Estates.docx - A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500 The property has just been sold at a foreclosure

Estates.docx - A property is encumbered by a first mortgage...

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A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds? The second mortgagee receives nothing unless he forced the foreclosure auction. A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access and receives a deed. This is an easement Appurtenant Real property can be converted to personal property by Severance Blockbusting refers to the practice of encouraging the panic selling of homes below market value, generally by raising fears that an influx of individuals belonging to a particular minority group will decrease property values in a neighborhood and affect the area negatively The economic characteristics of land are scarcity, location, and durability. A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have? Tenancy at will. When land is conveyed to a trustee, the trustee may do whatever is permitted under the trust agreement. . If conditions for purchase are included in a deed and these conditions are violated, what is the penalty? Return of the property to the original owner Which of the following BEST illustrates the concept and intent of a buffer zone? Garden apartments located between a single-family residential neighborhood and a shopping center. A deed restriction is applicable to the activities of all owners, present and future. New sidewalks installed only on one particular street will probably be paid for by a special assessment. A lawsuit for inverse condemnation may be brought by a homeowner. An environmental impact statement typically describes the effects of a proposed project on factors such as public health and safety. The terms "littoral," "riparian," and "appropriative" refer to water rights. A commercial property lost value because a recently constructed highway moved traffic away from the property. This is an example of economic or external obsolescence. A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest a competitive market analysis to determine the property's value. The gross rent multiplier for a single-family home is calculated by dividing the sales price of the property by
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its gross monthly rent. All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT the straight-line method.
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