Real Estate Finance & Investments – Brueggeman & Fisher (2024 Evergreen) – Comprehensive Test Bank with Questions & Answers

TEST BANK

REAL ESTATE FINANCE & INVESTMENTS
2024 EVERGREEN RELEASE

CHAPTER NO. 01: REAL ESTATE INVESTMENT BASIC LEGAL CONCEPTS

1) Real estate refers to the physical land and improvements constructed on the land.
⊚ true
⊚ false
ANS: true

2) Real property refers to the ownership rights associated with real estate.
⊚ true
⊚ false
ANS: true

3) A quitclaim deed says that the grantor "quits" whatever claim he has in the property in favor
of the grantee.
⊚ true
⊚ false
ANS: true

4) The form of government in the U.S. protects the rights of individuals to own real estate and
to enjoy unrestricted real property rights.
⊚ true
⊚ false
ANS: false

5) The term real estate refers to the ownership rights associated with the physical land and
improvements.
⊚ true
⊚ false
ANS: false

,6) A fee simple estate is a type of freehold estate.
⊚ true
⊚ false
ANS: true

7) As compared to other types of deeds, a general warranty deed provides the most
comprehensive warranties about the quality of the title to the property.
⊚ true
⊚ false
ANS: true

8) After a house is purchased, contractors cannot ask the new owner of the house to pay any
bills that were outstanding before the house was sold.
⊚ true
⊚ false
ANS: false

9) A reciprocal easement agreement allows two or more parties to access each other's property.
⊚ true
⊚ false
ANS: true

10) A lien waiver provides certification that contractors' liens on newly constructed properties
have been compensated.
⊚ true
⊚ false
ANS: true

11) A lessee is a person who holds the title to a piece of property.
⊚ true
⊚ false
ANS: false

12) The grantee typically conveys title to the grantor by means of a deed.
⊚ true
⊚ false
ANS: false

,13) If a lender is to repossess or bring about the sale of a property because of defaults on the
mortgage loan by the borrower, the lender is said to have a __________ in the real estate.
A) freehold interest
B) lease interest
C) secured interest
D) quitclaim
ANS: C

14) A __________ 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.
A) fee simple
B) freehold
C) leasehold
D) life
ANS: A

15) Mr. Ramirez has allowed Mrs. Wilson to run a sewer line through Mr. Ramirez's backyard so
that Mrs. Wilson has access to the city sewer system. This is an example of a(n):
A) easement.
B) encumbrance.
C) estate for years.
D) title assurance.
ANS: A

16) Which type of deed offers the grantee the MOST protection?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Officer's deed
ANS: C

17) What term BEST describes a person that owns a property and is conveying title to the
property to another person?
A) Mortgagor
B) Grantor
C) Mortgagee
D) Grantee
ANS: B

, 18) What type of estate lasts for an indefinite period of time?
A) Freehold estate
B) Estate from year-to-year
C) Leasehold estate
D) Estate for years
ANS: A

19) Which of the following is NOT a good method of title assurance?
A) Seller provides a warranty in the deed.
B) An attorney searches recorded documents.
C) Title insurance is purchased.
D) Seller provides a quitclaim deed.
ANS: D

20) What legal document conveys title from one person to another?
A) Mortgage
B) Note
C) Deed
D) Debenture
ANS: C

21) A historical summary of the publicly recorded documents that affect the ownership of a
property is known as a(n):
A) estate.
B) deed.
C) abstract of title.
D) lien.
ANS: C

22) A reversion and a remainder are similar in that:
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.
ANS: A