Real Estate National

Front 1

A broker touring a house before taking a listing notices that the floor is sagging in the living room. The seller has placed a large rug over the floor. What should the broker do in this situation?

Back 1

Ask the seller about the sagging floor to discover if there is a structural problem with the house

Front 2

An agent who works for XYZ Realty referred a buyer to a broker, who works for ABC Realty. The referring agent is to receive 25% of buyer side commission when the transaction closes. The buyer purchased a $350,000 home, and the 7% commission was split as follows: listing brokerage, 2%; listing agent, 2%; buyer’s brokerage, 1.5%; buyer’s agent, 1.5%. How much was the referring agent paid?

Back 2

The answer is $1,312.50. $350,000 × 1.5% (.015) = $5,250 $5,250 × 25% (.25) = $1,312.50

Front 3

A salesperson who has a seller complete a property disclosure form and who provides the form to a buyer in a timely manner is protecting the liability of the

Back 3

brokerage.

Front 4

On January 1, the seller paid the $2,345 in taxes for the current year. If he sold the property on June 23 of that same year with the seller having the day of closing, how much would he be credited at closing? (Use a 360-day year.)

Back 4

The answer is $1,218.10. Since the taxes were paid in advance, the buyer will owe the seller for the time the buyer owns the house? June 24 to December 30, since this is a 360 year. Total owed ÷ Total days × Days owed = Amount due. $2,345 ÷ 360 × 187 = 1,218.097 round to $1,218.10

Front 5

Which of the following would create a lien on real estate?

Back 5

Unpaid mortgage loan

Front 6

A person who assumes an existing mortgage loan is

Back 6

personally responsible for paying the principal balance.

Front 7

Salespersons working as an employee for a principal broker can be required to

Back 7

work specific hours each day as assigned by the broker.

Front 8

A couple declined to purchase an owner's title policy at closing, but the lender required them to purchase a mortgagee's title policy. Six months after the closing, a man knocked on their door. He explained that he had an ownership interest in the property because his spouse sold the property while he was in another country. The man at the closing table, who said he was the spouse, was not. If the man's claim is true, are the buyers covered under the lender's policy?

Back 8

No, because the buyers are not covered by the mortgagee's policy.

Front 9

To increase yield on a loan, the lender charges

Back 9

discount points rates.

Front 10

The buyers secured an $82,000 loan at 9.25% interest for 30 years. Their monthly payment is $674.59. How much of their first payment will be applied to the principal balance?

Back 10

The answer is $42.51. $82,000 × 9.25% (.0925) = $7,585 Annual interest $7,585 ÷ 12 = $632.08 Monthly interest $674.59 - $632.08 = $42.51

Front 11

The buyer and seller are under contract when the title work is delivered. The buyer discovers the seller does not have clear title to the property. The buyer sends the seller notice to clear the title. The best way for the seller to clear the defective or clouded title is

Back 11

through a quiet title suit.

Front 12

The remedy for parties in default that is available to both the buyer and the seller in a purchase contract is

Back 12

specific performance.

Front 13

When appraising a commercial property, the appraiser is MOST concerned with the

Back 13

income generated by the property.

Front 14

A listing contract in which payment of the commission is contingent on the broker's being able to produce a buyer before the property is sold by the owner or another broker is called a(n)

Back 14

open listing.

Front 15

A couple is applying for a home loan. One spouse has an annual gross income of $102,000 and the other spouse makes $72,000 a year. They have monthly car payments of $875, monthly credit card payments of $620, and their monthly grocery expenses come to $1,200. If the lender uses debt ratios of 28% and 3% to qualify them, what is the maximum monthly housing expense they will qualify for?

Back 15

The answer is $3,725. $102,000 + $72,000 = $174,000 ÷ 12 = $14,500 Monthly $14,500 × 28% (.28) = $4,060 $14,500 × 36% (.36) = $5,220 $5,220 − $1,495 ($875 + $620) = $3,725 other recurring debt

Front 16

Hidden defects, which are not easily discovered during a property inspection, are called

Back 16

latent defects.

Front 17

According to its state's laws, a brokerage firm is allowed to have an agency relationship with only one party in the same transaction. This relationship is known as

Back 17

single agency.

