SAE Invester

Under current tax law, what's the maximum tax-free gift an individual can give to another individual annually? $10,000 $12,000 $15,000 $56,000

$15,000

Catherine has decided to purchase additional parcels to add to the existing farm ground she's planning to sell. Catherine knows combining the parcels into one larger plat will increase the value of the land. What's this called? 1. Assemblage 2. Excess land 3. Plottage 4. Surplus land

1

What's the purpose of an attornment clause in a lease? 1. It notifies tenants that their lease is still in effect if the building ownership changes. 2. It notifies tenants that the landlord may begin eviction proceedings if the tenant doesn't pay the rent. 3. It provides for the return of the security deposit in the event the building changes ownership. 4. It requires tenants to notify the landlord if guests will stay beyond seven days.

1

Which of the following statements best describes a foreclosure by advertisement? 1. Notification of pending auction, public auction, notice of eviction 2. Notification of pending auction, repossession, notice of eviction 3. Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed 4. Petition to enter, repossession, notice of eviction

1

Which of these are the two primary REIT types? 1. Mortgage and equity 2. Public and private 3. Short-term and long-term 4. Tax-deferred and tax-advantaged

1

A trust involves a special relationship called a fiduciary relationship. Which of the following statements is true regarding trusts? 1. Any asset may be held in a trust. 2. The beneficiary can't be a minor. 3. The trustee conveys title to the trustor. 4. The trustor is the person who carries out the trustee's wishes.

1.

Which of the following terms refers to the process of combining separate adjacent parcels into one piece of land? 1. Assemblage 2. Excess land 3. Plottage 4. Surplus land

1.

Vacancy rates in existing brick-and-mortar stores are around ______. 12% 14% 18% 20%

14%

In addition to the two anchor tenants, how many tenants does a community shopping center normally have? 10 to 35 15 to 40 20 to 50 Five to 20

15-40

Deidra wants to invest in a super-regional shopping center. What size trade area can she plan to service? 1. Five to 10 miles 2. Five to 25 miles 3. Five to 35 miles 4. Five to 45 miles

2

Dom, the owner of a single-lot investment, has decided to lease his property. What happens if the tenant makes improvements to the property, and then decides not to renew the lease when it expires? 1. Dom must pay the tenant for the improvements. 2. The improvements belong to Dom. 3. The tenant can remove any improvements as long as it doesn't damage the land. 4. The tenant can subtract a portion of the cost of the improvements from the last month's rent.

2

Mutual savings banks have limitations on their lending activities, as specified in their ______. 1. Bank rules 2. Charter 3. Manager's guide 4. State laws

2

What is it about strip stores that makes them appealing to small investors? 1. Commercial tenants tend to prefer short-term leases, which means an opportunity to increase rents more often. 2. It's easier to secure a mortgage loan for a small commercial project. 3. The building owners don't have to cater to the needs of a variety of tenants. 4. The buildings are located away from busy thoroughfares.

2

When licensees focus all their efforts on one segment of the real estate market with the intention of minimizing, and perhaps even eliminating, the competition, this is known as ______. 1. Foolhardy 2. Niche marketing 3. Smart business 4. Supply and demand

2

Which of the following statements about trends in condominium ownership is true? 1.Condominium ownership has to be a one-to-one relationship. 2.Condominiums are frequently used as timeshares. 3.Condo ownership is moving away from fee simple and toward estate for years. 4.Fewer buyers are interested in owning a condo.

2

Tyrell and Barb bought a commercial investment property in 2009 during the real estate market downturn. Through what year will they be able to depreciate the investment? 2019 2029 2039 2048

2048- 39 years

Carmine buys unimproved land and develops it in stages, selling it off as it's improved. Carmine is a _______. 1. Financier 2. Fix and flipper 3. Land banker 4. Wholesale investor

3

How can liens, such as those created by non-payment of federal income tax, result in mortgage default? 1. Banks are government-owned, so a lien on unpaid taxes is equal to a mortgage default. 2. Federal income taxes are part of the mortgage payment. 3. New liens can threaten the lender's position as primary lienholder. Default can occur for this reason. 4. The IRS requires the bank to cover the overdue amount.

3

Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court? 1. Bifurcation 2. Parcel 3. Partition 4. Severalty

3

Santiago plans to develop a super-regional shopping center. What size lot will he need? 1. 20 to 80 acres 2. 40 to 100 acres 3. 60 to 120 acres 4. 80 to 140 acres

3

Which of the following statements about non-compete clauses and community shopping center leases is true? 1. A non-compete clause is included in a community shopping center lease if the tenant requests it. 2. Non-compete clauses are included in leases that contain a cancellation clause. 3. Non-compete clauses aren't used in community shopping center leases. 4. Non-compete clauses are only included in leases with major tenants.

