FIN 351 QUIZZES
Since mortgages typically have multiple costs associated with them, a borrower may attempt to reduce these costs into a single measure in order to compare two or more mortgages. Which of the following measures is a popular tool for comparing the cost of several mortgages? A. Upfront fees B. Contracted interest rate C. Annual percentage rate D. Teaser rate
annual percentage rate
In contrast to conventional market analysis, the "story" approach to market research starts with an analysis of: A. conditions in global real estate markets B. conditions in national real estate markets C. conditions in state real estate markets D. conditions in the property specific market
conditions in the property specific market
Professor James Graaskamp often asserted that when one buys real estate, what one is buying is a set of assumptions about the future. Therefore, it is not surprising that the beginning point of the market research process is to: A. collect relevant data to examine the market and test initial definitions B. evaluate the results of market analysis C. construct a market-defining "story" D. refine market definitions and collect additional data
construct a market-defining "story"
Considered the most common type of home loan, which of the following refers to any standard home loan that is not insured or guaranteed by an agency of the U.S. government? A. Conventional home loan B. Federal Housing Administration loan C. Veterans Affairs loan D. Section 203 loan
conventional home loan
The covenants in a deed are the most important differences among types of deeds. Which of the following covenants promises that the grantor truly has good title and the right to convey it? A .Covenant of seizin B .Covenant against encumbrances C .Covenant of quiet enjoyment D .Exceptions and reservation clause
covenant of seizin
Standard mortgage loans require monthly payments typically composed of two components: interest and principal repayments. When scheduled mortgage payments are insufficient to pay all of the accumulating interest, causing some interest to be added to the outstanding balance after each payment shortfall, the loan is said to be: A. fully amortizing B. partially amortizing C. nonamortizing D. negatively amortizing
negatively amortizing
Which of the following measures is considered the fundamental determinate of market value for income-producing properties? A. Net operating income B. Potential gross income C. Operating expenses D. Capital expenditures
net operating income
A contemporary planning movement that explicitly advocates a traditional grid pattern of development designed to give pedestrian life priority over motor vehicles (e.g., including narrowed streets with houses close to the street and garage access through side alleys) is commonly referred to as: A. urban sprawl B. urban service area C. traditional residential planning D. new urbanism
new urbanism
A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires: A. both parties to be legally competent and of legal majority age. B. only the grantee to be legally competent and of legal majority age. C. only the grantor to be legally competent and of legal majority age. D. both parties to make promises to perform.
only the grantor to be legally competent and of legal majority age.
Suppose a homeowner is reluctant to refinance until he is reasonably sure that interest rates are not going to fall appreciably from where they currently are. In this case, the homeowner appears to be concerned about which of the following costs associated with refinancing? A.Default risk B.Tax consequences C.Upfront fees D.Opportunity cost
opportunity cost
Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is jointly held. All of the following entities are forms of direct co-ownership EXCEPT: A. Tenancy in common B. Tenancy by the entirety C. Condominium D. Partnership
partnership
The map of a subdivision, which displays a sectioned subdivision in parcels, the parcels identified by numbers, and this map is placed in public records, it is called a:
plat
The starting point in calculating net operating income is the total annual income the property would produce assuming 100 percent occupancy and no collection losses. This is commonly referred to as: A. effective Gross Income B. potential Gross Income C. operating expenses D. capital expenditures
potential gross income
A popular adage in real estate is that property value is all about "location, location, location." However, for most property types in nonresidential realms, nonlocational requirements are equally or even more important. All of the following are examples of nonlocational factors EXCEPT: A. Floor plate size B. Amount of parking C. Nature of current tenants D. Proximity to modes of public transportation
proximity to modes of public transportation
A tool used by real estate analysts to relate a consumer's activities, interests, opinions, and values to a consumer's demographics is referred to as: A. geographical information systems (GIS) B. psychographics C. survey research D. census mapping
psyhographics
Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is: A. real property B. home mortgages C. equity REITs D. mortgage backed securities
real property
With most standard home loans, the lender can hold the borrower personally liable in the event of a default. Such loans are commonly referred to as: A. recourse loans B. nonrecourse loans C. conforming loans D. nonconforming loans
recourse loans
The cost approach to valuation assumes the market value of a new building is similar to the cost of constructing it today. Which of the following terms refers to the expenditure required to construct a building of equal utility using modern construction techniques, materials, and design that eliminates outdated aspects of the structure? A. Reproduction cost B. Replacement cost C. Fixed cost D. Variable cost
replacement cost
Many older, retired households are considered "house poor." Which of the following forms of loans has been designed to help mitigate this problem by offering additional monthly income to these homeowners in exchange for a portion of their housing equity? A. Purchase-money mortgage (PMM) B. Piggyback Mortgage C. Home equity loan D. Reverse mortgage
reverse mortgage
While there are several conventional approaches used to estimate the market value of real estate, which of the following is typically considered the most reliable approach? A. Income approach B. Sales comparison approach C. Cost approach D. Investment approach
sales comparison approach
Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement to the land? A. Fence B. Building C. Sewer system D. Personal property
sewer system
Most communities contain a number of tax-exempt properties. All of the following are typically included in the tax-exempt property classification except
single family homes
A law requiring any contract conveying a real property interest to be in writing in order to be enforceable is a modern application of the: A. Statute of Frauds B. doctrine of constructive notice C. habendum clause D. actual notice
statute of frauds
When a borrower decides to stop making payments on an existing mortgage loan despite having the ability to make payments (typically when the home has lost value), this is more commonly referred to as a(n): A. Equity redemption B. Statutory redemption C. Strategic default D. Reverse mortgage
strategic default
The description of land in a deed must be unambiguous. All of the following would be considered acceptable legal descriptions of land except
street address
All of the following are examples of an improvement on the land except
streets
Most often used in the description of urban property, which of the following methods of land description contains information regarding the location of various easements and may even contain a list of restrictive covenants? A. metes and bounds B. subdivision plat lot and block number C. government rectangular survey D. tax parcel number
subdivision plat lot and block number
If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as: A. "Raw" land B. Building site C. Developed land D. Property infrastructure
"raw land"
How many acres are in a subdivision?
