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127. A church owns some excess land. It sells the land to a developer who...

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Accounting

127.

A church owns some excess land. It sells the land to a developer who plans to build a house on that land. The church negotiates a clause in the deed that states if the property is ever used to sell alcoholic beverages, title reverts back to the church. The developer builds the house and sells it to Mr. Sanders. Which of the following statements is correct regarding this situation?

Select one:

a. Mr. Sanders would not be subject to the restriction on selling alcohol unless the developer put a similar restriction in the deed to Mr. Sanders

b. Mr. Sanders holds a fee simple defeasible estate in the property

c. The church has no legal right to create any restriction when selling the property

d. There are no circumstances in which the deed restriction can be removed

133.

The Buyers purchased a home from the Sellers. The settlement date was September 22. The Sellers had paid the annual property taxes on July 1. How will the proration of the property taxes appear on the closing statement?

Select one:

a. As a credit to the seller and a debit to the buyer

b. As a debit to the seller and a credit to the buyer

c. Only as a credit to the seller

d. Only as a debit to the buyer

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