Some men and firms make a special business of transferring property, buying and selling it for others, making leases, and collecting rents. They are called real estate agents, and for their services get a commission, which is a certain percentage of the purchase or the selling price and a certain percentage of the amount of rent collected. This percentage varies according to whether the amount of money involved is large or small, the percentage being larger when small sums of money are involved than when large sums are involved.
Exercise 295
Oral
1. What is a lease?
2. Explain why owners of valuable property lease it.
3. What is a deed? Explain the two kinds.
4. What is meant by a clear title?
5. What is meant by fee simple?
6. Why is it important to be careful about the title?
7. What is a mortgage?
8. Explain why property is often mortgaged. Does the mortgage benefit the owner? Explain.