Real Estate
Related to real estate financing, how much is a point? $1 $10 1% of loan value 1% of sale price
1% of loan value
Warren signed a contract with the Samsons for the sale of property he didn't own. What type of contract is this? Enforceable Unilateral Void Voidable
A party can't promise to do something impossible in a contract. Doing so makes the contract void.
Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison. Bracketing Competition Correlation Substituting
Bracketing determines a probable range of property values by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison such as age and transaction price.
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and they added their signatures. Which of the following statements is correct? Breanna accepted the offer Kathy made. Kathy accepted the offer Breanna made. The contract is invalid. The contract is valid but unenforceable.
Breanna accepted the offer Kathy made. Kathy's offer to sell the home was a counter-offer, and when Breanna agreed to the terms of the counter, it constituted acceptance.
Which of the following is an action borrowers take to temporarily lower the interest rate on their mortgage loan? Buydown Down payment Gap financing Usury
Buydown
Chrissy lives in Lake Ridge Estates, a neighborhood in which vinyl siding may not be used on homes. This HOA regulation is what kind of private land control? CC&R Deed restriction Law Regulation
Conditions, covenants, and restrictions apply to an entire subdivision, while deed restrictions apply to a specifically named property
Net operating income is determined by subtracting total operating expenses from the ______. Effective gross income Potential gross income Scheduled rent Vacancy and collection losses
Effective gross income An appraiser finds total operating expenses by reconstructing the operating statement and subtracting the total expenses from effective gross income to find net operating income.
What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach? Broad and specific Components and measures Elements and units General and detailed
Elements and units There are two categories of comparison: elements, which look at physical and locational characteristics, and units, which look at the numbers.
Select the statement that accurately describes an abstract of title. A title company representative must certify the abstract of title. Few states require an abstract of title when conveying property. The chain of title documents the information found during the title abstract process. Title abstracts provide data for the title company's title search.
Few states require an abstract of title when conveying property. The abstract of title process is costly and lengthy; only a few states require this process when conveying property.
In Maryland, the Protection of Homeowners in Foreclosure Act describes the role of and sets guidelines for the actions of ______. Fannie Mae Foreclosure consultants Lenders Short sale agents
Foreclosure consultants
Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns a(n) ______. Estate for years Freehold estate Leasehold estate Ownership estate
Freehold estate A freehold estate implies ownership for an unlimited amount of time—the "free" refers to the ownership agreement being free of an end date.
Which of these is NOT an example of agency coupled with interest? Carma agrees to list Tera's property for free if Tera signs an agreement to purchase her new home through Carma. Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller. Jeanine agrees to charge no commission from her buyer's purchase of a four-plex if the buyer agrees to pay Jeanine a 3% fee for each unit for which she finds a tenant after the sale. Rhoda loans Carl the money to catch up his mortgage payments in return for a listing agreement to sell Carl's home for a 4% commission.
Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller. Agency coupled with interest is an agency relationship in which a licensee is given some sort of interest in or right to a principal's property. A standard commission-based transaction isn't agency coupled with interest.
Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? A potential bonus from the buyer Implied agency and undisclosed dual agency Implied friendship Undisclosed single agency
Implied agency and undisclosed dual agency
The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this? Aesthetic zoning Downzoning Incentive zoning Spot zoning
Incentive zoning Incentive zoning occurs when a municipality allows a property owner to proceed with an otherwise-prohibited type of construction in return for improvements that will benefit the community.
Which of the following statements about the fiduciary duty of confidentiality is true? It doesn't extend to material facts relating to the property. It encompasses any and all information the client tells the agent, not just confidential information. It ends with the termination of the agency agreement. It never conflicts with the duty of disclosure.
It doesn't extend to material facts relating to the property. Agents are required to keep their client's confidential information confidential, but only if the information doesn't include material facts relating to the property.
Carlton listed his property with an agreement end date of August 31. The property went under contract on May 12 and closed on July 2. When did Carlton's listing agreement officially terminate? August 31 July 2 May 12 Upon revocation by the agent
July 2 The listing agreement officially terminated on July 2, the date the transaction closed and was complete.
Shelby listed her seller client's condo on April 4. It went under contract May 16. That contract fell through on May 29. The listing agreement expired on July 4, with no other offers or contracts. On what date does the five-year record-retention clock start ticking? April 4 July 4 May 16 May 29
July 4 The five-year retention period begins on the date the transaction closes, or, if the transaction didn't close, the last activity date on the transaction (e.g., listing agreement expiration date).
