Question
1) Ultimate Ownership can always be directly established once you know the legal structure of the company owning a certain unit of real estate. True
1) Ultimate Ownership can always be directly established once you know the legal structure of the company owning a certain unit of real estate.
True
False
2) In which situation will the so-called Principal-Agent problem become relevant when considering investments in Real Estate?
Payments of the principal can be too high for the agent when paying a mortgage loan.
The principal might perform actions the agent does not approve of.
The agent could be the person managing a portfolio, who might not act in the best interest of the investor or principal.
The principal-agent problem is irrelevant in equity investment for commercial real estate, but might be important in other business decisions.
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