7. Which of the following legal documents should be used by an 78-year-old man who wants to transfer the ownership of his 2,600 square foot condominium in Honolulu, Hawaii, currently worth $1,300,000, to his 65-year-old daughter?

a.Deed of Trust

b.Promissory note

c.Mortgage

d.Grant Deed

8. When William wanted to sell his beautifully renovated Westwood home, Williams attorney advised him to use a quitclaim deed so that the buyer would:

a.Receive assurance that the property was free from any title defects

b.Be the grantor under the deed

c.Know that all prior liens and encumbrances had been removed from the property

d.Acquire only the legal interest in the property that William previously held

9. During the Great Recession of 2008-2009, property values fell substantially in almost every market globally. By 2010, property values began to rise again in most markets and continued to rise until the COVID-19 pandemic began in early 2020. If you wanted to invest in real estate in 2021, you should carefully assess all the potential risks, including:

a.Market risk, interest rate risk, environmental risk

b.Liquidity risk, capital markets risk, legislative risk

c.Business risk, financial risk, management risk

d.All these answers are correct

10. A real estate owner needed to sell her 30,000 square foot suburban office building in Atlanta, Georgia in 2010 because of a pending divorce. There were few buyers who could qualify for and get a new loan to buy the property at that difficult time in the market, and because the highest offers were all well below the asking price of $6,000,000 the owner instructed her broker to offer the property for sale with 70% seller financing for 5 years interest-only at a below market interest rate of 2.5%. The property was then sold to a buyer who closed with the below market seller financing at the full asking price. Seller financing of real estate might be used in any of the following situations, EXCEPT:

a.When mortgage financing from banks is readily available and less expensive

b.When a seller wants to use the installment sale method to report the capital gain

c.When a seller wants to achieve a better sale price for the property by offering a below market interest rate on the seller financing

d.When a buyer cannot qualify for a mortgage loan from a traditional lender