Real estate practice exam, national portion

Three investors hold title to a parcel of land as joint tenants with right of survivorship. The first investor conveys their entire interest to a friend. Subsequently, the second investor dies. How is the property now owned?

1. The friend owns a one-third interest and the second investor's heirs own two-thirds.
2. The friend and the third investor as tenants in common.
3. The friend and the third investor as joint tenants with right of survivorship.
4. The friend, the third investor, and the second investor's heirs as tenants in common.
5. The third investor alone owns the entire property in an estate in severalty.

A property owner leases a single-family home to a tenant for a two-year term. Six months into the lease, the owner sells the property to an investor. The lease agreement is silent on the sale of the property. What is the legal status of the tenant's leasehold interest?

1. The lease is immediately voided and the tenant must negotiate a new legal agreement.
2. The original owner retains possession until the lease expires naturally in two years.
3. The investor takes title subject to the existing lease and must honor it.
4. The tenant must permanently vacate the premises within thirty days of the recorded transfer.
5. The investor can terminate the lease by giving the tenant a mandatory sixty-day notice.

A tenant bolts a specialized display case to the wall of a leased retail space. To determine if the case is a legally permanent fixture, what will courts evaluate?

1. The potential depreciation of the display case and its future resale value on the open market.
2. Only the method of physical attachment, because bolting items automatically converts them into real property.
3. The method of attachment, the adaptation to the property, and the objective intent.
4. Exclusively the tenant's subjective intent when originally signing the commercial property rental lease agreement.
5. The duration of the lease agreement and the total financial cost of the specialized installation.

A tenant farmer holds land under a tenancy at will and plants an annual corn crop. Midway through the season, the landlord ends the tenancy through no fault of the tenant. Which statement correctly identifies the tenant's rights regarding the crop?

1. The tenant can only harvest the crop if the tenancy ended after the corn had reached full agricultural maturity.
2. The tenant must immediately vacate and forfeit the crop but is entitled to financial compensation from the landlord.
3. The landlord acquires full ownership of the corn crop because the crop is attached to the land.
4. The tenant retains the right to re-enter the property to harvest the corn crop.
5. The landlord and the tenant must divide the harvested corn equally based on the time the tenant occupied the land.

An established local diner operates legally as a grandfathered nonconforming use in a recently rezoned strictly residential district. The owner decides to construct a new drive-thru window to increase sales. How will local zoning authorities likely respond?

1. They will require a standard building permit only.
2. They will force the diner to close.
3. They will approve it as a continuous existing use.
4. They will deny the expansion of the use.
5. They will grant an automatic statutory variance.

A municipality enacts a new zoning law restricting commercial development, reducing a vacant lot's market value by thirty percent. The owner sues the city for financial compensation. Under standard legal principles, what is the most likely judicial outcome?

1. The owner wins under eminent domain.
2. The city prevails assuming the land was totally vacant.
3. The owner receives partial damages for the lost value.
4. The owner wins through an inverse condemnation suit.
5. The city prevails under valid police power.

A property owner discovers that a previously recorded deed in their property's chain of title was forged. The current owner holds an owner's title insurance policy. How will the title insurance company handle this situation?

1. It will declare the policy void since the entire chain of title is legally invalidated
2. It will cover the financial losses because forgeries are insured pre-existing defects
3. It will require the owner to personally sue the forger before providing any reimbursement
4. It will deny coverage because recorded forged documents fall under standard policy exclusions
5. It will demand that the county clerk's office compensate the owner for the recording error

Which set of primary appraisal approaches is correct for: a single-family home in an active subdivision; a new church with no comparable sales; a stabilized apartment complex?

1. Sales comparison; cost; income
2. All three properties: cost approach
3. Sales comparison; income; cost
4. Cost; sales comparison; income
5. Income; cost; sales comparison

A municipality conducted a citywide reassessment, resulting in a substantial increase in annual property taxes for a fully occupied commercial building. Assuming the gross rental income and market capitalization rate remain constant, how will this tax increase affect the property's estimated market value?

1. The value will increase due to the higher gross rent multiplier
2. The value will remain unchanged since taxes are passed to the tenants
3. The value will decrease because the NOI is reduced
4. The value will increase because the property tax base is higher
5. The value will remain unchanged because capitalization rates are static

A licensee prepares a Comparative Market Analysis. The subject property has a renovated kitchen and no garage. Comparable 1 matches exactly. Comparable 2 has an outdated kitchen and no garage, and the licensee subtracted $15,000 from its sale price. Comparable 3 has a renovated kitchen and a garage, and the licensee subtracted $20,000. Which adjustment was applied incorrectly?