Front 18

A woman applies to the municipality for permission to open an adult day-care facility in her neighborhood. Many elderly persons live in the neighborhood. The municipality may grant her a(n)

Back 18

special use permit.

Front 19

A broker received a 6% commission from the sale of a property. The broker gave the salesperson $3,500, which was 30% of the firm's commission. What was the selling price of the property?

Back 19

The answer is $194,450. To find the broker's total commission, divide the salesperson's commission by the percentage of the salesperson's commission: $3500 ÷ .30 (30%) = $11,667. The broker's commission is 6% of the sales price. To find the sales price, divide the broker's commission by the percentage of the broker's commission: $11,667 ÷ .06 (6%) = $194,450.

Front 20

A buyer signed a purchase agreement, but then the seller decided not to sell. The buyer sued the seller successfully and was able to purchase the house. What was the contract remedy if the seller was in default?

Back 20

Specific performance

Front 21

A recorded subdivision plat is used in the

Back 21

lot and block system.

Front 22

With a tenancy for years

Back 22

no notice is required to terminate the lease.

Front 23

Adaptations of property specifications to suit tenant requirements are

Back 23

tenant improvements.

Front 24

Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher purchase price was obtained later in the afternoon. The broker presented the first offer to the seller that evening. The broker did not inform the seller about the second offer so that the seller could make an informed decision about the first offer. Which of the following statements is TRUE?

Back 24

The broker has no authority to withhold any offers from the seller.

Front 25

Eminent domain and escheat are two examples of

Back 25

involuntary alienation.

Front 26

A school leased a small, commercial shopping strip. When classes started, the other tenants started complaining to the landlord that the students of the school were taking up the majority of the parking spaces, and their customers had no place to park. The lease required that the students park in spaces away from the other businesses. The school asked the students to park in the assigned spaces but most continued to park where it was convenient. The landlord evicted the school. Is this action legal?

Back 26

Yes, the landlord can evict the school for breach of the lease terms.

Front 27

A brokerage firm has an exclusive right-to-sell listing and represents the owner in the sale of the owner's property. Which of the following events will terminate that agency relationship?

Back 27

The owner declares personal bankruptcy.

Front 28

A buyer who owns the property in equity has a(n)

Back 28

executory contract.

Front 29

An appraiser conducting an appraisal of a single-family residence notes that the subject home does not have an attached garage. Three of the comparables the appraiser chooses include attached, finished garages. To account for the garage that is present in each comparable, but not in the subject property, the appraiser will

Back 29

subtract the value of an attached garage from the sales price for each comparable.

Front 30

A buyer defaults on a purchase agreement, and the seller goes to court to force the buyer to buy. The seller's remedy is

Back 30

specific performance.

Front 31

Tenancy with survivorship means the

Back 31

tenancy interest will pass to the surviving tenants upon the death of a co-tenant.

Front 32

Mutual rescission is BEST defined as the

Back 32

dissolution of a contract with the return of all funds or things of value to both sides.

Front 33

A broker has established the following office policy: “All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 10% commission. No lower commission rate is acceptable.” If the broker attempts to impose this uniform commission requirement, which statement is TRUE?

Back 33

The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

Front 34

All of the following are required for a deed to be valid EXCEPT

Back 34

the signature of the grantee.

Front 35

When the seller listed a property, he agreed to pay a 7% commission. The property sold for $190,000. If the listing agent was paid 2%, and the selling agent was paid 1.5%, how much was the broker paid after paying his agents?

Back 35

The answer is $6,650. 7% – 2% – 1.5% = 3.5% to the broker. $190,000 × 3.5% (.035) = $6,650

Front 36

When a mortgage loan has been paid in full, it is important for the borrower to be sure that

Back 36

a satisfaction of the mortgage is recorded in the public record.

Front 37

An annual crop that is considered personal property is called a(n)

Back 37

emblement.

Front 38

All of these are essential elements of a contract EXCEPT

Back 38

earnest money.

Front 39

A homeowner has owned her house for over 50 years. It has fallen into disrepair, but because she lives on a fixed income, she does not have the money to make the needed repairs. She has a considerable amount of equity in the house. What type of loan would BEST provide her the funds to make the necessary repairs?

Back 39

Reverse-mortgage

Front 40

The borrower discovers that the loan is not assumable. What clause did the borrower find?

