Question 5

A contract of sale prepared by a licensee MUST include an attorney review clause for a single family residential vacant lot.

A contract of sale must include an attorney review clause specifically for a single family residential vacant lot to ensure that the buyer has the opportunity to seek legal counsel regarding the terms of the sale and to protect their rights.

A) Six-family dwelling unit, a portion of which is used for non-residential purposes

This option is incorrect because a six-family dwelling unit, even if part of it is used for non-residential purposes, does not fall under the specific requirement for an attorney review clause when it comes to single family residential vacant lots. The focus here is on the residential nature, which this option does not fully represent.

B) Commercial building that does not exceed 10,000 square feet

This option is also incorrect. Commercial properties, including those that do not exceed 10,000 square feet, do not require an attorney review clause in the same manner as single family residential vacant lots. The legal protections and review processes differ significantly between commercial and residential transactions.

C) Subdivision of fifteen or more lots

This choice is incorrect as well. While subdivisions of this size may involve complex legal considerations, they do not specifically necessitate an attorney review clause for a single family residential vacant lot. The requirement for attorney review is more directly linked to single family residential properties.

D) Single family residential vacant lot

This option is correct because the sale of a single family residential vacant lot must include an attorney review clause. This provision is designed to safeguard the interests of the buyer by allowing them to consult with an attorney about the contract before finalizing the transaction.

Conclusion

The necessity for an attorney review clause in the sale of a single family residential vacant lot is crucial for protecting buyers' rights and ensuring they fully understand their obligations under the contract. Other options fail to meet this specific requirement, as they pertain to different types of properties or scenarios where such a clause is not mandated. Therefore, D is the only option that aligns with the legal requirements outlined for these transactions.