1. Subtracting value from Comparable 3
2. Failing to add value to Comparable 3 for the kitchen
3. Making zero adjustments to Comparable 1's sale price
4. Subtracting value from Comparable 2
5. Adjusting the comparables instead of the subject property

An appraiser is evaluating a legally permissible commercial site. A proposed retail use has an estimated net present value of $1.5 million. A proposed office use has an estimated net present value of $2.1 million. Both uses are physically possible and financially feasible. Under highest and best use analysis, how should the appraiser classify the office use?

1. As the physically possible baseline use of the property
2. As a speculative financially feasible use of the property
3. As the maximally productive economic use of the property
4. As a marginally profitable alternative use of the property
5. As an interim legally permissible use of the property

A real estate agent presents a competitive market analysis (CMA) using a comparable property that sold for $400,000. The agent applied multiple positive and negative adjustments that offset each other, resulting in a net adjustment of only $2,000. However, the gross adjustments totaled $135,000. What does this magnitude of gross adjustments indicate about the comparable?

1. The comparable demonstrates an exceptional degree of functional obsolescence.
2. The comparable is fundamentally dissimilar compared to the subject property.
3. The comparable represents the highest and best use for the zoning regulation.
4. The comparable is an identical match, requiring straight-line depreciation.
5. The comparable is highly reliable because the net adjustment is very minimal.

An appraiser is valuing an established multi-family property. The subject property is currently fully occupied with an actual vacancy rate of 0%. However, a detailed analysis of comparable properties in the immediate neighborhood reveals a consistent market vacancy rate of 6%. When calculating the stabilized effective gross income (EGI) for valuation purposes, how should the appraiser handle the vacancy rate?

1. Deduct the 6% market vacancy rate directly from the final value.
2. Apply the 0% actual vacancy rate to the gross scheduled income.
3. Apply the 6% prevailing market vacancy rate to the gross income.
4. Apply a 3% average vacancy rate to the effective gross income.
5. Deduct the 0% actual vacancy rate from the net operating income.

An investor spends $25,000 to completely replace the aging roof of a rental building. When calculating the property's net operating income for direct capitalization, how should this expense be treated?

1. Amortized monthly across the calendar year
2. Deducted fully as an operating expense
3. Treated as a standard maintenance deduction
4. Excluded entirely from the calculation
5. Subtracted directly from the gross income

After a seller refuses to convey a unique commercial parcel, the buyer sues for specific performance. Which factor is most critical for the buyer's success?

1. Existence of a liquidated damages clause in the contract
2. The seller's personal profit motive behind breaching the contract
3. Property uniqueness and buyer's readiness to close
4. Buyer's willingness to accept partial performance
5. The seller's financial ability to pay substantial monetary damages

A purchase agreement explicitly designates the forfeiture of earnest money as the "sole and exclusive remedy" in the event of a buyer breach. If the buyer defaults, can the seller successfully sue for specific performance?

1. Yes, because specific performance is automatically available in all real estate sales.
2. No, because the exclusive remedy clause legally bars a specific performance lawsuit.
3. No, because specific performance can only be initiated by the buyer's representation.
4. Yes, because earnest money forfeiture applies only to minor contingencies, not defaults.
5. Yes, because equitable remedies always supersede written contractual damage clauses.

Seller signed a written option with property description and May 1 deadline. Buyer emailed timely exercise; seller refused to convey. What is the contract status under E-SIGN/UETA?

1. Option remains unilateral because buyer email was not signed writing
2. No contract forms because email fails writing requirement
3. Bilateral contract formed upon buyer's timely email exercise
4. Option expired because exercise lacked the seller's signature
5. Bilateral contract forms only when seller accepts buyer's exercise

A buyer's contract includes financing and appraisal contingencies, each deemed waived unless the buyer gives written notice of termination by its deadline. The appraisal comes in low before the deadline. The buyer sends no written notice. The lender denies financing after the deadline. What is the contract status?

1. Lender denial automatically extends financing deadline
2. Both contingencies waived; buyer must close
3. Contract void because appraisal came in low
4. Appraisal remains open; financing still exists
5. Financing contingency remains open until written denial

During a property showing, a buyer's agent verbally informs the buyer that the agent is related to the seller. The buyer acknowledges this and proceeds to submit an offer, but the relationship is never disclosed in writing. Has the agent fulfilled the necessary disclosure requirements?