Back 40

Due on sale

Front 41

A broker lists a property for sale at $100,000 with a 5% commission. He later obtains an oral offer from a prospective buyer to purchase the property. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before it can be put in writing, the buyer backs out and revokes the oral offer. In this situation, the broker would be entitled to

Back 41

The answer is no commission. The broker only earns a commission with the procuring of a ready, willing, and able buyer who purchases the property on the seller's terms. There is no standard rate of commission for a locality, as commission rates are determined by individual agreements between a broker and client.

Front 42

The relationship between a broker and a seller is generally what type of agency?

Back 42

Special agency

Front 43

For the borrower, one discount point equals

Back 43

1% of the loan amount.

Front 44

Under the statute of frauds, all contracts for the sale of real estate must be

Back 44

in writing to be enforceable.

Front 45

A homeowner purchased his home for $80,000 and later sold it for $10,000 more than she paid for it. What percentage of profit did she realize when she sold it?

Back 45

The answer is 12.5%. $80,000 (purchase price) + $10,000 (the increase) = $90,000 (total sales price) ÷ $80,000 (the original purchase price) = 112.5% - 100% = 12.5%. To check your answer: $10,000 (increase from original price) ÷ $80,000 (original price) = 12.5% (.125) (percentage of profit).

Front 46

Typically trust accounts are the name of

Back 46

the firm and principal broker.

Front 47

The historical records of all owners and encumbrances of a specific parcel of real estate is known as the

Back 47

chain of title.

Front 48

The difference between a term loan and a partially amortized loan is the

Back 48

term loan will have a smaller monthly payment with a larger balloon.

Front 49

All of the following events terminate an agency relationship EXCEPT

Back 49

an appraisal with a value less than the selling price.

Front 50

Brokerage commissions charged to sellers in listing contracts for the sale of real property are MOST typically set by the

Back 50

principal broker then negotiated with the seller.

Front 51

All of the following are true of the government’s police power EXCEPT

Back 51

set private controls in certain subdivisions on the types of floor plans, fencing, and house colors.

Front 52

To protect the buyer, many states require a

Back 52

seller's property condition disclosure.

Front 53

The income approach to value would be MOST important in the appraisal of a

Back 53

shopping center.

Front 54

In MOST market areas, rents are determined by

Back 54

supply and demand factors.

Front 55

A buyer makes an offer on a house, and the seller accepts the offer. At this point, the buyer has what type of title to the property?

Back 55

Equitable

Front 56

A home with a warranty that is required by the state and covers merchantability and habitability is most likely a

Back 56

new home.

Front 57

After a broker takes a listing of a residence, the owner specifies that he will not sell his home to any family that is not of the same Asian background as the seller. The broker should do which of the following?

Back 57

Explain to the owner that his instruction violates federal law and that the broker cannot comply with it.

Front 58

An individual who is authorized and who consents to represent the interests of another person above their own interests is a(n)

Back 58

agent.

Front 59

A brokerage represents the owner in the sale of the owner's property, which has a salesperson acting as the listing agent. Which of the following events will terminate that agency relationship?

Back 59

During the listing, the owner of the property dies.

Front 60

The clause in a contract that makes timely performance a condition of the contract is called the

Back 60

time is of the essence clause.

Front 61

Abandoned factories, former dry cleaning properties, and vacant gas stations that may contain environmental hazards are classified as

Back 61

brownfields.

Front 62

Before a buyer makes an offer on a property, the buyer should have received and read the

Back 62

seller's property disclosure form.

Front 63

An appraiser is responsible for

Back 63

estimating value.

Front 64

When hiring an employee rather than an independent contractor, a broker is obligated to

Back 64

withhold employment taxes.

Front 65

The owner of a 20-unit apartment building sold the property to a new buyer. The closing is set for July 20th. At the closing, what will happen with the rent for July and tenants' security deposits?

Back 65

The rent will be prorated and the deposits transferred to the new owner.

Front 66

The ratio of debt to the value of the property is the

Back 66

loan-to-value ratio.

Front 67

Most states require what be included on all real estate advertising?

Back 67

Brokerage firm’s name

Front 68

An individual who obtains a real estate loan and signs a note and a mortgage is known as the

Back 68

mortgagor.

Front 69

A purchase contract contains several personal property items and fixtures that will be transferred upon sale of the property. Which of the following is TRUE?

