SOLUTION MANUAL FOR Real Estate Finance 17th Edition by Jeffrey Fisher William Brueggeman COMPLETE GUIDE WITH RATIONALES 100% VERIFIED A+ GRADE ASSURED!!!!!!NEW LATEST UPDATE!!!!!

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, Solutions to Questions—Chapter 1 DC DC DC


An Introduction to Real estate Investment: Legal Concepts
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Question 1-1DC


What is the difference between real property and personal property?
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Real property refers to the ownership rights associated with realty. Realty refers to land an
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d all things permanently attached. Personal property refers to ownership rights associated
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with personalty. Personalty are all things, tangible, intangible that are movable. This inclu
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des all things that are not realty.
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Question 1-2DC


What is meant by an estate?
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Estate is used to denote a possessory or potentially possessory interest in real estate. Ho
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wever, not all interests in real property are estates. Ownership can be quite different from
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possession and a variety of legal factors affect the ownership rights associated with real e
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state. The economic benefits expected by lenders, investors, and other parties in a real est
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ate transaction are affected by these legal factors.
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Question 1-3DC


How can a leased fee estate have a value that could be transferred to another party?
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The original fee owner can give up some property rights to a lessee. The value of the lea
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sed fee estate will depend on the amount of lease payments expected during the term of
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the lease plus the value of the property when the lease terminates, and the original own
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er receives the reversionary interest.
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Question 1-4DC


What are title records? What is an abstract of title?
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Title records (sometimes referred to as deeds and conveyances records and/or real propert
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y records) are created and maintained usually at the county level. These records identify
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all properties in a county, including location, present ownership and any liens or encumbr
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ances affecting each property. These records are critical to investors who want to identify t
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he owner of specific tracts or land, existing buildings, etc. These records are also importa
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nt because they contain evidence of encumbrances such as mortgage liens, tax liens (to b
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e covered in later chapters), etc. Example: a prospective investor sees a vacant tract of la
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nd that he is interested in purchasing. Because there is no signage or any improvements
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on the land, how can the land owner be identified and contacted? By going to the count
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y records office (deeds and conveyancers department) the investor can use the address to
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locate a property (usually in plat books), then the current owner. These records are used t
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o link a precise property to its owner. At some point, if this investor continues to be inter
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ested in purchasing the land, he will likely retain an attorney or abstractor to do a title se
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arch and abstract of title. The latter is done to not only
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, identify the current owner but to trace all previous owners with commentary on the likeliho
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od of other parties who may ownership rights and /or interests in the tract of land.
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Question 1-5 DC


What is a deed? How is it different from the title?
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The deed is a document usually created by the owner of a property containing the property legal
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I.D. and location in addition to any improvements that exist on the property. It also descri
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bes the extent to which the seller warrants that he is the owner of the property and has
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the right to convey ownership. A deed is used to convey the title from one person (the
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grantor) to another (the regrantee) by means of a written instrument. The term ―title‖ is
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an abstract term frequently used to link an individual or entity who owns property to the
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property itself. When a person has
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―title,‖ he is said to have all the elements, including the documents, records, and acts, that
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prove ownership. Title establishes the quantity of rights in real estate being conveyed fro
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m seller to It differs from title because title provides evidence of ownership based on the
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collective records that exist pertaining to a property.
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Question 1-6 DC


What is meant by a title record? Why are these records so important?
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The title record refers to records on file, usually at the county level, that help to specify tr
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acts of real estate and determine if a seller has the right to convey ownership of such re
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al property.
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These records are the most important sources of events affecting real estate ownership ove
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r time and are usually reviewed when trying to identify the ―quality‖ of title that investor
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s will receive if they purchase. After a review of these records (usually by an attorney),
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if in his opinion, they are complete, he will indicate that the seller has ownership and tit
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le to the property. Most of the instruments that affect title to real estate are recorded, in
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accordance with the recording acts of the various states, at what is typically called the c
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ounty recorder’s office.
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Question 1-7 DC


What is a future estate? Give an example?
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We think of most real estate transactions as acquiring ownership at the present time. Ho
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wever, ownership can also occur at a later time, say after the current owner dies. The pe
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rson who becomes the owner at that time is said to be a ―remainder‖ estate. Future esta
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tes include a reversion and remainder. A reversion results in the state reverting back to the
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original possessor whereas the remainder results in a third-
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party obtaining possession at some point in the future.
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Question 1-8 DC


Name the three general methods of title assurance and briefly describe each. Which would
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you recommend to a friend purchasing real estate? Why?
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General Warranty Deed - DC DC DC


the grantor warrants that the title he/she conveys to the property is free and clear of all e
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ncumbrances, other than those that are specifically listed in the deed.
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Special Warranty Deed - DC DC DC


makes the same warranties as a general warranty deed except that it limits their applicati
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, on to defects and encumbrances which occurred only while the grantor held title to the pro
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perty.
Quitclaim Deed - DC DC


offers the grantee the least protection in that it imply conveys to the grantee whatever ri
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ghts,, interests,, and title that the grantor may have in the property. No warranties are mad
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e about the nature of these rights and interests or of the quality of the grantor’s title to t
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he property.
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