means that the value of a particular piece of land can be determined by looking at the prices at which similar properties in the same area have been sold. By comparing the selling prices of these comparable properties, an estimate can be made of the value of the land in question. This method takes into account the market demand and the prices at which similar properties are being bought and sold, providing a reliable estimate of the land's value.

After collecting all the data and applying the appropriate appraisal methods, the next step in the appraisal process is reconciliation. Reconciliation involves analyzing and comparing the different value indicators obtained from the appraisal methods used. This step helps to determine a final estimate of value by considering the strengths and weaknesses of each indicator and reaching a consensus on the most reliable and accurate value.

When a licensee acts as an agent without authority or color of authority and the acts are later approved by the principal, an agency has been created by ratification. Ratification refers to the act of approving or confirming an action that was previously unauthorized. In this case, the principal retroactively approves the actions of the licensee, thereby creating an agency relationship.

The trustor is the person who creates the trust and transfers their assets into it. They are responsible for signing the trust deed, which outlines the terms and conditions of the trust. Additionally, the trustor may also sign promissory notes if they are borrowing money from the trust. The trustee, on the other hand, is responsible for managing the trust and carrying out the trustor's instructions. The beneficiary is the person or entity who receives the benefits of the trust. Mortgagee is a term used in mortgage agreements and is not directly related to trust deeds and promissory notes.

The escrow holder might short-rate fire insurance because it is possible that the policy was cancelled before the expiration date, resulting in a refund of the premium. Short-rating occurs when the insurance company refunds a portion of the premium due to early cancellation.

The claimant with the $25,000 judgment would receive $20,000. This is because the Real Estate Recovery Account has a maximum limit of $20,000 per claimant. Therefore, even though the claimant has a judgment of $25,000, they can only receive up to the maximum limit of $20,000 from the Recovery Account.

The broker has an excellent legal basis to collect a commission because the seller accepted the offer on his home and communicated the acceptance to the buyer. Even though the seller found another buyer who was willing to pay all cash, the original contract was already in place and the broker had successfully facilitated the sale. Therefore, the broker is entitled to receive compensation for their services.

The borrower, who bought the home for $162,000, is referred to as the trustor in this scenario. The trustor is the person who creates a trust and transfers their assets into it. In this case, the borrower is the one who took out a loan to purchase the home, and therefore, they are the trustor.

The correct answer is "All of the above." In this scenario, Roberts' lease can be considered an estate for years because it is a lease for a specific duration of seven years. It can also be considered personal property because a lease is a contractual right and can be bought, sold, or transferred like personal property. Additionally, it can be considered a chattel real because it is an interest in real property that is less than a freehold estate. Therefore, all three options are applicable in this case.

A net listing is an agreement between the owner and the agent where the owner sets a minimum amount they want to receive from the sale, and the agent gets to keep any amount they can sell the property for above that minimum. In this type of listing, the owner has the right to cancel the listing even if the agent has successfully sold the property, as the owner may not be satisfied with the final selling price.

Mutual consent is necessary for the creation of an agency because it refers to the agreement or understanding between the principal and the agent. Both parties must agree to establish a relationship where the agent will act on behalf of the principal and carry out certain tasks or responsibilities. Without mutual consent, there cannot be a valid agency relationship as it requires the willingness and agreement of both parties involved.

The correct answer is that the broker has to keep a record of the check in his record of all trust funds received and not placed in his trust account. This means that the broker must maintain a record of the check as part of their documentation of all funds received that are not deposited into their trust account. This is important for transparency and accountability in the handling of funds during the real estate transaction.

The correct answer is "Whether the property is or is not in an official earthquake fault zone." This is because a disclosure statement regarding any earthquake hazard must include information about whether the property is located in an official earthquake fault zone or not. This is important information for a prospective purchaser to know as it can affect the safety and potential risks associated with the property. The other options listed (location of power lines, flood zones, and other hazards, and the location of all emergency services) may also be important information to disclose, but they are not specifically related to earthquake hazards as stated in the question.

