TRUE/FALSE:

True 1. The text book is out of date as far as business organizations used for real estate investment.

True 2. A Limited Liability Company LLC is the best form of organization for real estate investment.

MULTIPLE CHOICE:

3. Saxon Construction is developing a subdivision of single family homes. The real estate market has taken a down turn and Saxon has negotiated a sale of the final eight lots to Whister who will build a 300unit apartment complex on the lots. There is a deed restriction for the area that limits construction to singlefamily dwellings. Saxon amends the deed restriction. Which of the following is correct?

a. Saxon cannot amend the deed restrictions

b. Saxon can amend the deed restrictions for those 8 lots

c. The apartments still fit the singlefamily dwelling description in the restriction

d. None of the above

4. Bill Blass is accepting bids for construction of a new office building on his centrallylocated property. Blass wants to be certain that he is protected in the bidding process so that if the selected construction firm backs out after acceptance but before construction, he is compensated for the delay in finding a new contractor. Blass needs:

a. A bid bond.

b. A performance bond.

c. A construction bond.

d. A payment bond.

e. None of the above

5. Homer Sidway hired Alma Dixson, dba Home Improvers, to add a room onto his existing home. Sidway had done some electrical work in his attic some years earlier. He had done so without a permit, and there were exposed wires and other problems with the workmanship. When Dixson went into the attic to do the wiring for the new room, he was injured as result of a shock from one of the wires. Homer:

a. Is liable to Alma for the failure to warn about the attic.

b. Is not liable since Alma was hired for his expertise and is expected to know these things.

c. Is not liable because Alma is a contractor and not an employee.

d. Is not liable because the contractor must carry insurance.

e. None of the above

MATCHING:

______ 6. Under a(n) _____ , the general contractor is not required to pay the subcontractors until the purchaser/owner has paid the general contractor.

______ 7. A(n) ______ bond is a guaranty by a bonding company that a project will be completed.

_____ 8. To protect those who already own homes in a subdivision, the common law doctrine of _____ exists.

______ 9. In addition to the plat map, the developers will record restrictions or _____ for the subdivision.

A. Cost-Plus Formula D. Payment G. Protective Covenants J. Bid Notice

B. Equitable Servitudes E. Flow-Down Clause H. Performance K. Lender

C. Annexation F. Architect I. Deed Restrictions L. ULPA