1. Yes, because the buyer's decision to submit an offer implies informed consent to verbal disclosures.
2. Yes, because verbal disclosure before drafting the purchase offer fulfills the obligation of absolute honesty.
3. No, because the agent must obtain permission from the real estate commission before showing property.
4. No, because fiduciary conflicts of interest require formal written disclosure and informed client consent.
5. No, because the agent must unconditionally recuse themselves from the transaction regardless of any disclosures.

A broker secures an exclusive right-to-sell listing. Before a buyer is found, the city condemns the property via eminent domain. The broker demands a commission on the condemnation award. Is the broker entitled to this commission?

1. No, because government purchases are exempt from all brokerage commissions.
2. No, because condemnation is an involuntary alienation that terminates the agency by operation of law.
3. Yes, because the exclusive right-to-sell agreement guarantees commission regardless of how the title transfers.
4. Yes, because the condemnation award functions as fair market value consideration for the seller.
5. Yes, provided the broker's listing agreement explicitly mentions municipal condemnation proceedings.

A licensee holding a listing agreement verbally agrees to represent a buyer at an open house, but no written buyer agency or dual agency consent exists. Which is correct?

1. The licensee became the buyer's agent only, so no dual agency exists in this situation.
2. An unauthorized dual agency was created; written consent was required.
3. The licensee remains the seller's agent only; no buyer agency was formed.
4. The licensee became a transaction broker automatically.
5. The licensee may represent both parties without written consent.

After a seller terminates a listing, the agent uses confidential information about the seller's urgent need to sell to purchase the property personally at a below-market price and fails to return earnest money. Which duties survive termination?

1. All fiduciary duties continue
2. Confidentiality and accounting
3. Loyalty and disclosure duties
4. No duties survive termination

A broker receives a buyer's earnest money check on the Friday before a long holiday weekend. To ensure the funds are secure, the broker temporarily deposits the check into the brokerage's business operating account, intending to transfer it to the trust account on Tuesday. What is the legal status of this action?

1. It is illegal commingling, despite the broker's protective intentions over the long holiday weekend.
2. It is a violation of reasonable care, but does not breach trust fund accounting rules.
3. It constitutes illegal conversion, since the broker effectively used the buyer's funds for business expenses.
4. It is an acceptable business practice if the brokerage operating account has sufficient covering funds.
5. It is a permissible safeguard, provided the funds transfer by the next available business day.

A brokerage lacks fair housing policies and agent training, relying solely on E&O insurance. After an agent steers minority buyers, the broker claims insurance covers. What is true?

1. Insurance does not replace active supervision and written compliance policies.
2. The brokerage must purchase additional insurance to cover fair housing claims.
3. The broker is not liable because the agent acted outside company policy.
4. E&O insurance covers regulatory penalties, so no further action is needed.
5. Only the agent is liable, as the broker provided no training.

Broker advertises 'no commission' but listing agreement has $2,000 marketing fee and 1.5% transaction fee not in ads. Which violation is most likely?

1. Fair housing violation
2. Unauthorized legal practice
3. Deceptive advertising
4. No violation later disclosed
5. RESPA kickback scheme

A property manager's occupancy policy limits occupants to one per bedroom. A couple with an infant is denied a two-bedroom unit. They file a familial status complaint. Which best states the firm's liability and appropriate immediate and long-term responses?

1. No liability because the policy is neutral and uniformly applied
2. Likely disparate impact; preserve records, adopt two-per-bedroom
3. Possible disparate impact; respond to complaint without policy change
4. Intentional familial status discrimination; terminate policy and apologize
5. No liability; one-person-per-bedroom is a reasonable health standard

An agent plans a social media ad campaign for a listing and excludes several ZIP codes that are predominantly minority 'to target better buyers.' Before launching, what must the agent do?

1. No action is needed if the agent did not intend to discriminate.
2. Exclude only ZIP codes with high crime rates without regard to race.
3. Remove the ZIP code exclusions and use neutral targeting criteria.
4. Proceed as planned because ZIP code targeting does not involve protected classes.
5. Use a smaller geographic radius to avoid any fair housing concerns.

Upon receiving a fair housing steering complaint, which immediate set of steps should the broker take?

1. Contact the complainant and offer a refund to resolve the matter.
2. Delete all advertising to avoid liability.
3. Ignore the complaint until formal legal action is filed.
4. Preserve records and restrict agent if risk exists.
5. Terminate the agent immediately without investigation.

