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 easementAppurtenantReal property can be converted to personal property bySeveranceBlockbusting refers to the practice ofencouraging the panic selling of homesbelow market value, generally by raising fears that an influx of individualsbelonging to a particular minority group will decrease property values in aneighborhood and affect the area negativelyThe economic characteristics of land arescarcity, 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 maydo 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 ownerWhich 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 ofall owners, present and future.New sidewalks installed only on one particular street will probably be paid for bya special assessment.A lawsuit for inverse condemnation may be brought bya homeowner.An environmental impact statement typically describes the effects of a proposed project on factors such aspublic health and safety.The terms "littoral," "riparian," and "appropriative" refer towater rights.A commercial property lost value because a recently constructed highway moved traffic away from the property. This is an example ofeconomic or external obsolescence.A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggesta 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
its gross monthly rent.All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT thestraight-line method.