Lisa is thinking of buying a new house. On Saturday, she inspected a large residential property in Melbourne which met all her criteria. The real estate agent told her that the price of the house was $2.5 million. Lisa replied that she really liked the house, but that she will need some time to organise finance. Then she adds, ‘I will give you $50 if you keep the offer open for two weeks’. The real estate agent agrees, Lisa hands him a $50 note, and he puts the note in his wallet.After three days, the real estate agent contacts Lisa and tells her that he revokes the offer, as the house has been sold to someone else. He also adds that he will give her the $50 back. Lisa seeks your advice.Which of the following is CORRECT?Question 14Answera.Lisa cannot sue for breach: a promise to keep an offer open for a specific period of time does not apply to the sale or lease of real estate property, and the seller is therefore able to return the $50.b.Lisa can sue for breach of contract: the promise to keep the offer open for a specific period of time is an option contract. Therefore, the seller was unable to revoke the offer before the two weeks had expired.c.Lisa cannot sue for breach: the promise to keep the offer open is not binding because Lisa has not provided consideration. The seller is therefore able to revoke the offer, and return the $50.d.Lisa can recover the $50, but she cannot sue for breach of contract.

Heather is selling her house. She initially bought it for $575000$575000. The real estate agent estimates her house value has gone up 15%15% since she bought it. An offer is made on the house for 10%10% less than the real estate agent's estimate.  Determine the price of the offer. Remember to include the $ sign in your answer.

This question is based on the following fact pattern . . .10/1/03 Marge mails Lisa an offer to sell her a car for $25,00010/5/03 at 10 am, Marge sends Lisa a letter by certified mail and attempts to revoke her offer of 10/110/5/03 at 10:30 am, Lisa mails her acceptance of Marge's 10/1 offer10/5/03. at 11 am, Lisa receives Marge's 10/5 revocation10/5/03 at 11:30 am, Marge receives Lisa's acceptanceQuestion:Under the UCC, there is a contract since Lisa's acceptance is reasonable and therefore good upon dispatch.Group of answer choicesTrueFalse

Why is it likely that real estate agents keep their own houses on the market longer than they do for other sellers?Group of answer choicesThe dollar value of the commission received when selling other people’s house received is always constantIncentives are stronger when selling the agent’s own houseOther sellers do not appreciate the effort real estate agents put inThe chances of finding a buyer for the agent’s own house is much higher than it is for another seller’s house

How much would Susan be willing to pay for an investment property today if she believes it will generate $30,000 per year in rent indefinitely (after deducting agent fees and other costs), growing at 1% above inflation if he can achieve a real rate of return on similar investments of 6% per annum using the ‘Present value of future rent’ valuation approach (to the nearest dollar)?Please do not include dollar signs or commas in your answer.

Sophie and Marcus have recently split up having lived together for 20 years. They nevermarried. They have a daughter, Amy, who is 17 years old.Marcus purchased the family home 20 years ago in his sole name. When, at the time ofthe purchase, Sophie suggested that the house should be conveyed into their joint names,Marcus said, “Why do you want a stupid piece of paper saying that? Don’t you trustme?” Marcus provided the deposit. The balance of the purchase price was funded by amortgage loan. Marcus has paid all the mortgage installments. Sophie used the saleproceeds of her studio flat to furnish the new house.Shortly before Amy was born, Sophie gave up her job and did not work until 2004 whenshe got part-time work. Her wages were a welcome addition to the family financesbecause Marcus’s business was going through a bad period. Marcus continued to meetthe mortgage payments but since 2004, Sophie has paid all other household bills.Advise Sophie on whether she can claim a half-share in the family home and, if not,whether any other remedies may be available to her.- END -