A bank that took title to a 1968 home through foreclosure is now reselling it to a buyer. The bank claims exemption from all property condition disclosures because it acquired the home by foreclosure. Which requirement must the bank still fulfill?

1. Completing the state's standard latent defect questionnaire.
2. Disclosing the demographic composition of the neighborhood.
3. Offering a comprehensive home warranty for structural issues.
4. Guaranteeing the functional operation of mechanical systems.
5. Providing the mandatory federal lead-based paint disclosure.

A seller's agent learns from the seller that there was a prior mold complaint in the home, but the seller tells the agent not to mention it. The buyer's agent asks the listing agent if the seller is aware of any past mold issues. Which duty requires the listing agent to disclose the mold history?

1. The duty of reasonable care in marketing
2. The duty of disclosure of material facts
3. The duty of confidentiality to the seller
4. The duty of loyalty to the seller's instructions
5. The duty of accounting for property condition

While touring a listing, an agent notices strong musty odors and significant water stains in the crawlspace, but the seller formally denies any mold history. What must the agent do?

1. Disclose the observed water stains and odors to potential buyers.
2. Advise the seller to scrub the stains before scheduling showings.
3. Hire an independent environmental inspector at the brokerage's sole expense.
4. Refuse to show the property until the seller admits liability.
5. Rely entirely on the seller's written denial of mold presence.

A commercial buyer tells the licensee to ensure the Phase I ESA includes soil and groundwater sampling. What should the licensee say?

1. No sampling is ever allowed on commercial property.
2. Ask the seller to perform sampling prior to sale.
3. Phase I includes only groundwater, but not soil sampling.
4. Order a Phase I that includes all requested sampling.
5. Phase I does not include sampling; Phase II does.

A seller tested their home for radon two years ago, and the result was 3.1 pCi/L. Because this is below the EPA action level of 4.0 pCi/L, the seller asks their agent if they need to disclose this result to prospective buyers. How should the agent respond?

1. The result need not be disclosed since it falls safely below the federal reporting threshold.
2. The agent must report the result to the state environmental agency before releasing to the buyers.
3. The prior test result is material information and should be disclosed to buyers regardless of the level.
4. The seller is only required to disclose the result if a prospective buyer explicitly asks about it.
5. Disclosure is entirely optional as long as the seller provides the buyer an EPA radon brochure.

Ten years ago, a homeowner decommissioned an underground heating oil tank by draining it, but left it buried in the yard. The seller did not disclose this when listing the property. How is this buried tank legally classified?

1. A grandfathered feature entirely exempt from regulation
2. A nonmaterial fact since decommissioning occurred previously
3. A latent defect demanding prospective buyer disclosure
4. A patent defect discoverable during routine inspection
5. A patent defect common throughout older neighborhoods

A lender delivers the Closing Disclosure in person to a borrower on Wednesday, July 3rd. Thursday, July 4th is a legal federal public holiday. Under TRID rules, what is the earliest date that consummation can legally occur?

1. Monday, July 8
2. Friday, July 5
3. Sunday, July 7
4. Tuesday, July 9
5. Saturday, July 6

Why does equity buildup in a property accelerate significantly during the later years of a standard 30-year fixed-rate fully amortizing mortgage?

1. Property valuations appreciate significantly within the latter timeframe.
2. Aggregate monthly payment requirements progressively increase moving forward.
3. Underlying interest percentages decrease marginally with consecutive installments.
4. Financial institutions apply substantial portions to escrow initially.
5. Early mortgage payments are interest-heavy, delaying principal reduction.

Borrower A makes a 5% down payment, and Borrower B makes a 20% down payment on similar homes. Both have identical credit scores. Which statement best describes the likely impact on loan pricing?

1. Both will receive the same interest rate because credit is identical.
2. Borrower A will have a lower interest rate due to higher risk.
3. Borrower A will have a higher interest rate and mortgage insurance.
4. Borrower B will have a higher interest rate and mortgage insurance.
5. Borrower A will not need mortgage insurance because the LTV is below 80%.

A week before closing, the lender discovers a third-party fee increased beyond the 10% cumulative tolerance by $400 and issues a lender credit to cure. How does this credit affect the borrower's cash to close?

1. It has no effect on the borrower's cash to close
2. It reduces the cash to close by $400
3. It changes the loan's interest rate
4. It is paid after closing by the seller
5. It increases the amount the borrower must bring to closing by $400

A buyer enters into a purchase agreement for $112,500. The property appraisal returns a value of $100,000. If the lender strictly requires an 80 percent Loan-to-Value (LTV) ratio, what is the minimum cash down payment the buyer must provide for consummation, excluding any closing costs?