In the direct comparison analysis, comparables are adjusted to the characteristics of the subject property. This means that any differences between the comparables and the subject property are accounted for and adjusted to reflect the specific characteristics of the subject property. This allows for a more accurate and fair comparison between the properties, taking into consideration the unique features and attributes of the subject property.

In this scenario, the subagent broker is primarily responsible to the principal. This means that the subagent broker must act in the best interest of the principal and fulfill their duties and obligations towards them. The subagent broker is authorized by another broker to act on behalf of the seller, but their ultimate responsibility is towards the principal. They must ensure that they protect the principal's interests and carry out their instructions and wishes.

Willy bought a vacant lot for $17,424. The lot has an area of 21,780 sqft and is 140 ft deep. He sold the lot and made a 40% profit after paying a 10% commission to Broker John. To find the price per front foot, we need to calculate the selling price of the lot. First, we calculate the original cost per sqft by dividing the total cost by the total area: $17,424 / 21,780 = $0.80 per sqft. Then, we calculate the selling price per sqft by adding the 40% profit: $0.80 + ($0.80 * 0.40) = $1.12 per sqft. Finally, we calculate the selling price per front foot by dividing the selling price per sqft by the depth of the lot: $1.12 / 140 = $0.008 per front foot. Converting to dollars, the lot sold for $174 per front foot.

An easement in gross is a type of easement that is not attached to any specific piece of land owned by the easement holder. Unlike an appurtenant easement, which is tied to the ownership of a specific property, an easement in gross is a personal right granted to an individual or entity. It allows the holder to use another person's land for a specific purpose, such as accessing a utility line or crossing a property. In this case, since the easement is not attached to any lands owned by the easement holder, it is considered an easement in gross.

Interim use refers to the temporary or transitional use of a building until a more permanent or optimal use is determined. It suggests that the current use of the building may not be its highest and best use, but rather a temporary solution until a better use is identified. This term is commonly used in real estate and urban planning to describe the temporary repurposing of buildings or land while long-term plans are being developed or implemented.

The correct answer is to present the disclosures to the owner (seller). This is because the owner is the primary party involved in the transaction and they have the right to be informed about any relevant information regarding the property and the offer being made. The owner needs to have all the necessary information in order to make an informed decision about whether to accept the offer or not.

The cost approach is the method used by appraisers to evaluate a shopping center. This approach involves estimating the cost of replacing the property with a similar one, taking into account depreciation and other factors. It does not consider the income generated by the property or compare it to similar properties in the market. Instead, it focuses on the actual cost of constructing or replacing the shopping center.

Market value is synonymous with "price" because market value refers to the current value at which a product or asset can be bought or sold in the market. It represents the amount of money that someone is willing to pay for a particular item or property. Therefore, market value and price are interchangeable terms in this context.

The interest on an assumed loan record will least appear on the buyer's debit side because it is an expense that the buyer will not have to pay. When a buyer assumes a loan, they take over the existing loan and are responsible for making the monthly payments. The interest on the loan is already included in the monthly payment and is paid by the buyer directly to the lender. Therefore, it does not need to be listed as a separate expense on the buyer's debit side.

The "Request for Notice of Default" would be executed and recorded for the benefit of the beneficiary of the second trust deed. This is because the second trust deed is subordinate to the first trust deed, meaning that in the event of default, the beneficiary of the first trust deed would have priority in receiving payment from the sale of the property. By filing a "Request for Notice of Default," the beneficiary of the second trust deed is ensuring that they will be notified if the borrower defaults on their payments, allowing them to take appropriate action to protect their interests.

The correct answer is Trustee. In a reconveyance deed, the trustee is the one who signs the document. A reconveyance deed is used to transfer the title of a property from the trustee back to the borrower, also known as the mortgagor, once the mortgage loan has been fully paid off. The trustee holds the legal title to the property during the duration of the mortgage, and upon repayment, they are responsible for signing the reconveyance deed to release the title back to the borrower.