SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
SOLUTION MANUAL for Real Estate Finance And
Investments 17th International Edition| Jeffrey Fisher &
William B. Brueggeman
Page | 1
, SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
Solutions to Questions—Chapter 1
An Introduction to Real estate Investment: Legal
Concepts
Question 1-1
What is the difference between real property and personal property?
Real property refers to the ownership rights associated with
realty. Realty refers to land and all things permanently attached.
Personal property refers to ownership rights associated with
personalty. Personalty are all things, tangible, intangible that are
movable. This includes all things that are not realty.
Question 1-2
What is meant by an estate?
Estate is used to denote a possessory or potentially possessory
interest in real estate. However, not all interests in real property
are estates. Ownership can be quite different from possession
and a variety of legal factors affect the ownership rights
associated with real estate. The economic benefits expected by
lenders, investors, and other parties in a real estate transaction
are affected by these legal factors.
Question 1-3
How can a leased fee estate have a value that could be transferred
to another party?
Page | 2
, SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
The original fee owner can give up some property rights to a
lessee. The value of the leased fee estate will depend on the
amount of lease payments expected during the term of the lease
plus the value of the property when the lease terminates, and the
original owner receives the reversionary interest.
Question 1-4
What are title records? What is an abstract of title?
Title records (sometimes referred to as deeds and conveyances
records and/or real property records) are created and maintained
usually at the county level. These records identify all properties in
a county, including location, present ownership and any liens or
encumbrances affecting each property. These records are critical
to investors who want to identify the owner of specific tracts or
land, existing buildings, etc. These records are also important
because they contain evidence of encumbrances such as
mortgage liens, tax liens (to be covered in later chapters), etc.
Example: a prospective investor sees a vacant tract of land that
he is interested in purchasing. Because there is no signage or any
improvements on the land, how can the land owner be identified
and contacted? By going to the county records office (deeds and
conveyancers department) the investor can use the address to
locate a property (usually in plat books), then the current owner.
These records are used to link a precise property to its owner. At
some
Page | 3
, SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
point, if this investor continues to be interested in purchasing the
land, he will likely retain an attorney or abstractor to do a title
search and abstract of title. The latter is done to not only identify
the current owner but to trace all previous owners with
commentary on the likelihood of other parties who may
ownership rights and /or interests in the tract of land.
Question 1-5
What is a deed? How is it different from the title?
The deed is a document usually created by the owner of a property
containing the property legal
I.D. and location in addition to any improvements that exist on
the property. It also describes the extent to which the seller
warrants that he is the owner of the property and has the right to
convey ownership. A deed is used to convey the title from one
person (the grantor) to another (the regrantee) by means of a
written instrument. The term ―title is an abstract term frequently
used to link an individual or entity who owns property to the
property itself. When a person has title, he is said to have all the
elements, including the documents, records, and acts, that prove
ownership. Title establishes the quantity of rights in real estate
being conveyed from seller to It differs from title because title
provides evidence of ownership based on the collective records
that exist pertaining to a property.
Question 1-6
Page | 4
Fisher & William B. Brueggeman
SOLUTION MANUAL for Real Estate Finance And
Investments 17th International Edition| Jeffrey Fisher &
William B. Brueggeman
Page | 1
, SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
Solutions to Questions—Chapter 1
An Introduction to Real estate Investment: Legal
Concepts
Question 1-1
What is the difference between real property and personal property?
Real property refers to the ownership rights associated with
realty. Realty refers to land and all things permanently attached.
Personal property refers to ownership rights associated with
personalty. Personalty are all things, tangible, intangible that are
movable. This includes all things that are not realty.
Question 1-2
What is meant by an estate?
Estate is used to denote a possessory or potentially possessory
interest in real estate. However, not all interests in real property
are estates. Ownership can be quite different from possession
and a variety of legal factors affect the ownership rights
associated with real estate. The economic benefits expected by
lenders, investors, and other parties in a real estate transaction
are affected by these legal factors.
Question 1-3
How can a leased fee estate have a value that could be transferred
to another party?
Page | 2
, SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
The original fee owner can give up some property rights to a
lessee. The value of the leased fee estate will depend on the
amount of lease payments expected during the term of the lease
plus the value of the property when the lease terminates, and the
original owner receives the reversionary interest.
Question 1-4
What are title records? What is an abstract of title?
Title records (sometimes referred to as deeds and conveyances
records and/or real property records) are created and maintained
usually at the county level. These records identify all properties in
a county, including location, present ownership and any liens or
encumbrances affecting each property. These records are critical
to investors who want to identify the owner of specific tracts or
land, existing buildings, etc. These records are also important
because they contain evidence of encumbrances such as
mortgage liens, tax liens (to be covered in later chapters), etc.
Example: a prospective investor sees a vacant tract of land that
he is interested in purchasing. Because there is no signage or any
improvements on the land, how can the land owner be identified
and contacted? By going to the county records office (deeds and
conveyancers department) the investor can use the address to
locate a property (usually in plat books), then the current owner.
These records are used to link a precise property to its owner. At
some
Page | 3
, SOLUTION MANUAL for Real Estate Finance And Investments 17th International Edition| Jeffrey
Fisher & William B. Brueggeman
point, if this investor continues to be interested in purchasing the
land, he will likely retain an attorney or abstractor to do a title
search and abstract of title. The latter is done to not only identify
the current owner but to trace all previous owners with
commentary on the likelihood of other parties who may
ownership rights and /or interests in the tract of land.
Question 1-5
What is a deed? How is it different from the title?
The deed is a document usually created by the owner of a property
containing the property legal
I.D. and location in addition to any improvements that exist on
the property. It also describes the extent to which the seller
warrants that he is the owner of the property and has the right to
convey ownership. A deed is used to convey the title from one
person (the grantor) to another (the regrantee) by means of a
written instrument. The term ―title is an abstract term frequently
used to link an individual or entity who owns property to the
property itself. When a person has title, he is said to have all the
elements, including the documents, records, and acts, that prove
ownership. Title establishes the quantity of rights in real estate
being conveyed from seller to It differs from title because title
provides evidence of ownership based on the collective records
that exist pertaining to a property.
Question 1-6
Page | 4
