Types of Real Estate - L3

Real estate can generally be divided into how many categories?

• Two

• Three

• Four

• Five

Which of the following is NOT a category of real estate mentioned in the text?

• Use-based real estate

• Common interest in ownership real estate

• Investment real estate

• Residential real estate

What type of properties are included in use-based real estate?

• Condos and co-ops

• Industrial property and commercial property

• REITs and joint ventures

• Residential homes and apartments

What do condos and co-ops have in common?

• They are both types of investment properties

• They are both use-based real estate

• They both have unique methods of ownership

• They are both managed by REITs

What does REIT stand for?

• Real Estate Investment Trust

• Real Estate Industrial Territory

• Residential Estate Investment Team

• Real Estate International Trade

What is a condominium?

• A. A trust that invests in real estate and is owned by investors who share the profits.

• B. A form of co-ownership where each owner has use of the property at a different prescribed period of time.

• C. Property where each owner has a separate interest in their own unit and undivided interest in the common areas.

• D. A subdivision that includes residential dwellings along with nonresidential real estate.

What are common elements in the context of common interest ownership properties?

• A. The profits shared by investors in a real estate investment trust.

• B. The individual units owned separately by each owner in a condominium.

• C. Portions of a shared ownership property not controlled by any one owner or tenant, such as lobbies and fitness centers.

• D. A subdivision that departs from normal zoning and subdivision regulations.

What is a planned unit development?

• A. A trust that invests in, owns, or acquires real property and is owned by investors.

• B. A form of co-ownership where each owner has use of the property at a different prescribed period of time.

• C. A subdivision that includes residential dwellings along with nonresidential real estate, departing from normal zoning and subdivision regulations.

• D. Property where each owner has a separate interest in their own unit and undivided interest in the common areas.

What is a timeshare?

• A. A trust that invests in, owns, or acquires real property and is owned by investors who share the trust’s profits.

• B. A form of co-ownership where each owner has use of the property at a different prescribed period of time, also known as interval ownership.

• C. Property where each owner has a separate interest in their own unit and undivided interest in the common areas.

• D. A subdivision that includes residential dwellings along with nonresidential real estate.

What is a real estate investment trust (REIT)?

• A. A form of co-ownership where each owner has use of the property at a different prescribed period of time.

• B. A subdivision that includes residential dwellings along with nonresidential real estate.

• C. Property where each owner has a separate interest in their own unit and undivided interest in the common areas.

• D. A trust that invests in, owns, or acquires real property and is owned by investors who share the trust’s profits according to shares.