Chapter 1 Questions

1. (T/F). REIT stands for real estate investment trust.

2. (T/F). A developer is someone that has the expertise to gather necessary factors of production to create real estate for human needs.

3. (T/F). A proprietary transaction refers to the process of bidding for the purchase of an asset of an asset.

4. (T/F). A mortgage is a real estate asset created by real estate lenders.

5. (T/F). Real estate is the legally recognized rights associated with the property.

6. Which of the following terms is a reason why real estate markets are inefficient?
a. Origination
b. Derivative
c. Data Poverty
d. Securitization

7. A real estate professional specialzing in providing an informed and defensible opinion of real estate asset value is called:
a. Appraiser
b. Market Researcher
c. Consultant
d. Asset Manager

8. If you wanted to assess the risk associated with real estate loans, which of the following professionals would you want to contact?
a. Broker
b. Underwriter
c. Lender
d. Servicer

Answers: 1. T 2. T 3. F 4. T 5. F 6. C 7. A 8. B