Principles of Real Estate II Final Exam Study Guide: Questions &Answers: Latest Updated Solution

Which of the following has a long lease term and is often used in the development of commercial property? (Ans- Ground lease What is a fee simple subject to a condition subsequent estate? (Ans- An estate in which the property MUST be used for a specific purpose and if it's not, the real estate reverts back to the original owner Landlords MUST allow tenants with disabilities to make reasonable modifications to a property so they can enjoy it. But there are also unreasonable modifications a landlord does NOT have to allow. All of the following are unreasonable modifications EXCEPT (Ans- Modifications made at the tenant's expense A 20-acre property is about to be sold. Before it can be sold, however, the loan connected to the property has to be paid in full. What is the name of the provision in the mortgage that would require this full payment? (Ans- Alienation clauseWhich of the following about REITs is FALSE? (Ans- A real estate investment trust allows a single investor to directly own a property and experience the full return rights to that property An area is zoned for residential use only. If a person would like to operate a business in their home, what could they do? (Ans- Seek a conditional-use permit from the zoning board, if it is defined as allowable Instruments affecting real estate must be recorded with the county clerk where the land is located. What purpose does this process of recording acts serve? (Ans- The recording acts give legal priority to those interests that are recorded first What are tranches?