Which of the following is an example of sub-agency? Kermit is represented by Bert, an agent with Street Realty. Today they're seeing Oscar's house, which has been listed by Oscar's agent, Ernie, from Energy Realty. Rita is a licensee with Hawthorne Realty. She has a client, Dinah, who's selling her condo. Rita thinks Dinah's house will be perfect for Ruby, a customer. Tim and Tom are both licensees with Acme Realty. Tim is the listing agent on a home where Tom represents the buyer.
Kermit is represented by Bert, an agent with Street Realty. Today they're seeing Oscar's house, which has been listed by Oscar's agent, Ernie, from Energy Realty. Only the agent working with a buyer customer on behalf of another firm's listing is an example of sub-agency. In this case, that would be Maurice.
Ellen just completed a whirlwind continuing education marathon, taking all 15 of her required CE hours in the span of one weekend with a company called Last Minute Real Estate Education. It's just in the nick of time, too: Ellen's license is set to expire the following week. How will the CE hours get reported to the commission? Ellen must create digital copies of her completion certificates and email them to the commission's license renewal email address. Ellen must send her completion certificates to the commission via certified mail. Last Minute Real Estate Education must electronically submit Ellen's completion data to the commission. Last Minute Real Estate Education must issue Ellen a completion certificate, which she must then submit electronically to the commission.
Last Minute Real Estate Education must electronically submit Ellen's completion data to the commission.
Jacob's family has operated a neighborhood grocery store in the community since before the land was zoned residential. Jacob continues to operate the store legally. What would you call this? Mixed use Non-conforming use Residential retail use Special use
Legal, non-conforming use of land occurs when a structure or business was legally established according to zoning ordinances at the time, but does not meet current zoning and building regulations. This is called being "grandfathered."
Which of the following is the price a lender believes the property will bring at a foreclosure sale? Insured value Investment value Mortgage value Value in use
Mortgage Value Lenders won't lend on what they can't recoup. Therefore, the loan amount will be based on what a lender would hope to recoup, should a foreclosure sale be necessary.
John's property is shaped like a triangle. The street side is 185 feet, and from the street to the longest point of the triangle is 225 feet. How do you calculate the square footage of John's property? Add 185 to 225. Multiply 185 by 225, then divide by four. Multiply 185 by .5; multiply your answer by 225. Multiply 185 x 225.
Multiply 185 by .5; multiply your answer by 225.
On what type of listing (or listings) may a net listing be used in states where they are legal? Open, exclusive agency, or exclusive right-to-sell listings Open listings only Open or exclusive agency listings only
Net listings are only related to the amount of compensation received, and they may be used with many types of listing agreements.
The Maryland Commission on Civil Rights consists of how many members? Four Nine Six Thirteen
Nine
The best way to start comparative market analysis data collection is to use properties that sold when? 18 to 24 months ago Between two and three years ago In the last 12 to 18 months No later than three to six months ago
No later than three to six months ago
Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act? No; commercial and business loans are exempt from RESPA requirements. No; RESPA only applies to loans obtained from private lenders. Yes; all loans secured by real estate are subject to RESPA requirements. Yes; because she obtains the loan from a federally insured financial institution, the loan is subject to RESPA requirements.
No; commercial and business loans are exempt from RESPA requirements.
A brokerage firm that hires licensees as employees instead of as independent contractors must ______. Advise the state licensing regulators of the non-traditional working relationship Avoid controlling their activities too closely to ensure proper worker classification Offer incentive bonuses to ensure a motivated workforce Pay licensees a regular salary regardless of the revenue they generate
Pay licensees a regular salary regardless of the revenue they generate Brokerages that hire licensees as employees must factor in the expense of a regular payroll, even when the sales volume is low.
Which statement about radon testing is true? It can only be performed by a licensed professional. It is not necessary. Test kits are available for purchase. Test kits are not available to the general public.
Test kits are available for purchase but must be sent to a laboratory for analysis. A radon technician can also place the test, pick it up and send it in for testing. Licensees should advise all buyers to have homes tested for radon regardless of the location.
After getting into a fender bender, Parker had to buy a new car. To make the down payment on the car, he had to skip a couple of his mortgage payments. He received a notice from his lender indicating the remaining amount of his loan is due immediately and in full. What clause in his mortgage stipulates this? Acceleration Alienation Defeasance Due-on-sale
The acceleration clause gives the lender the right to make all money owed immediately due and payable if the borrower defaults.
Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn't apply to temporary decorations but only to permanent ones. Their homeowners association disagrees. Which entity enforces subdivision covenants? The civil court system The homeowners association The municipal code enforcement agency The original developer of the neighborhood
The civil court system Covenants are enforced through the court system if an agreement can't otherwise be reached.
