Question 1) 6 Points.

I have uploaded a closing statement on Canvas. What is the EFFECTIVE sales price of the property?

Question 2) 6 Points

Lessor signs a lease with a lessee. It is a triple net lease and the lessee is also responsible for on-going repairs and maintenance of the unit. In the middle of one of the worst snowstorms in the last 20 years, the heat went out in Lessee's unit. Lessee immediately called several HVAC repair companies. 6 of the 7 repair companies Lessee called came out to inspect the unit. Out of the 6 that looked at the problem, 5 of them told Lessee the heating unit cannot be fixed and has to be replaced. One of them told Lessee, he might be able to fix it but he needs at $2,000 deposit and it might take him a week to fix it, given his overloaded schedule. Lessee then called the Lessor, but Lessor did not answer his cell phone. Lessee followed up with multiple phone calls, texts, and emails...no response. After several days without heat in the severe snowstorm, Lessee abandoned the rental unit, and subsequently refused to pay rent for the remaining term of the lease. Lessor sued Lessee for the unpaid rent. Who will most likely win the lawsuit based on which breach of contract ?

Question 3) 6 Points

An owner of a parcel of vacant land and a prospective buyer enter into a written contract. For a nonrefundable fee, the owner agrees to keep the prospective buyer's offer on a property open--for a mutually-acceptable period of time. If the prospective buyer decides to buy the vacant land, both parties have agreed to a purchase price. If the prospective buyer decides against purchasing the property, the owner will keep the nonrefundable fee received from the prospective buyer at the time the contract was signed. Which term most accurately describes the contractual agreement between these two parties ?

Question 4) 8 Points

Selma has decided to sell her house in Northridge and wants to net $900,000 after commissions. She decides on list price of $1,000,000. Selma lists her property with XYZ Realty, ABC Realty, and MNO Realty. In each listing agreement, Selma has agreed to pay a commission of 5% of the sale price when the firm finds a ready, willing and able buyer and a sale is consummated. XYZ Realty company produces an offer $900,000 all cash within 10 days of the listing agreement being signed. ABC Realty produces an offer of $950,000 within 11 days of the listing agreement being signed, with the buyer offering 5% cash down, and applying for 95% financing. MNO Realty produces a full price offer of $1,000,000 , with the buyer's contingency of selling their residence for $900,000 in Chatsworth. What type of listing did Selma sign and which offer will she most likely accept and why ?

Question 5) 8 Points

There is a mixed-use retail/office building totaling 25,000 SF on Ventura Boulevard in Encino. The ground floor retail space (50%) of the building is leased for $2.00/SF Triple Net. The second office spaces (50%) of the building are leased for $3.00/SF, Full Service Gross. There is no vacancy, the property is family operated and managed and has long-term 20 year leases in place. What are the annual operating expenses?

Question 6) 16 Points

Paul's Pizzeria as signed a new five year lease for 1,000 SF of restaurant space in a shopping center in Granada Hills. The base rent on the lease is $3.00/SF, NNN with 3% annual rent increases to account for inflation. However, the lease has a percentage lease clause, that states the lessee will pay an additional 3% of gross annual sales over $1,200,000. Gross sales for the tenant are estimated to be as follows:

Year 1 - $ 1,200,000

Year 2 - $ 1,100,000

Year 3 - $ 1,400,000

Year 4 - $ 1,090,000

Year 5 - $ 1,500,000

What are the estimated annual lease payments for:

Year 1 ?

Year 2 ?

Year 3 ?

Year 4?

Year 5 ?