Back 69

All personal property must be listed in the bill of sale to convey to the buyer.

Front 70

A buyer makes an offer on a seller's house and the seller accepts. Both parties sign the sales contract. At this point, the buyer has what type of title to the property?

Back 70

Equitable

Front 71

The landlord's lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE?

Back 71

The tenant is entitled to make the necessary alterations.

Front 72

In the case of residential real estate transactions for refinancing a loan, which are covered by Truth in Lending, the borrower has how many days in which to rescind the transaction?

Back 72

3 days

Front 73

The remedy available only to the seller as compensation if a buyer is in default is known as

Back 73

liquidated damages.

Front 74

Contracts that transfer interests in real estate should be express

Back 74

written contracts.

Front 75

All of the following events terminate an agency relationship EXCEPT

Back 75

an appraisal with a value less than the selling price.

Front 76

A listing salesperson acting as the seller's agent is holding an open house. The state does not allow dual agency. A buyer starts a conversation about the property and tells the salesperson she is an investor looking for a number of properties. The salesperson states the seller of the property will take less and the salesperson can represent the buyer in the purchase of this property and others. In this case the salesperson

Back 76

is an undisclosed dual agent who acted in bad faith.

Front 77

Rising mortgage rates are an example of

Back 77

external obsolescence.

Front 78

A building is valued at $215,000 and contains four apartments that rent for $470 each per month. The owner estimates that the net operating income is 65% of the gross rental receipts. What is the capitalization rate?

Back 78

The answer is 6.8%. To find the rate, divide the net operating income (NOI) by the value of the building. First, calculate the NOI: $470 (unit rent for one month) × 4 (number of units) = $1,880 × 12 (months in a year) =$22,560, × 65% (.65) (owner's estimate of NOI) = $14,664 (the NOI). $14,664 ÷ $215,000 (building's value) = 6.8% (.068)

Front 79

How much monthly PITI payment can a purchaser qualify for if he earns $6,600 gross income monthly and the lender applies 28/36 qualifying ratios?

Back 79

The answer is $1,848. $6,600 income × 28% (.28) = $1,848 (monthly PITI payment). The lender's 28/36 qualifying ratios mean that the purchaser's total monthly housing expenses should be no more than 28% of his total monthly gross income, and that the purchaser's total monthly obligations must not exceed 36% of his total monthly gross income.

Front 80

A broker assigns a salesperson to work open houses in a new subdivision for a developer that the firm represents. After two months, the salesperson's work has resulted in sales above the developer's expectations, and he offers to pay the salesperson a $1000 bonus. The salesperson may receive the bonus payment

Back 80

only if paid from her principal broker.

Front 81

A legally enforceable contract in which two parties exchange promises to do something for each other is known as a(n)

Back 81

bilateral contract.

Front 82

To be an independent contractor the requirements for the salesperson and principle broker would include all of the following EXCEPT

Back 82

the principal broker withhold taxes from the salesperson's compensation.

Front 83

A farmer bought acreage in a distant county but never went to see the acreage and did not use the land. After the purchase, a woman moved her mobile home onto the land, drilled a well, and lived on the property for twenty years. The woman may become the owner of the land if she has complied with the law regarding

Back 83

adverse possession.

Front 84

A listing contract is BEST described as a(n)

Back 84

personal service contract.

Front 85

A principal broker has hired three new salespeople all with new licenses. In working with the new people the principal broker's most important obligation is to make sure the new salespeople are

Back 85

supervised.

Front 86

A woman has a nine-year-old grandson living with her, and her application for an apartment has been rejected as the community does not allow anyone under the age of 18. Is this permissible?

Back 86

Yes, if the housing complies with regulations for senior housing.

Front 87

A property owner conveys a life estate to her uncle and names her son as remainderman. On the death of the uncle, the son will have what type of estate?

Back 87

Fee simple absolute estate

Front 88

A purchaser buys a home using a mortgage loan from a local lender. The lender promptly recorded the mortgage. Three years later, the homeowner needs additional cash, so he places a second mortgage with a different lender. Based on these facts, which statement is TRUE?

Back 88

The loan from the original lender has priority over the loan made three years later with the new lender.

Front 89

A wooded area with biking and hiking trails is situated between old cotton mills and a housing development. This area is considered a

Back 89

buffer zone.

