TEST BANK FOR Real Estate Finance and Investments 17th Edition 2024 Release by Jeffrey Fisher,William Brueggeman ISBN:978-1264892884 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!

Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt


18-1

,SOLUTION MANUAL FOR dt dt




Real Estate Finance And Investments 17th International Edition Jeffrey Fisher Willia
dt dt dt dt dt dt dt dt dt dt




m B. Brueggeman
dt dt




Chapter 1-23 dt




Solutions to Questions—Chapter 1 dt dt dt



An Introduction to Real estate Investment: Legal Concepts
dt dt dt dt dt dt dt




Question 1-1 dt



What is the difference between real property and personal property?
dt dt dt dt dt dt dt dt dt



Real property refers to the ownership rights associated with realty. Realty refers to land and all thin
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



gs permanently attached. Personal property refers to ownership rights associated with personalty.
dt dt dt dt dt dt dt dt dt dt dt dt



Personalty are all things, tangible, intangible that are movable. This includes all things that are not
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt d



realty.
t




Question 1-2 dt



What is meant by an estate? dt dt dt dt dt



Estate is used to denote a possessory or potentially possessory interest in real estate. However, not
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



all interests in real property are estates. Ownership can be quite different from possession and a vari
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



ety of legal factors affect the ownership rights associated with real estate. The economic benefits e
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



xpected by lenders, investors, and other parties in a real estate transaction are affected by these lega
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



l factors. dt




Question 1-3 dt



How can a leased fee estate have a value that could be transferred to another party?
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



The original fee owner can give up some property rights to a lessee. The value of the leased fee esta
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



te will depend on the amount of lease payments expected during the term of the lease plus the valu
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



e of the property when the lease terminates, and the original owner receives the reversionary inter
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



est.

Question 1-4 dt



What are title records? What is an abstract of title?
dt dt dt dt dt dt dt dt dt



Title records (sometimes referred to as deeds and conveyances records and/or real property record
dt dt dt dt dt dt dt dt dt dt dt dt dt



s) are created and maintained usually at the county level. These records identify all properties in a
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



county, including location, present ownership and any liens or encumbrances affecting each prope
dt dt dt dt dt dt dt dt dt dt dt dt



rty. These records are critical to investors who want to identify the owner of specific tracts or land,
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



existing buildings, etc. These records are also important because they contain evidence of encumb
dt dt dt dt dt dt dt dt dt dt dt dt dt



rances such as mortgage liens, tax liens (to be covered in later chapters), etc. Example: a prospecti
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



ve investor sees a vacant tract of land that he is interested in purchasing. Because there is no signa
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



ge or any improvements on the land, how can the land owner be identified and contacted? By goin
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



g to the county records office (deeds and conveyancers department) the investor can use the addre
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



ss to locate a property (usually in plat books), then the current owner. These records are used to lin
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



k a precise property to its owner. At some point, if this investor continues to be interested in purcha
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



sing the land, he will likely retain an attorney or abstractor to do a title search and abstract of title.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



The latter is done to not only dt dt dt dt dt dt




Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt


18-2

, identify the current owner but to trace all previous owners with commentary on the likelihood of ot
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



her parties who may ownership rights and /or interests in the tract of land.
dt dt dt dt dt dt dt dt dt dt dt dt dt




Question 1-5 dt



What is a deed? How is it different from the title?
dt dt dt dt dt dt dt dt dt dt



The deed is a document usually created by the owner of a property containing the property legal
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



I.D. and location in addition to any improvements that exist on the property. It also describes the ex
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



tent to which the seller warrants that he is the owner of the property and has the right to convey ow
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



nership. A deed is used to convey the title from one person (the grantor) to another (the regrantee)
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



by means of a written instrument. The term ―title‖ is an abstract term frequently used to link an in
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



dividual or entity who owns property to the property itself. When a person has
dt dt dt dt dt dt dt dt dt dt dt dt dt



―title,‖ he is said to have all the elements, including the documents, records, and acts, that prove ow
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



nership. Title establishes the quantity of rights in real estate being conveyed from seller to It differ
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



s from title because title provides evidence of ownership based on the collective records that exist
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



pertaining to a property. dt dt dt




Question 1-6 dt



What is meant by a title record? Why are these records so important?
dt dt dt dt dt dt dt dt dt dt dt dt



The title record refers to records on file, usually at the county level, that help to specify tracts of rea
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



l estate and determine if a seller has the right to convey ownership of such real property.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



These records are the most important sources of events affecting real estate ownership over time an
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



d are usually reviewed when trying to identify the ―quality‖ of title that investors will receive if the
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



y purchase. After a review of these records (usually by an attorney), if in his opinion, they are com
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



plete, he will indicate that the seller has ownership and title to the property. Most of the instrument
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



s that affect title to real estate are recorded, in accordance with the recording acts of the various sta
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



tes, at what is typically called the county recorder’s office.
dt dt dt dt dt dt dt dt dt




Question 1-7 dt



What is a future estate? Give an example?
dt dt dt dt dt dt dt



We think of most real estate transactions as acquiring ownership at the present time. However, ow
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



nership can also occur at a later time, say after the current owner dies. The person who becomes th
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



e owner at that time is said to be a ―remainder‖ estate. Future estates include a reversion and rema
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



inder. A reversion results in the state reverting back to the original possessor whereas the remainde
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



r results in a third-party obtaining possession at some point in the future.
dt dt dt dt dt dt dt dt dt dt dt dt




Question 1-8 dt



Name the three general methods of title assurance and briefly describe each. Which would you rec
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



ommend to a friend purchasing real estate? Why? dt dt dt dt dt dt dt



General Warranty Deed - dt dt dt



the grantor warrants that the title he/she conveys to the property is free and clear of all encumbranc
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



es, other than those that are specifically listed in the deed.
dt dt dt dt dt dt dt dt dt dt



Special Warranty Deed - dt dt dt



makes the same warranties as a general warranty deed except that it limits their application to defe
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



cts and encumbrances which occurred only while the grantor held title to the property.
dt dt dt dt dt dt dt dt dt dt dt dt dt



Quitclaim Deed - dt dt



offers the grantee the least protection in that it imply conveys to the grantee whatever rights,, inter
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt



ests,, and title that the grantor may have in the property. No warranties are made about the nature of
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt




Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt


18-3

, dt these rights and interests or of the quality of the grantor’s title to the property.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt




Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt dt


18-4