Part 1
Question 1. Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is:
real property
home mortgages
equity REITs
mortgage backed securities
Question 2. Consider the following excerpt from a sample deed: "The Seller, for itself and its heirs, hereby covenants with the Buyer, its heirs and assigns forever, that the Seller is lawfully seized in fee simple of the above described property." The underlined portion of the preceding statement represents which of the following basic requirements of a deed?
Habendum clause
Recital of consideration
Words of conveyance
Exceptions and reservations clause
Question 3. Direct co-ownership implies that each co-owner holds a titled interest in the property, but without exclusive possession with respect to the other co-owners. Which of the following types of direct co-ownership is considered the closest to the fee simple absolute estate?
Tenancy in common
Tenancy by the entirety
Condominium
Tenancy at Will
Question 4. Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset?
Land
Building
Mortgage
Fence
Question 5. The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the:
User Market
Capital Market
Government Sector
Property Market
Question 6. While the vast majority of conveyances of real property are private grants through a deed, there are multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.)
Easement by prior use
Easement of necessity
Easement by estoppel
Dedication
Question 7. A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien?
Property tax and assessment lien
Mortgage lien
Lien arising from a court judgment unrelated to ownership of the property
Mechanics' lien
Question 8. In order for a deed to be a valid conveyance of property, there must be an observable, verifiable transfer of the deed to the grantee. Typically this is accomplished when the grantor hands the deed to the grantee at closing. Which of the following basic requirements of a deed does this represent?
Acknowledgment
Delivery
Words of conveyance
Recital of consideration
Question 9. Which of the following types of direct co-ownership combines single person ownership with tenancy in common?
Cooperative
Tenancy by the entirety
Condominium
Partnership
Question 10. Which of the following forms of co-ownership, historically used for apartment buildings, is not considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation?
Cooperative
Tenancy by the entirety
Condominium
Partnership
Part 2
Discussions
To participate in the following discussions, go to this week's Discussion link in the left navigation.
1. Real Estate Production
Real estate construction is a volatile process determined by the interaction of the user and capital markets. What signals do real estate producers use to manage this process? What other factors affect the volatility of real estate production? Respond substantively to at least two of your classmates' posts.
2. Real Estate Agents
View, The Man Selling Billions In Real Estate. Discuss three of the most important qualities a real estate agent must possess to succeed in real estate according to Cortazzo. Can agents succeed without these qualities? Support your response with information from Cortazzo's interview. Respond to at least two of your classmates' posts.