Front 90

A broker discovers the previous owner of a home she has listed died of AIDS. The broker

Back 90

may not disclose that the previous owner died of AIDS.

Front 91

A sales associate for XYZ Realty listed and sold a $175,000 home. The seller paid a 6% commission of which the sales associate received 2% for listing the property, and 1.5% for selling the property. How much was the brokerage’s share of the commission?

Back 91

The answer is $4,375. Total commission = $175,000 × 6% (.06) = $10,500. Sales associate’s share = 3.5% (2% + 1.5%) $175,000 × 3.5% (.035) = $6,125. $10,500 - $6,125= $4,375 for the brokerage. Or 6% -3.5% = 2.5% for the brokerage times the sales price.

Front 92

The buyer's due diligence period is used to

Back 92

verify the property will meet the buyer's needs.

Front 93

Zoning ordinances normally define specific uses for land that are permitted within a municipality. All of the following are land uses traditionally classified in such ordinances EXCEPT

Back 93

rental.

Front 94

The priority of liens refers to which of the following?

Back 94

The order in which liens will be paid if property is sold to satisfy a debt

Front 95

After real estate has been sold by the state or county to satisfy a delinquent property tax lien, if state law permits, the defaulted owner has a right to

Back 95

redeem the property within the time specified by the law.

Front 96

A real estate broker wants to end racial segregation. As an office policy, the broker requires that salespeople show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of those groups currently live. The broker has prepared a map illustrating the appropriate neighborhoods for each racial or ethnic group. Through this policy, the broker hopes to achieve racial balance in residential housing. Which statement is TRUE regarding this broker's policy?

Back 96

Because the effect of the broker's policy is discriminatory, it constitutes illegal steering regardless of the broker's intentions.

Front 97

Which of the following is a voluntary, specific lien?

Back 97

Mortgage lien

Front 98

A broker was told by her principal not to advertise her property in a certain newspaper, which was out of the area. The broker complied because he

Back 98

must obey the lawful instructions of her principal.

Front 99

A buyer learns from his real estate professional the ownership rights of the seller's property will continue forever and that no other person claims to be the owner or has any ownership control over the property other than the seller. The buyer will have what type of estate upon closing?

Back 99

A fee simple absolute estate

Front 100

When the seller listed a property, he agreed to pay a 7% commission. The property sold for $190,000. If the listing agent was paid 2%, and the selling agent was paid 1.5%, how much was the broker paid after paying his agents?

Back 100

The answer is $6,650. 7% – 2% – 1.5% = 3.5% to the broker. $190,000 × 3.5% (.035) = $6,650

Front 101

After a particularly challenging transaction finally closes, a client gives the salesperson a check for $500 “for all your extra work.” Which of the following statements is TRUE?

Back 101

The salesperson may receive compensation only from her broker.

Front 102

Three friends were concurrent owners of a parcel of real estate. One of the friends died, and his interest passed according to his will to become part of his estate. The deceased friend was a

Back 102

tenant in common.

Front 103

A real estate contract with a minor is

Back 103

voidable.

Front 104

The unfinished area of a single family home is that area

Back 104

not suitable for year-round use.

Front 105

When showing a property, an agent exaggerates the property's benefits. This practice is

Back 105

puffing, which is legal as long as there is no misrepresentation.

Front 106

A property is now worth $117,978. If it has appreciated 6% each year for the past 2 years, what was the original investment?

Back 106

The answer is $105,000. Year 1 $117,978 ÷ 106% (100% + 6%) (1.06) = $111,300 Year 2 $111,300 ÷ 106% (1.06) = $105,000

Front 107

A principal broker uses earnest money placed in the company trust account to pay for the rent owed on the brokerage firm's office. Using escrow funds for this purpose is

Back 107

Illegal conversion.

Front 108

A tire company has a manufacturing plant located in an area that has just been rezoned for residential use. The company is allowed to continue operating the plant under the new zoning classification as a nonconforming use. However, if the plant is destroyed by fire or other hazard, the tire company MOST likely

Back 108

would not be allowed to rebuild the plant in that location under any circumstances.

Front 109

To determine whether a location can be put to future use as a retail store, you would examine the

Back 109

zoning ordinances or regulations.

