ch2 day2

While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT:

• leasehold estates are limited in time.

• the right of disposition is diminished with a leasehold estate.

• leasehold estates are not titled interests.

• leasehold estates are possessory interests.

Nonpossessory interests include all of the following EXCEPT:

• leasehold interests.

• easements.

• restrictive covenants.

• liens.

An easement involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and gives the dominant parcel some intrusive use of the servient parcel. Which of the following easements is described?

• affirmative easement appurtenant

• negative easement appurtenant

• easement in gross

• license

Which of the following is an example of a negative easement appurtenant?

• a driveway easement across one parcel to another

• rights-of-way for roads

• a common drive easement where owners of adjoining lots must permit each other to use a driveway lying on their shaped property line

• a scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view

An important distinction is the difference between an easement and a license. All of the following characteristics pertain to a license EXCEPT:

• a license is revocable by the grantor.

• a license can be granted orally.

• a license is enduring.

• a license grants permission to use another’s land for a specific and limited purpose.

Participants in the capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. A limited liability corporation’s ownership of real property occurs in the:

• Private equity market

• Public equity market

• Private debt market

• Public debt market

Participants in the capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. Bank lending as a source of financing for the acquisition of real property occurs in the:

• Private equity market

• Public equity market

• Private debt market

• Public debt market

Primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values?

• local government

• state government

• national government

• foreign government

Competition for the currently available supply of locations and space coupled with the existing supply of leasable space, determines:

• the current level of rental rates for each submarket and property.

• the riskiness of the expected cash flows of an income-producing property.

• the timing of the expected cash flows of an income-producing property.

• the cost of financing the purchase of a property.

Each commercial property has unique features, whether it is its age, the building design of its structures, occupancy or its location. As such, real estate markets consist of assets that are considered:

• homogeneous.

• heterogeneous.

• substitutes.

• complements.