Real Estate Finance and Investments 15th Edition By Brueggeman - Test Bank
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Course
Real Estate Finance Test Bank
Institution
Real Estate Finance Test Bank
CHAPTER 3
Mortgage Loan Foundations: The Time Value of Money
TRUE/FALSE
1. In order to solve a compounding problem, you must know all four of the variables in order to solve for the fifth variable. (T)
2. One way to calculate the present value of a single payment is with the following fo...
, CHAPTER 1
Real Estate Investment: Basic Legal Concepts
TRUE/FALSE
1. Real estate refers to the physical land and improvements constructed on the land. (T)
2. Real property refers to the ownership rights associated with real estate. (T)
3. A quitclaim deed says that the grantor “quits” whatever claim he has in the property in favor
of the grantee. (T)
4. It is illegal to give a quitclaim deed if the grantor has no claim in the property. (F)
5. The term real estate refers to the ownership rights associated with the physical land and
improvements. (F)
6. A fee simple estate is a type of freehold estate. (T)
7. As compared to other types of deeds, a general warranty deed provides the most
comprehensive warranties about the quality of the title to the property. (T)
8. After a house is purchased, contractors cannot ask the new owner of the house to pay any
bills that were outstanding before the house was sold. (F)
9. A reciprocal easement agreement allows two or more parties to access each other’s
property. (T)
MULTIPLE CHOICE
10. If a lender is to repossess or bring about the sale of a property if the borrower defaults on
the mortgage loan, the lender is said to have a ___ in the real estate. (C)
11. A(n) ___ estate represents the most complete form of ownership of real estate; the owner is
free to divide it up into lesser estates and sell, lease, or borrow against them as he or she
wishes. (A)
,12. Mr. Smith has allowed Mrs. Jones to run a sewer line through Mr. Smith’s backyard so that
Mrs. Jones has access to the city sewer system. This is an example of a(n): (A)
(A) Easement
(B) Encumberance
(C) Estate for years
(D) Title assurance
13. Which type of deed offers the grantee the MOST protection? (C)
(A) Quitclaim deed
(B) Special warranty deed
(C) General warranty deed
(D) Officer’s deed
14. What term BEST describes a person that owns a property and is conveying title to the
property to another person? (B)
15. What type of estate lasts for an indefinite period of time? (A)
(A) Freehold estate
(B) Estate from year to year
(C) Leasehold estate
(D) Estate for years
16. Which of the following is NOT a good method of title assurance? (D)
(A) Seller provides a warranty in the deed
(B) An attorney searches recorded documents
(C) Title insurance is purchased
(D) Seller provides a quitclaim deed
17. Which of the following documents conveys title to a property at the time the purchaser
completes the performance of the obligation called for in the document? (D)
18. What legal document conveys title from one person to another? (C)
(A) Mortgage
(B) Note
(C) Deed
(D) Title
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, 19. A historical summary of the publicly-recorded documents that affect the ownership of a
property is know as a(n): (C)
(A) Estate
(B) Deed
(C) Abstract of title
(D) Lien
20. Which of the following is FALSE regarding a tax sale? (A)
(A) An accurate and complete description of the property is required to be posted for
possible purchasers before the sale
(B) The property owner may not have had a court appearance through due process, thus
creating a cloud on the title
(C) The line of authority for the sale may not be clear
(D) The purchaser is usually expected to pay all delinquent taxes at the time of sale
21. A reversion and a remainder are similar in that: (A)
(A) Both can be sold or mortgaged
(B) Both cause the property to go back to the grantor after the sale
(C) Neither is an actual interest in the property
(D) Neither is considered a future estate
22. Which of the following is FALSE concerning Mechanic’s Liens? (C)
(A) Gives the right to attach a lien on real estate
(B) Can get money through forcing judicial sale
(C) Lasts even after the bill for labor and materials has been paid
(D) Might not be disclosed by the public records
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