Ree 4433 exam 2 case study and example questions
Case studies Chapter 12
1. Caldwell listed property with Burnette, a broker, at $3,000 per acre. The listing was open. Burnette showed the property to Donaldson, who stated that the price was too high. He requested Burnette to persuade Caldwell to reduce it. Burnette submitted an offer of $2,750 to Caldwell, but Caldwell would not accept the lower price. Several months later, Caldwell listed the property with Crutchfield at $2,500. Crutchfield showed the property to several prospective purchasers, including Donaldson. Donaldson offered $2,750, and the property was sold to him at that price. When Burnette heard of this, he demanded a commission. When Caldwell refused, Burnette sued. Would Burnette be successful? Support your answer. Leon Realty, Inc. v. Hough, 310 So.2d 767 (Fla. Dist. Ct. 1973). 2. Lewis, a licensed real estate sales associate, listed residential property owned by Flavin. Flavin informed Lewis that the property was in the South West School District. Actually the property was in the Columbus School District. Flavin, however, did not know this because he had no children and had frequently received mailings from the South West schools. In addition, children who lived next door attended schools in the South West District. Katz and her husband were looking for a home, but they did not want to buy property in the Columbus district because children were bused substantial distances to achieve racial balance. The Katz family was interested in Flavin's home and agreed to buy it after Lewis assured them that it was in the South West District. Would the erroneous statement made by Lewis be a basis for Katz to recover damages? Discuss.
Case studies Chapter 13
1. ble hired a contractor to repair several cracks in the walls of his home. The cracks were the result of settling, but the contractor never mentioned this fact to Able. Somehow Able got the impression that the cracks were caused by green lumber. When Able later tells Baker, a prospective purchaser, about the cracks, he explains the cause as green lumber. Baker purchases the property. When additional cracks appear and Baker discovers their true cause, he sues Able for fraud. Is Able liable? Discuss. 2.Kaye was interested in buying a large piece of land from Katzenberry, who lived nearby. Katzenberry did not want to sell the land to a buyer who would use it for commercial purposes; he asked Kaye what he planned to do with the property. Kaye told Katzenberry that he was going to build a house on part of it and probably would use the rest for a garden. This was true, but before the closing, Kaye changed his mind and made plans to build a hamburger stand next to his house. Katzenberry learned of this and refused to convey the property. Kaye sued for breach of contract; the defense claimed fraud. Would Kaye be successful? Discuss.
Case Study Chapter 11
River Birch Associates, a developer, entered into a plan to develop a 144-unit townhome project on 19.6 acres. River Birch agreed to convey fee simple title to the "common area" to the project's homeowners association. The specific identity of the common area was not designated in the contract. Can the homeowners association resort to extrinsic evidence to clarify the quantity and the specific identity of the common areas? Explain. What extrinsic evidence may be helpful? River Birch Associates v. City of Raleigh, 326 N.C. 100, 388 S.E.2d 538 (1990).
Case study Chapter 14
kile borrowed $15,000 from Chatfield, giving her a promissory note to cover the debt. The note was unsecured, but Chatfield knew that Kile owned substantial unmortgaged real property. A short time later, Hude won a judgment against Kile for $150,000. When Kile filed as bankrupt, both Chatfield and Hude claimed priority in the real estate. Which of the two has the superior claim? Explain.