65. Private trusls are subject to the rule against perpetuities. Take Home Part: Part 1 - Multiple Choice (30 points) - Insert the best choice onto Page 1 of the Take Home Answer Sheet 1. Seth properly engaged Bret to find a buyer for Seth's personal residence (a house and the land on which it is and in exchange promised to pay Bret a 5% commission on the sale. Bret found interested buyer Barbad entered into a real estate contract for Barb to purchase the residence for $500,000, being the full fair market value for the residence. Closing of the sale is to take place thirty days from the date of the contract of sale. In this situation a. Bet is an agent for Seth and has fiduciary agency responsibility to him regarding dealings with Baro b. Bret is a mutual agent for Seth and Barb and has fiduciary agency responsibilities to both Seth and Barb c. Brel is not an agent of either Seth or Barb, as agency requires loyalty, and one cannot be loyal to two opposing parts d. Although Bret is Seth's agent, al closing both Seth and Barb must share payment of Bret's commission as they both benefitted from the transaction 2. Under usual brokerage terms Bret above will earn his commission on this sale a. upon producing a ready, willing, and financially able purchaser during the period of the brokerage agreement b. only upon actual closing of the sale/purchase transaction c. only if Bret and Seth engaged in an exclusive right to sell brokerage agreement d. only if Barb can swing the purchase without mortgage lender financing 3. During the thirty days between contract for the sale/purchase and closing. Barb above should a. apply for any mortgage loan that may be necessary for her to complete the purchase b. have title to the property and related matters searched to discover any marketability issues c. have a physical inspection of the property made as to structural, environmental, and infestation issues d. all of the above e. none of the above, as real property transactions are subject to caveal emptor, and so any money spent on these matters would be wasted 4. At closing, the highest quality deed Barb above might receive from Seth is a a general (full) warranty deed b . special warranty deed c. quitclaim deed d. none of these 5. After closing on the above transaction a. the efforts of all parties are complete and there is nothing left that is desirable to do b. Barb would be wise to have her deed immediately recorded in the appropriate property office c. Any mortgage lender that supplied financing to Barb would be wise to have its mortgage immediately recorded in the appropriate property office d. Barb should first have the property inspected for marketability problems e. a. and c. are correct