True or False Questions:

1. With a remainder the grantor conveys to a third party the reversionary interest. 2. Life estates are not inheritable.

3. A REITs net income is generally greater than funds from operations (FFOs).

4. REIT returns are highly correlated with the returns on direct investment in real estate.

5. An asset with a positive Sharpe ratio would be an acceptable investment.

6. The majority of REITs are equity REITs. 7. US REITs cannot own properties in Japan. 8. A lien is a historical summary of the publicly-recorded documents that affect the ownership of a property. 9. After a house is purchased, contractors cannot ask the new owner of the house to pay any bills that were outstanding before the house was sold. 10. The United States is the only country that allows REITs (or similar investments). 11. It is better to refinance when the current mortgage rate is higher than the original mortgage rate.