Reference no: EM13969652

Part 1

Question 1. Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is:

real property

home mortgages

equity REITs

mortgage backed securities

Question 2. Consider the following excerpt from a sample deed: "The Seller, for itself and its heirs, hereby covenants with the Buyer, its heirs and assigns forever, that the Seller is lawfully seized in fee simple of the above described property." The underlined portion of the preceding statement represents which of the following basic requirements of a deed?

Habendum clause

Recital of consideration

Words of conveyance

Exceptions and reservations clause

Question 3. Direct co-ownership implies that each co-owner holds a titled interest in the property, but without exclusive possession with respect to the other co-owners. Which of the following types of direct co-ownership is considered the closest to the fee simple absolute estate?

Tenancy in common

Tenancy by the entirety

Condominium

Tenancy at Will

Question 4. Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset?

Land

Building

Mortgage

Fence

Question 5. The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the:

User Market

Capital Market

Government Sector

Property Market

Question 6. While the vast majority of conveyances of real property are private grants through a deed, there are multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.)

Easement by prior use

Easement of necessity

Easement by estoppel

Dedication

Question 7. A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien?

Property tax and assessment lien

Mortgage lien

Lien arising from a court judgment unrelated to ownership of the property

Mechanics' lien

Question 8. In order for a deed to be a valid conveyance of property, there must be an observable, verifiable transfer of the deed to the grantee. Typically this is accomplished when the grantor hands the deed to the grantee at closing. Which of the following basic requirements of a deed does this represent?

Acknowledgment

Delivery

Words of conveyance

Recital of consideration

Question 9. Which of the following types of direct co-ownership combines single person ownership with tenancy in common?

Cooperative

Tenancy by the entirety

Condominium

Partnership

Question 10. Which of the following forms of co-ownership, historically used for apartment buildings, is not considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation?

Cooperative

Tenancy by the entirety

Condominium

Partnership

Part 2

Discussions

To participate in the following discussions, go to this week's Discussion link in the left navigation.

1. Real Estate Production

Real estate construction is a volatile process determined by the interaction of the user and capital markets. What signals do real estate producers use to manage this process? What other factors affect the volatility of real estate production? Respond substantively to at least two of your classmates' posts.

2. Real Estate Agents

View, The Man Selling Billions In Real Estate. Discuss three of the most important qualities a real estate agent must possess to succeed in real estate according to Cortazzo. Can agents succeed without these qualities? Support your response with information from Cortazzo's interview. Respond to at least two of your classmates' posts.