Shirley's lender discharged the mortgage lien on Shirley's property after processing her final payment. Which clause requires the lender to take this action? Acceleration Alienation Defeasance Due-on-sale
The defeasance clause means the lender may not pursue the borrower for additional funds when the loan balance is paid in full.
Which statement regarding fee simple defeasible estates is true? A fee simple absolute estate becomes fee simple defeasible when the owner dies intestate. A fee simple defeasible estate is granted upon the completion of a court-ordered condition. The estate includes only some of the bundle of legal rights; inheritability isn't included. The estate includes the full bundle of legal rights, but ownership is based on a condition.
The estate includes the full bundle of legal rights, but ownership is based on a condition. A fee simple defeasible estate includes the full bundle of legal rights, but ownership may be terminated if the required condition is violated.
The question, "What's the purpose of this appraisal?" can be answered by this first step of the appraisal process. Determine highest and best use. Estimate land value. Identify data needed. State the problem.
The first step is to state the problem so the appraiser can identify what data is needed. After that, the appraiser will identify the data needed, gather it, and analyze it.
To which of the following are most of the buyer's closing costs typically related? Hiring a broker to find a buyer for the property Negotiated repairs on the property Providing clear title to the property The mortgage loan the buyer's obtaining
The mortgage loan the buyer's obtaining A large part of the buyer's closing costs will be associated with the new mortgage loan, including origination fees and points, the appraisal, and the credit report.
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______. A lease option An act of waste An estate at sufferance A possessional prerogative
This is called an act of waste. Acts of waste damage or deteriorate a property's value.
Picture a drawing of a section of land. Where is Township 1 located? Lower left (SE) corner Lower right (SW) corner Upper left (NW) corner Upper right (NE) corner
Upper right (NE) corner Section townships are numbered beginning in the upper right (NE) corner and continue in a zigzag pattern.
The Richards family farm is located on a 10-acre parcel of land, which is very rare to come by in their area. However, the house is rundown and in need of many repairs. Most buyers in the area are looking for a move-in ready home, which means they would need to either look elsewhere or wait several months for the home to be renovated. Which factor is most negatively impacting the value of the Richards' property? Demand Scarcity Transferability Utility
Utility Although large parcels in the area are scarce, buyers are unwilling to buy and wait to live in a property that needs significant repairs, which is affecting the value.
In which form of co-ownership is a person's ownership inheritable? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty
With tenancy in common, if one owner dies, that person's ownership is inheritable. It doesn't automatically pass to the other owners as it would with joint tenancy.
You represent a seller as a listing agent. Do you owe any duties to buyer agents?
You owe buyer agents (or seller agents, if you're working with the buyer) the duty to cooperate on showings as well as honesty and fairness.
Generally, what's the common range for loan origination fees? 1% to 3% 1% to 5% 2% to 5% 3% to 5%
1-3 Lenders usually charge a loan origination fee between 1% and 3%. Loan origination fees are nearly always negotiable, but most borrowers don't know this!
In order to qualify as one of the five real estate professional members of the Maryland Real Estate Commission board, how many years of real estate experience must you have? 10 Five Seven Six
10
Related to title insurance, what is "subrogation"? A covered party grants permission to the title company to pursue the party who caused a claim or loss. The act of conveyance when the seller turns over all property rights to the buyer with a clear, marketable title. The process by which the lender receives coverage under a title insurance policy the borrower has purchased. The process by which the title policy pays out any claims to the buyer or lender.
A covered party grants permission to the title company to pursue the party who caused a claim or loss. When the title company is forced to pay a claim against the policy, the covered parties give the title company permission to pursue the party who caused the loss. The covered parties are said to "subrogate" their rights to the title company.
Jansen and his listing agent just left the closing on Jansen's house. What kind of notice does Jansen, his agent, the buyer, and the buyer's agent have regarding the sale of Jansen's house? Actual notice Constructive notice Legal notice Personal notice
Actual notice All these parties have actual notice of the property's sale because, even though they didn't witness recording of the documents, they attended the closing and observed the documents changing hands.
Which of the following statements is true about zoning classifications? A home business would be considered an accessory use. A residential property may only have one use. Condos are always commercial property. Multi-family housing is zoned commercial.
An accessory use is one that's subordinate but related to the main use of the property
When a government entity exercises its powers to create zoning ordinances, what must be followed? Federal zoning codes The area's comprehensive plan The state's zoning codes Universal design standards
An area's comprehensive plan outlines its future development plans and goals of the area. Zoning decisions should follow this plan.
