SOLUTION MANUAL FOR Real Estate Finance and Investments 17th Edition by Jeffrey Fisher,William Brueggeman ISBN: ‎978-1264892884 COMPLETE GUIDE WITH RATIONALES 100% VERIFIED A+ GRADE ASSURED!!!!!!NEW LATEST UPDATE!!!!!

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, Solutions to Questions—Chapter 1 GO GO GO


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


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 1-2 GO


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
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estate. The economic benefits expected by lenders, investors, and other parties in a real e
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state transaction are affected by these legal factors.
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Question 1-3 GO


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 le
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ased fee estate will depend on the amount of lease payments expected during the term
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of the lease plus the value of the property when the lease terminates, and the original o
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wner receives the reversionary interest.
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Question 1-4 GO


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 encumb
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rances affecting each property. These records are critical to investors who want to identify
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the owner of specific tracts or land, existing buildings, etc. These records are also impor
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tant because they contain evidence of encumbrances such as mortgage liens, tax liens (to
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be covered in later chapters), etc. Example: a prospective investor sees a vacant tract of
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land that he is interested in purchasing. Because there is no signage or any improvement
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s on the land, how can the land owner be identified and contacted? By going to the cou
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nty records office (deeds and conveyancers department) the investor can use the address
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to locate a property (usually in plat books), then the current owner. These records are us
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ed to link a precise property to its owner. At some point, if this investor continues to be
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interested in purchasing the land, he will likely retain an attorney or abstractor to do a tit
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le search 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 likelih
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ood of other parties who may ownership rights and /or interests in the tract of land.
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Question 1-5 GO


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 descr
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ibes the extent to which the seller warrants that he is the owner of the property and ha
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s the right to convey ownership. A deed is used to convey the title from one person (t
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he grantor) to another (the regrantee) by means of a written instrument. The term ―title
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‖ is an abstract term frequently used to link an individual or entity who owns property t
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o the 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 th
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e collective records that exist pertaining to a property.
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Question 1-6 GO


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 t
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racts of real estate and determine if a seller has the right to convey ownership of such r
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eal property.
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These records are the most important sources of events affecting real estate ownership ov
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er time and are usually reviewed when trying to identify the ―quality‖ of title that invest
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ors 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 an
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d title to the property. Most of the instruments that affect title to real estate are recorde
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d, in accordance with the recording acts of the various states, at what is typically called
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the county recorder’s office.
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Question 1-7 GO


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 p
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erson who becomes the owner at that time is said to be a ―remainder‖ estate. Future es
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tates include a reversion and remainder. A reversion results in the state reverting back to t
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he 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 GO


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 - GO GO GO


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


makes the same warranties as a general warranty deed except that it limits their applicat
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, ion to defects and encumbrances which occurred only while the grantor held title to the pr
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operty.
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offers the grantee the least protection in that it imply conveys to the grantee whatever r
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ights,, interests,, and title that the grantor may have in the property. No warranties are ma
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de about the nature of these rights and interests or of the quality of the grantor’s title to
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the property.
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