A listing agent tells a prospective buyer, without the seller's permission, that the seller will accept $20,000 less than the list price. Which fiduciary duty has the agent breached?
- Accounting
- Obedience
- Confidentiality
- Reasonable care
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C. Confidentiality
An agent must put the client's interests first and keep the client's price and motivation confidential. Revealing the seller's bottom line weakens the seller's bargaining position. Accounting concerns the handling of money.
Reference: Fiduciary duties: loyalty and confidentiality
A deed of trust has three parties. Which party is the lender?
- Trustor
- Trustee
- Grantee
- Beneficiary
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D. Beneficiary
In a deed of trust the borrower is the trustor, a neutral third party is the trustee who holds title as security, and the lender is the beneficiary. The trustee is often confused with the lender but only holds title on the lender's behalf.
Reference: Deed of trust parties: trustor, trustee, beneficiary
Because of an unusually shallow lot, an owner cannot build a house that meets the required rear setback. To build anyway, the owner should apply for a:
- Variance
- Rezoning of the area
- Nonconforming use
- Building code waiver
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A. Variance
A variance permits a deviation from the zoning rules when strict application would cause a hardship arising from the property itself. It does not change the zoning of the district, and a nonconforming use is one that already existed before the rule.
Reference: Zoning variances
A home sells for $325,000 at a 5% commission. The listing brokerage receives half of the total commission, and the listing salesperson is paid 60% of the brokerage's share. How much does the salesperson receive?
Answer in dollars.
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4875 dollars
Total commission: $325,000 x 0.05 = $16,250. Listing brokerage share: $16,250 x 0.50 = $8,125. Salesperson: $8,125 x 0.60 = $4,875.
Reference: Commission splits
A seller bolted a chandelier to the dining room ceiling years ago. The sales contract says nothing about it. At closing, the chandelier is generally treated as:
- A trade fixture the seller may remove
- Personal property the seller may remove
- A fixture that stays with the house
- An emblement that belongs to the seller
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C. A fixture that stays with the house
An item permanently attached to the building is a fixture and transfers with the real property unless the contract excludes it. It is not personal property once attached, and trade fixtures apply only to items a business tenant installs for its trade.
Reference: Fixtures; method of attachment test