1. $22,500
2. $112,500
3. $32,500
4. $20,000
5. $12,500

A borrower has an adjustable-rate mortgage that adjusts annually. The current interest rate is 4.5%. The loan features a margin of 2.0%, a periodic adjustment cap of 1.5%, and a lifetime cap of 5.0% above the initial rate. If the current index jumps to 5.5% at the adjustment date, what will be the borrower's actual new interest rate for the upcoming year?

1. 7.50%
2. 8.00%
3. 6.00%
4. 6.50%
5. 5.50%

A seller wants to net exactly 205,000 from the sale of their home after paying a 5% broker commission and 4,000 in fixed closing costs. What is the minimum gross sales price required to achieve this target net amount?

1. $219,789
2. $215,789
3. $209,000
4. $220,000
5. $219,450

A parcel is described under the Public Land Survey System as "The S 1/2 of the NW 1/4 of the NE 1/4 of Section 22, Township 3 North, Range 4 West." Assuming Section 22 is a regular full section of 640 acres with no irregular government lots, what is the acreage of the described parcel?

1. 80 acres
2. 40 acres
3. 160 acres
4. 10 acres
5. 20 acres

A comparable apartment building sold for $2,000,000 with an annual NOI of $160,000. The subject property has an annual NOI of $140,000. What is the subject's estimated value using a market-extracted capitalization rate from the comparable sale?

1. $1.40 million
2. $1.60 million
3. $1.12 million
4. $2.00 million
5. $1.75 million

A single broker represents two competing buyers submitting offers on the same property. To avoid breaching fiduciary duties, which action must the broker take regarding this multiple-offer situation?

1. Inform the seller of the dual agency to maximize the property's final sale price.
2. Refuse the second buyer's offer automatically to protect the first buyer's interest.
3. Submit both offers while maintaining strict confidentiality without disclosing the conflict.
4. Disclose the conflict and obtain written consent from both buyers.
5. Advise the second buyer on a higher offer price to ensure they win the bid.

A seller mistakenly signs an open listing with Broker A and an exclusive right-to-sell listing with Broker B. If Broker A successfully procures a buyer who closes on the property, what is the seller's commission liability?

1. Only Broker A is owed.
2. The seller owes a full commission only to Broker B.
3. The seller must split the standard commission equally.
4. The seller owes commissions to both brokers.
5. The seller owes nothing because multiple listings void both contracts.

A seller signs a six-month exclusive right-to-sell listing agreement but unilaterally revokes it after two months without cause. The seller immediately takes the property off the market. Which of the following BEST describes the legal consequences of the seller's action?

1. The seller may terminate the agency but remains liable for damages under the breached contract.
2. The termination automatically triggers a transfer of listing rights to the state commission for mandatory mediation.
3. The seller lacks the power to terminate the agency relationship until the six-month term expires.
4. The termination is valid without penalty because agency agreements require continuous mutual consent to survive.
5. The seller must pay the full expected commission regardless of whether the property is ever sold.

A buyer submitted a bad earnest money check and repeatedly missed contract deadlines. After the seller refused to close, the buyer sued for specific performance. How is a court MOST likely to rule based on equitable doctrines?

1. Deny specific performance due to unclean hands.
2. Compel conveyance since the seller completely failed to mediate the dispute.
3. Order specific performance but require a higher purchase price paid.
4. Grant specific performance because land is legally presumed unique.
5. Award specific performance if the broker actively replaces the bad check.

A buyer is purchasing a commercial property with a known history of industrial use. Which contractual provision provides the buyer with the BEST protection against being forced to purchase a contaminated property?

1. A standard title insurance policy that guarantees against recorded encumbrances
2. An "as is" provision that explicitly limits the seller's post-closing liability
3. An environmental inspection contingency that permits contract termination
4. A general financing contingency clause that strictly requires a professional property appraisal
5. A comprehensive home warranty policy covering major structural component failures

For fifteen years, a neighbor has fenced in a driveway on an adjacent vacant lot, exclusively maintaining it and paying the county property taxes for that specific strip. The neighbor now files a legal claim for fee simple title. Which legal doctrine is the neighbor pursuing?

1. A prescriptive easement
2. Adverse possession of the physical property
3. An easement by necessity for driveway access
4. An encroachment validation by prior appropriation
5. A fee simple defeasible estate claim by prescription

A dominant estate owner has not used an access easement across a neighboring parcel for twenty years. Recently, the dominant owner built a permanent masonry wall completely blocking their own access to the easement path. Which outcome is most likely?

