Question: Match each lease type with its definition.

Answer Options: Gross lease Net lease Percentage lease Ground lease tenant pays fixed rent while owner pays ownership expenses tenant pays some ownership expenses rent based partly on sales long-term lease of land.

Answer: Gross lease — owner pays ownership expenses; Net lease — tenant pays designated ownership expenses; Percentage lease — rent based partly on tenant sales; Ground lease — long-term lease of land. 45

Question: Annie pays office rent and utilities, while the owner pays taxes, debt service, maintenance, insurance, and other ownership costs. What type of lease is this?

Answer Options: A. Gross lease B. Land lease C. Net lease D. Percentage lease.

Answer: A. Gross lease. 46

Question: A licensee is working with two buyer clients interested in the same property. What disclosure may be required?

Answer Options: A. Agency relationship disclosure B. Disclosure of contemporaneous offers C. Dual-agency disclosure D. Notification of non-agency.

Answer: B. Disclosure of contemporaneous offers. 47

Question: An offer states that it will remain open for 72 hours. What is true?

Answer Options: A. It becomes bilateral when earnest money is deposited B. It is unilateral C. It may be withdrawn by the offeror before acceptance D. It may be withdrawn only with the offeree’s approval.

Answer: C. It may be withdrawn by the offeror before acceptance. 48

Question: Sellers sign an offer and instruct their agent to return it to the buyer, but acceptance has not yet been communicated. Has a contract been created?

Answer Options: A. Yes, because the agent possesses it B. Yes, because it was delivered to the agent C. Yes, because the sellers signed D. No, because acceptance has not been communicated.

Answer: D. No, because acceptance has not been communicated. 49

Question: A triple-net lease is most likely associated with which property type?

Answer Options: A. Industrial B. Office C. Residential D. Retail.

Answer: A. Industrial property. 50

Question: A triple-net lease is most likely associated with which property type?

Answer Options: A. Industrial B. Office C. Residential D. Retail.

Answer: A. Industrial property. 51

Question: What is most likely to happen under a land contract?

Answer Options: A. Vendor pays all expenses until final payment B. Vendor makes installment payments C. Vendor retains legal title until final payment D. Vendee receives possession while vendor retains equitable title.

Answer: C. Vendor retains legal title until final payment. 52

Question: When should an agent give a buyer a copy of the completed offer to purchase?

Answer Options: A. Only after seller acceptance B. Only if a commission agreement exists C. When the buyer signs it D. Within three business days.

Answer: C. When the buyer signs it. 53

Question: Nora has a signed purchase agreement but has not yet closed. What interest does she have?

Answer Options: A. Equitable title B. Legal title C. Pending title D. No legal interest.

Answer: A. Equitable title. 54

Question: When is an enforceable purchase agreement formed?

Answer Options: A. When the seller signs B. When the buyer knows of the seller’s written acceptance C. When earnest money is received D. At closing.

Answer: B. When the buyer knows of the seller’s written acceptance. 55

Question: Lisa and Leonard jointly own a lot, and Hi-Tech, Inc. is buying it. Who must sign the purchase agreement?

Answer Options: A. Lisa, Leonard, and Hi-Tech’s authorized representative B. Those parties plus the settlement officer C. The sellers, listing agent, and corporate president D. Only one seller and the corporate owner.

Answer: A. Lisa, Leonard, and Hi-Tech’s authorized representative. 56

Question: A developer wants a long-term lease of land on which to construct a strip mall. What lease will most likely be used?

Answer Options: A. Gross lease B. Ground lease C. Net lease D. Percentage lease.

Answer: B. Ground lease. 57

Question: Harry lets Mary occupy his leased premises for three years while he remains responsible to the landlord. What agreement is this?

Answer Options: A. Assignment B. Novation C. Sublease D. Surrender.

Answer: C. Sublease. 58

Question: Tom accepts Jim’s offered price but changes closing from 90 to 60 days. Is a contract formed?

Answer Options: A. No, because there was no meeting of the minds B. Yes, because both signed C. Yes, because they agreed on price D. Yes, because Tom initialed the change.

Answer: A. No, because there was no meeting of the minds. 59

Question: May a buyer submit an offer on a property that is already under contract?

Answer Options: A. Yes, but the seller’s agent cannot present it unless the first contract fails B. Yes, but the seller’s agent may refuse it C. Yes, offers may still be submitted and presented D. No, it would be contract interference.

Answer: C. Yes, offers may still be submitted and presented. 60

Question: Which lease would likely have the lowest base rent?

Answer Options: A. Gross lease B. Net lease C. Net-net lease D. Net-net-net lease.

Answer: D. Net-net-net lease. Environmental issues and mortgage financing 61