3

Aimee is in the process of taking over property management for a large apartment complex owned by Ginger. What is one thing she should get from Ginger? 1. A 90-day grace period to get all files in order 2. A referral to other commercial property owners 3. A written acknowledgement from all renters stating that they understand the transition taking place. 4. The contact information for Handy Manny, the maintenance man

4

Hester has been doing her research and attending city planning meetings in hopes of finding a single-family home on the edge of a commercial district. What type of investment opportunity is Hester looking for? 1. A conversion 2. A fixer-upper 3. A historic property 4. A home targeted for rezoning

4

Marlin wants to invest big. He's interested in a commercial property that's at least 1.2 million square feet, has tons of parking, and at least two big name anchor tenants. What type of retail space is Marlin considering? 1. Factory outlet 2. Neighborhood center 3. Strip mall 4. Super-regional mall

4

Moses invested in subdivided land and then sold it without improving it. This makes Moses ______. 1. A developer 2. An assessor 3. A reviewer 4. A speculator

4

Property manager Elise sends a monthly report to her client Katherine, who owns an apartment complex. What can Katherine expect to see on this report? 1. A list of all renters and their contact information 2. A list of subcontractors who will be maintaining the property 3. Details of all tenant concerns 4. Rental receipts, income, disbursements, and operating expenses

4

The use of one investment to finance another is called _______. 1. Blockbusting 2. Churning 3. Equity build-up 4. Pyramiding

4

What is the purpose of an abatement program? 1. Increase costs and put a moratorium on future development 2. Increase development costs and fees 3. Put a moratorium on building 4. Stimulate community revitalization

4

When taking an analytical look at the area surrounding a proposed development, the traffic patterns—and their effect on local business—and the commute time for potential residents in the area are important factors to consider. These can all be determined by conducting _______________. 1. A community acceptance assessment 2. An appraisal 3. A survey 4. A time-distance study

4

When would ancillary probate proceedings be required? 1. On the death of the second spouse. 2. When an executor can't be found. 3. When a will is being disputed. 4. When the deceased owned property in another state.

4

A temporary organization that's formed by two or more parties in order to invest in real estate is known as _____________. A corporation A hybrid A joint venture An LLC

A joint venture

Melanie manages the records in her brokerage office. Which of the following is vital to Melanie with regards to record management? A secure storage area for storing records Color-coded files Copying the master file to give the agent their copy. Monthly shredding parties

A secure storage area for storing records

Catherine has decided to purchase additional parcels to add to the existing farm ground she's planning to sell. Catherine knows combining the parcels into one larger plat will increase the value of the land. What's this called? Assemblage Excess land Plottage Surplus land

Assemblage

Which of the following terms refers to the process of combining separate adjacent parcels into one piece of land? Assemblage Excess land Plottage Surplus land

Assemblage

Which class of office building can compete for premier office users and command above-average rents? Beyond class category Class A Class B Class C

Class A

Which type of real estate investment trust is designed to deal exclusively in equities? Equity REIT Hybrid REIT Investment REIT Mortgage REIT

Equity REIT

Deidra wants to invest in a super-regional shopping center. What size trade area can she plan to service? Five to 10 miles Five to 25 miles Five to 35 miles Five to 45 miles

Five to 25 miles

A temporary organization that's formed by two or more parties in order to invest in real estate is known as _____________. A corporation A hybrid A joint venture An LLC

Joint Venture

Carmine buys unimproved land and develops it in stages, selling it off as it's improved. Carmine is a _______. Financier Fix and flipper Land banker Wholesale investor

Land banker

Which organization manages and charters credit unions? Department of Treasury FDIC IRS NCUA

NCUA

A subchapter S corporation is taxed as a/an ________, whereas a C corporation is taxed at both the corporate and shareholder levels. Entity Individual Partnership Sole proprietorship

Partnership

Land doesn't just cease to exist, a characteristic called ______. This is one reason that long-term, complex financing arrangements can be used. Immobility Permanence Slowness of response Uniqueness

Permanence

As a(n) ______ property manager, you know there's a lot more turnover in your area of expertise. Office Real estate development Residential Retail

Residential

What is the purpose of an abatement program? Increase costs and put a moratorium on future development Increase development costs and fees Put a moratorium on building Stimulate community revitalization

Stimulate community revitalization

Marlin wants to invest big. He's interested in a commercial property that's at least 1.2 million square feet, has tons of parking, and at least two big name anchor tenants. What type of retail space is Marlin considering? Factory outlet Neighborhood center Strip mall Super-regional mall

Super-regional mall

A like-kind exchange, or 1031 exchange, is also referred to as a ______. Incentive exchange One-to-one exchange Property swap Tax-deferred exchange

Tax-deferred exchange

Which of the following best defines capitalization rate? The expected rate of return on investment The rate at which assets depreciate over time The rate of capital recapture The value of a business as an investment

The expected rate of return on investment

A grantor retained income trust is a type of trust that allows what? A deceased person's last wishes to be carried out Pass-through tax benefits The avoidance of probate The grantor to receive income

The grantor to receive income

What can be depreciated by an investor? Expenses Land Tools and equipment Water

Tools and equipment