Saul was unhappy after he and Janelle liquidated their business. Janelle sold some items for less than he'd initially agreed to and he wanted the full price to be included in the profit split. He wanted to sue, but he was required to pursue other options. What contract clause kept Saul from being able to sue? Arbitration Choice of law Damages block Liquidated damages
Arbitration An arbitration clause in a contract specifies that any contract disputes will be settled through arbitration, rather than through the court system.
Ray purchased a new home and soon discovered an issue with one of the windows. He filed a claim with the warranty provider, but it was denied. After mediation, the issue still remains unresolved. What is the most common next step? Arbitration A second round of mediation Condemnation Litigation
Arbitration Warranties will detail the course of action if a claim is disputed. Most often, mediation occurs first, then arbitration. The arbitration decision is generally binding and final. The disputed claim process seeks to avoid or limit litigation.
Datums and benchmarks are used for ______. Calculating area Determining land acquisition costs Measuring distance Measuring elevations
Measuring elevations
Which of the following is an example of price fixing? A brokerage requires all licensees to offer a fair cooperative brokerage fee. Three brokerages agree to purchase office supplies together to obtain a bulk discount. Twelve brokerages discuss compensation of associated independent contractor licensees. Two brokerages determine a standard commission rate.
Two brokerages determine a standard commission rate. Collusion must occur on pricing for the public in order for price fixing to occur.
Which of the following is true about ownership or title to a property? Constructive notice to the public of real property ownership occurs when the deed is recorded. The last to record has priority. The seller is responsible for paying for owner's and lender's title insurance. Title isn't finalized until the deed has been recorded.
Constructive notice to the public of real property ownership occurs when the deed is recorded. Recording and possession give the public constructive notice that ownership has changed hands. It also protects the buyer from others' claims on the property.
Real estate licensee William is preparing a sale agreement that will include an unusual circumstance. What's his best course of action? Consult an attorney. Create his own forms. Use an existing form and write an addendum that covers the unusual circumstance. Use existing forms but modify the language to address the unusual circumstance.
Consult an attorney It's possible that William could still use an existing form, but it won't cover the unusual circumstance. William should not write an addendum that covers it. His best bet is to consult an attorney.
Which of the following is NOT a relief option that the nine-member Maryland Commission on Civil Rights may order if it determines that housing discrimination has occurred? A civil penalty awarded to the state An injunction to prevent further discriminatory behavior Criminal action against the party who discriminated Training for the party who discriminated
Criminal action against the party who discriminated MCCR may seek civil action and order: monetary relief for the victim, a civil penalty awarded to the state, injunctions to prevent further discrimination, training for the party who discriminated, and reasonable accommodation.
While conducting a property valuation site visit, Todd realizes that nearly half of the property has no improvements on it. There's no apparent reason why the land would be unusable, which indicates that it is _____. Additional land that may have potential problems Excess land that could be separated and sold Surplus land with no additional value Underutilized land that needs to be developed
Excess land that could be separated and sold The correct term to use for unused land that could be separated and sold is "excess."
Stella owns a building in an area of town that's being revitalized. Local property owners believe property values will increase considerably over the next 10 years. Stella wants to entice long-term tenants with a low initial rent but have the flexibility to increase rent as her property's value increase. What type of lease should she consider? Graduated Gross Net Percentage
Graduated leases permit an increase in rent during the lease period. The increase can be based on a number of factors, such as changes to appraised value, index, or time.
Hannah wasn't able to get the financing to open her boutique, so her mother came on as a silent partner and provided additional cash. Hannah and her mother have an agreement that states Hannah's mother can't be held financially or legally liable if there are any problems with the store. What type of contract clause is this? Arbitration Choice of law Damages block Indemnification
Indemnifying one of the contract parties releases that party from all liability or loss.
Which of these is an example of puffery? Kari's ad boasts that the property is "just blocks from the proposed metro light rail station." Katherine's ad for her newly renovated home states, "New from the studs up." Her carpenter might tell you a different story. Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay." Kim notes that the property "overlooks a serene, peaceful green space." It's next to a cemetery.
Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay." Kevin's ad is the best example of puffery. Katherine's ad is fraudulent, and Kim's is in poor taste but probably true.
Which of the following scenarios best describes a net listing? Carmel is selling her condo for $280,000 and is offering 6% commission to the listing broker. Jason is listing his duplex for $400,000 but reserves the right to find his own buyer and not have to pay a listing commission. Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount. Ralph is selling his townhome for $225,000 and is paying a brokerage fee of $25,000.
Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount. A net listing commission involves commission of an indeterminate amount and depends on the sales price. Net listings are illegal in several states.
The Maryland Real Estate Commission received a complaint claiming that Michael, a licensed electrician, was receiving referral fees from Own It Realty Group in exchange for giving sub-par wiring the green light during inspections. What's the maximum penalty MREC can impose upon Michael?
Nothing; MREC doesn't have jurisdiction over licensed electricians. MREC has the power to investigate and discipline real estate licensees and those who practice real estate without a license. MREC doesn't have jurisdiction over Michael, but you can be sure that Own It Realty Group is now on its radar.
Maryland salesperson Seema is new to the real estate business, and she's having trouble getting her sales off the ground. She's considering offering some incentives. Which of the following incentives would be legal according to the Maryland Code of Ethics? Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days Offering a 1% reduction in her commission rate to the first 10 seller clients who list with her Offering to buy a washer/dryer set for the first 10 buyer clients who sign on with her Offering to waive the administrative fee for the first 10 buyers who sign on with her
Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days Licensees may not use contests or offer prizes to induce a consumer to enter into a brokerage agreement or to influence a buyer to make an offer on a particular property. Incentives may be offered provided they are available to all on the same basis.
Why do many property managers have separate operating and trust accounts? All states have laws requiring separate accounts. Federal law requires separate accounts. It increases the amount of management fees that can be charged to the property owner. It prevents the misuse of tenant funds for operating expenses.
Property managers must be careful not to commingle client trust funds with operating funds. Many property managers strongly believe these funds should be kept in separate accounts. Some states even require it.
Which of the following situations may result in inverse condemnation? Property taxes rise because of an increase in property value. Property values decrease because adjacent property was rezoned. Property values decrease because the property was rezoned. The government takes private property for public use and compensates the owner.
Property values decrease because adjacent property was rezoned. With regard to zoning, inverse condemnation is related to a loss of value due to downzoning of adjacent property.
Victor's family has always owned this particular lake house. When he was little, he remembers the "beach" being no more than four feet wide before the waterline. Now Victor brings his own children to the lake house, but the beach is almost seven feet wide. What natural process could explain the beach being bigger? Avulsion Erosion Reliction Riparian
Reliction is the process by which water gradually recedes, which reveals new land.
Shanice got her real estate license just in time to help her father sell the condo they jointly own in Harbor East in Baltimore. Even better, another agent in her brokerage found a buyer, so they were able to keep the commission within the brokerage. Shanice made sure that both parties were fully aware of and consented to the dual agency arrangement in writing. What is Shanice forgetting? She forgot that she isn't allowed to be a principal in a dual agency transaction. She forgot that she isn't allowed to sell a property in which she has a personal interest. She forgot to disclose that she has ownership interest in the property. She forgot to order the condo resale packet before placing the property on the market.
She forgot to disclose that she has ownership interest in the property. Licensees who are buying/renting or selling/leasing property for themselves must disclose, in writing, their licensed status no later than when they submit the offer or list/offer the property for sale.
Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC?
She must take three training classes through the firm. Brokerage firms should avoid requiring attendance at specific training courses, though they should require that licensees take the steps necessary to maintain their license.
Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure? At closing The Closing Disclosure isn't required for a HELOC. Three days before closing Three days from her loan application date
The Closing Disclosure isn't required for a HELOC. Home equity lines of credit aren't subject to TRID disclosures, so Trinity's lender isn't obligated to provide a Closing Disclosure, though other disclosure forms may be require
Which of these statements accurately describes finance- and housing-related legislation? As a stipulation of the Housing and Community Development Act, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days. The Americans with Disabilities Act added familial status and disability (both physical and mental) to the existing protected classes. The Equal Credit Opportunity Act of 1974 required lenders to provide consumers with equal access to credit and prohibited credit discrimination based on just the three protected classes of race, color, or national origin. The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.
The Fair Housing Act of 1968 made race, color, national origin, and religion protected classes and prohibits housing and housing financing discrimination. The ECOA prohibits discrimination based on any protected class.
After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title? File a suit to quiet title. File suit against the lender. File suit against the seller. Have a second title search performed.
The buyer may file a suit to quiet title. If a suit is filed, evidence is submitted to a judge for review. The judge will either remove or modify a cloud and will verify ownership.
What is an example of a gross lease? The owner pays all property taxes, maintenance, and insurance costs. The tenant and owner split the property taxes, maintenance, and insurance costs equally. The tenant pays all property taxes, maintenance, and insurance costs. The tenant pays property taxes and splits maintenance costs with the owner.
The owner pays all property taxes, maintenance, and insurance costs.