Front 110

The type of loan that will MOST likely have the lowest loan-to-value ratio is a(n)

Back 110

conventional loan.

Front 111

A seller tells a listing broker his home is serviced by a city water system for both water and sewer services, and indicates city water service on the property disclosure form. The broker suspects that there is no city water to the home because it is in a rural area, but she relies on the seller's statement and says nothing concerning the water system to a buyer. The buyer discovers after the purchase that the home has no city water service. In this case, the broker

Back 111

may be liable for misrepresentation since she should have known about the lack of city water services.

Front 112

A prospective buyer looks at a house listed for sale and asks the listing broker if it is connected to the city water system. The broker does not know the answer, but sensing it is important to making a sale, says "yes." If the prospect relies on this statement, purchases the house, and finds out there is no sewer system, the broker

Back 112

may face court action resulting in cancellation of the sale and money damages.

Front 113

Title insurance covers defects found after closing and not listed on the title commitment. Hidden defects found after closing are covered by title insurance. This would include all of the following EXCEPT

Back 113

a recorded mortgage satisfaction document.

Front 114

An appraiser determines that the cost approach is the most reliable approach in determining the value of an older government building. In estimating the value, the appraiser will MOST likely start by determining the

Back 114

replacement cost.

Front 115

CFPB states all of the following for residential loans EXCEPT

Back 115

the borrower may cancel the first home purchase loan transaction within three days after settlement.

Front 116

Hidden defects, which are not easily discovered during a property inspection, are called

Back 116

latent defects.

Front 117

The amount of commission that is paid to a salesperson is determined by

Back 117

mutual agreement with her broker.

Front 118

When a landowner takes an easy route to his own property over a neighbor's land without the neighbor's knowledge for an extended period of time, the landowner may have acquired a(n)

Back 118

easement by prescription.

Front 119

A contract that has no legal force or effect is

Back 119

void.

Front 120

A void contract is one that is

Back 120

unenforceable.

Front 121

For land to be taken by the government under its right of eminent domain, which of the following MUST apply?

Back 121

The taking must be for a public purpose.

Front 122

The buyer and seller are under contract when the title work is delivered. The buyer discovers the seller does not have clear title to the property. The buyer sends the seller notice to clear the title. The best way for the seller to clear the defective or clouded title is

Back 122

through a quiet title suit.

Front 123

The purpose of an appraisal is to

Back 123

estimate the market value of a property.

Front 124

The income approach as used by an appraiser makes use of which of the following?

Back 124

Capitalization

Front 125

An offer was made for 90% of the $120,900 list price of a property. The offer was accepted, and the lender agreed to negotiate an 80% loan at 8% interest for 30 years. The buyer had a $5,000 earnest money deposit, paid $350 for title expenses, $250 for attorney fees, and had other expenses of $749. How much money does the buyer need to close on the property?

Back 125

The answer is $18,111. $108,810 × 90% (.90) = $120,900 $87,048 × 80% (.80) = $108,810

Front 126

A homeowner received estimates that ranged between $20,000 and $25,000 for repairing damage caused by water leaking into the basement. The owner couldn't afford the repairs, so he constructed a false floor over the entire basement and installed carpet over the floor to conceal the damage. When he listed the house, he did not disclose the leak or the damage to the basement on the property disclosure form. The basement damage is an example of a

Back 126

latent defect, and the listing brokerage firm is not liable for not discovering the false floor over the damage.

Front 127

A person with a physical disability has found an apartment that must be remodeled to accommodate her needs. All of the following are allowed by the landlord in this case EXCEPT

Back 127

the disabled tenant be required to pay a larger security deposit to cover the costs of returning the unit to its original condition.

Front 128

The historical records of all owners and encumbrances of a specific parcel of real estate is known as the

Back 128

chain of title.

Front 129

A buyer purchased two parcels of land. One parcel was one mile square and the other contained 10 acres. If the land cost $2,500 an acre, what was the cost of the land?

Back 129

The answer is $1,625,000. One square mile is 640 acres, so the two parcels together contain 650 acres (640 + 10 = 650). To find the cost, multiply the cost per acre by the total acres: 650 × $2,500 = $1,625,000.

Front 130

When a company furnishes materials for the construction of a house, and the company is NOT paid, it may file a

Back 130

mechanic's lien.