1. The easement converts into a license agreement
2. The easement is terminated by abandonment
3. The easement remains valid
4. The prescriptive period restarts immediately
5. The servient estate must rebuild the access

A and B own as joint tenants. A conveys her interest to C, severing the joint tenancy. C later conveys the interest back to A. How do A and B now hold title?

1. As joint tenants with right of survivorship
2. As tenants in common
3. As tenants by the entirety
4. As tenants in common with unequal shares
5. As community property

A and B own a property as tenants in common. A wishes to sell her undivided interest but cannot find a buyer; B refuses to sell or buy A's interest. A files a lawsuit seeking partition. What is the most likely outcome?

1. The court will order an involuntary partition only if B is abusive
2. The court will require A and B to remain co-owners
3. The court will dismiss the case because B did not consent
4. The court will order a sale only if both parties agree
5. The court will order a partition or sale

Two investors own a commercial building as equal tenants in common. One investor dies intestate, leaving three adult children. How will the deceased investor's share of the property be distributed?

1. The surviving investor automatically assumes full ownership of the entire building.
2. The deceased investor's one-half interest escheats directly to the state government.
3. The children each receive a one-sixth interest as tenants in common.
4. The children and the surviving investor will establish a completely new joint tenancy.
5. The children must jointly purchase the surviving investor's share to claim ownership.

During a title search, a buyer's agent discovers an unresolved, minor spelling error in a deed from eighty years ago. The buyer threatens to terminate the contract, claiming the title is unmarketable. Which statement accurately addresses this situation?

1. The title is rendered voidable by the buyer without any penalty or earnest money loss
2. The title is completely unmarketable until a quiet title action successfully resolves the error
3. The title is clouded and requires an immediate quitclaim deed from the previous owner
4. The title is unmarketable because marketable title requires the absolute impossibility of any defect
5. The title remains marketable because the defect poses no reasonable litigation risk

Owner A sells to B, who does not record. B sells to C, who records the deed from B. Later, A sells the same property to D, who searches the public records. Will C's recorded deed provide constructive notice to D?

1. Yes, because the deed from B to C is recorded
2. Yes, because any recorded deed gives notice to everyone
3. No, because the B-to-C deed is outside the chain of title
4. No, because A had actual notice of the sale to B
5. No, because D holds only equitable title

A grantor places a signed deed into escrow with irrevocable instructions to deliver it to the grantee upon the payment of $100,000 on Friday. The grantor suddenly dies on Thursday. The grantee makes the payment on Friday. What is the status of the transfer?

1. Suspended, because the heirs must approve the transfer
2. Valid, because signing the deed alone transfers title
3. Invalid, because a deceased person cannot deliver a deed
4. Valid, because the escrow deposit counted as delivery
5. Invalid, because the grantor's death cancels the transaction

X used a path across Y's land openly and without permission for 8 years. X then moved away, and Z, an unrelated neighbor who did not buy X's land, used the same path for 7 years. The prescriptive period is 15 years. Has a prescriptive easement arisen?

1. No, because only the owner of record can use a path
2. Yes, because the path was used continuously
3. No, tacking requires privity between X and Z
4. Yes, because the two periods add up to 15 years
5. No, because neither user recorded the easement

A 17-year-old inherits land and signs a contract to sell it. Two months after turning 18, she emails the buyer confirming the sale, then tries to cancel it. Is the contract enforceable?

1. Yes, because she inherited the property
2. No, because disaffirmance must come before turning 18
3. Yes, because she ratified it after turning 18
4. No, because a minor's contract is void from the start
5. Yes, but only if the buyer pays the price again

A signed written contract sells vacant land for '$1 and other good and valuable consideration.' The seller later refuses to close, claiming $1 is too little to support the contract. Is the contract enforceable?

1. No, unless the buyer proves the land's actual value
2. No, because $1 is nominal and cannot support a contract
3. Yes, but only if the buyer agrees to pay more
4. Yes, but a court must first approve the price as fair
5. Yes, courts do not weigh adequacy of consideration

A zoning change allows a nightclub to open next to a residential property, and the property loses $45,000 in value. In the cost approach, how should the appraiser classify this loss?

1. Physical deterioration, curable through maintenance
2. External obsolescence, curable by adding soundproofing
3. External obsolescence, incurable by the owner
4. Functional obsolescence, incurable due to the floor plan
5. Functional obsolescence, cured by renovation