Understanding Real Estate and Property Rights: A Comprehensive Guide, Exams of Nursing

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REAL ESTATE FINANCE AND INVESTMENTS 17TH EDITION BYBRUEGGEMAN CH01 QUESTION AND ANSWERS LATEST UPDATES 2024 [Document subtitle] [DATE] [COMPANY NAME] [Company address] Version 1 1 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Real estate refers to the physical land and improvements constructed on the land. 1) ⊚ true ⊚ false Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 2) Real property refers to the ownership rights associated with real estate. ⊚ true ⊚ false Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 2) 3) A quitclaim deed says that the grantor "quits" whatever claim he has in the property in favor of the grantee. 3) ⊚ true ⊚ false Version 1 4 9) A reciprocal easement agreement allows two or more parties to access each other's property. 9) ⊚ true ⊚ false Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 10) A lien waiver provides certification that contractor's on newly constructed properties have been compensated. ⊚ true ⊚ false Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Level 1 Remember Topic : Assurance of Title Gradable : automatic 11) A lessee is a person who holds the title to a piece of property. ⊚ true ⊚ false Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 10) 11) Version 1 5 12) The grantee typically conveys title to the grantor by means of a deed. ⊚ true ⊚ false Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 12) MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 13) If a lender is to repossess or bring about the sale of a property if the borrower defaults on the mortgage loan, the lender is said to have a in the real estate. 13) A) freehold interest B) lease interest C) secured interest D) quitclaim Question Details Difficulty : 2 Medium Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 2 Understand Gradable : automatic 14) A(n) estate represents the most complete form of ownership of real estate; the owner is free to divide it up into lesser estates and sell, lease, or borrow against them as he or she wishes. Version 1 6 14) A) fee simple B) freehold C) leasehold D) life Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 15) Mr. Smith has allowed Mrs. Jones to run a sewer line through Mr. Smith's backyard so that Mrs. Jones has access to the city sewer system. This is an example of a(n): 15) A) easement. B) encumbrance. C) estate for years. D) title assurance. Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 16) Which type of deed offers the grantee the MOST protection? 16) Version 1 9 A) Mortgage B) Note C) Deed D) Debenture Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Level 1 Remember Topic : Assurance of Title Gradable : automatic 21) A historical summary of the publicly-recorded documents that affect the ownership of a property is known as a(n): 21) A) estate. B) deed. C) abstract of title. D) lien. Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Level 1 Remember Topic : Assurance of Title Gradable : automatic 22) Which of the following is FALSE regarding a tax sale? 22) Version 1 10 A) An accurate and complete description of the property is required to be posted for possible purchasers before the sale. B) The property owner may not have had a court appearance through due process, thus creating a cloud on the title. C) The line of authority for the sale may not be clear. D) The purchaser is usually expected to pay all delinquent taxes at the time of sale. Question Details Difficulty : 3 Hard Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Level 3 Apply Topic : Assurance of Title Gradable : automatic 23) A reversion and a remainder are similar in that: 23) A) both can be sold or mortgaged. B) both cause the property to go back to the grantor after the sale. C) neither is an actual interest in the property. D) neither is considered a future estate. Question Details Difficulty : 2 Medium Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 2 Understand Gradable : automatic 24) Which of the following is FALSE concerning mechanic's Liens? 24) Version 1 11 A) Gives the right to attach a lien on real estate B) Can get money through forcing judicial sale C) Lasts even after the bill for labor and materials has been paid D) Might not be disclosed by the public records Question Details Difficulty : 2 Medium Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Level 2 Understand Topic : Assurance of Title Gradable : automatic 25) All other items not considered realty, including intangibles and movable things, are considered as: 25) A) realty. B) contractual. C) personality. D) an estate. Question Details Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Property Rights and Estates Bloom's : Level 1 Remember Gradable : automatic 26) A term used to link an individual or entity who owns property to the property itself is: 26) Version 1 14 enhancing customer traffic flow and shopping opportunities. 10) TRUE In practice, owners of properties that are newly constructed or renovated should require contractors, workers, and material suppliers to sign a lien waiver. This is an acknowledgment that they have been compensated and that they agree to waive all lien rights. 11) FALSE A lessee is a person who leases land or property. 12) FALSE Usually title is conveyed from one person (the grantor) to another (the grantee) by means of a written instrument called a deed. 13) C The mortgage document provides the lender with evidence of a secured interest. This right has value to the lender and reduces the quantity of rights possessed by the owner. 14) A A fee simple estate represents the most complete form of ownership of real estate, whereas a leasehold estate usually describes rights and interests obtained by tenants when leasing or renting a property. The latter is also a possessory interest and involves the general right to occupy and use the property during the period of possession. 15) A An easement is a nonpossessory interest in land. It is the right to use land that is owned or leased by someone else for some special purpose. 16) C A general warranty deed is the most commonly used deed in real estate transactions and the most desirable type of deed from the buyer’s perspective. It offers the most comprehensive warranties about the Version 1 15 quality of the title. 17) B Usually title is conveyed from one person (the grantor) to another (the grantee) by means of a written instrument called a deed. 18) A A freehold estate lasts for an indefinite period of time; that is, there is no definitely ascertainable date on which the estate ends. A leasehold estate, on the other hand, expires on a definite date. 19) D A quitclaim deed offers the grantee the least protection. Such a deed simply conveys to the grantee whatever rights, interests, and title that the grantor may have in the property. No warranties are made about the nature of these rights and interests or of the quality of the grantor’s title to the property. 20) C Usually title is conveyed from one person (the grantor) to another (the grantee) by means of a written instrument called a deed. 21) C An abstract of title is a historical summary of the publicly recorded documents that affect a title. 22) A In a tax sale, an accurate and complete description of the property is not required to be posted prior to the sale. 23) A A reversionary interest can be sold or mortgaged because it is an actual interest in the property. A remainder exists when an owner wishes for another party to occupy and use a property for a specified number of years or for his life, then upon expiration of that time or upon his death, Version 1 16 the estate is conveyed to a third party. Both types may be mortgaged or sold. 24) C In general, mechanics’ liens give unpaid contractors, workers, and material suppliers the right to attach a lien on the real estate to which they added their labor or materials. These liens may not be disclosed in public records. To obtain the payment owed them, they may foreclose such liens by forcing a judicial sale of the encumbered property. They are then paid from the proceeds of the sale. The lien ends when the bills for the labor and/or materials have been paid. 25) C All other items not considered realty have been designated as personalty, which includes all intangibles and movable things (e.g., automobiles, shares of stock, bank accounts, and patents). 26) B Title is an abstract term frequently used to link an individual or entity who owns property to the property itself. When a person has “title,” he is said to have all of the elements, including the documents, records, and acts that prove ownership.