Question: A homeowner owned a single-story ranch- style home that was her primary residence. The homeowner received notice that her uncle had passed away and left her a two-story mansion in a neighboring city. The homeowner decided to move her primary residence to the mansion and rent the ranch-style home. She entered into a one- year written lease agreement with a tenant. The agreement set the monthly rent at $1,000. Shortly after the tenant took possession of the home, he built, at his own expense, a room addition onto the home. The room addition increased the appraised market value of the home from $200,000 to $250,000. At the expiration of the lease, the homeowner informed the tenant that she had decided to sell the home. She offered the tenant the first opportunity to buy the home, but the tenant replied that he could not afford to do so. The tenant did claim that he should be entitled to compensation for the room addition, since it had increased the value of the home, and the homeowner agreed. The tenant and the homeowner then executed the following agreement:"On the sale of the ranch-style home, the homeowner hereby promises to pay the tenant one- half of any sale proceeds in excess of $200,000, in compensation of the tenant's efforts in constructing the room addition onto the home. In addition, it is hereby agreed that the tenant may remain on the land until the sale is finalized, at a monthly rent of$500. ,'The homeowner initially set the asking price at $250,000, but received no offers to purchase the The response should be in all capital letters.
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