640
Tax rates are usually stated in mills. Assuming the tax rate in percentage terms is 6.5%, convert this rate to mills. A. 0.065 mills B. 6.5 mills C. 65 mills D. 650 mills
65 mills
A conventional mortgage loan is one that is not insured or guaranteed by an agency of the U.S. government. The lender, however, can still pursue a private mortgage insurance (PMI) policy to provide a guarantee for the fulfillment of the borrower's obligations. Typically PMI is required for all loans that have a loan to value (LTV) ratio greater than: A. 20% B. 40% C. 60% D. 80%
80%
According to the bid-rent model, which of the following individuals would be the one least likely to live closest to the central business district (CBD)? (Hint: Assume that work locations are located adjacent to each other at the center of the CBD.)
A barista at the local coffee shop who uses a car to commute
According to the bid-rent model, which of the following individuals would be the one most likely to live closest to the central business district (CBD)? (Hint: Assume that work locations are located adjacent to each other at the center of the CBD.)
A doctor at the city hospital who must walk to work
An important distinction both practically and conceptually is the difference between an easement and a license. All of the following characteristics pertain to a license EXCEPT: A. A license is revocable by the grantor. B. A license can be granted orally. C. A license is enduring. D. A license grants permission to use another's land for a specific and limited purpose.
A license is enduring
Which of the following is an example of a negative easement appurtenant? A. A driveway easement across one parcel to another. B. Rights-of-way for roads. C. A common drive easement where owners of adjoining lots must permit each other to use a driveway lying on their shaped property line. D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
Which of the following would most likely be involved in the Equity Capital Market?
Building Owner
Which of the following forms of co-ownership, historically used for apartment buildings, is not considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation? A. Cooperative B. Tenancy by the entirety C. Condominium D. Partnership
Cooperative
In order for a deed to be a valid conveyance of property, there must be an observable, verifiable transfer of the deed to the grantee. Typically this is accomplished when the grantor hands the deed to the grantee at closing. Which of the following basic requirements of a deed does this represent? A. Acknowledgment B. Delivery C. Words of conveyance D. Recital of consideration
Delivery
In an attempt to regulate home mortgage lending after the mortgage crisis of 2007, which of the following acts created an independent oversight agency tasked with the responsibility of overseeing and enforcing Federal consumer financial protection laws, enforcing anti- discrimination laws in consumer finance, restricting unfair, deceptive or abusive acts or practices, receiving consumer complaints, promoting financial education, and watching for emerging financial risks for consumers? A. Equal Credit Opportunity Act (ECOA) B. Truth-in-Lending Act (TILA) C. Real Estate Settlement Procedures Act (RESPA) D. Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Which of the following acts prohibits discrimination in lending practices on the basis of race, color, religion, national orgin, sex, marital status, age or beacuse all or part of an applicants income derives from a public assistances program : A. Equal Credit Opportunity Act (ECOA) B. Truth-in-Lending Act (TILA) C. Real Estate Settlement Procedures Act (RESPA) D. Home ownership and Equity Protection Act (HOEPA)
Equal Credit Opportunity Act (ECOA)
In the late 1960's, Congress created a number of agencies designed to address a struggling secondary market for residential mortgages. Which of the following organizations was developed primarily to guarantee mortgage-backed securities based on pools of FHA, VA and Rural Housing Service loans, rather than issue, buy or sell mortgages? A. Federal National Mortgage Association (Fannie Mae) B. Government National Mortgage Association (Ginnie Mae) C. Federal Home Loan Mortgage Corporation (Freddie Mac) D. Federal Agricultural Mortgage Corporation (Farmer Mac)
Ginnie Mac
In the process of deciding whether to extend a mortgage loan to a prospective borrower, lenders typically examine three elements, more commonly referred to as the "three C's". Which of the following metrics does a bank use to evaluate the collateral piece of the loan agreement?
Loan-to-value ratio
Unlike other forms of evidence of title, title insurance guards the grantee against certain risks. However, there are a number of important limits to title insurance. Which of the following is an example of the limits to title insurance? A. It does not protect the grantee from the threat of physical damage to the property. B. It does not protect a grantee against the legal costs of defending the title C. It does not protect a grantee against loss of the property in case of an unsuccessful title defense. D. It does not protect against legal attack on the owner's title arising from a claim that diminishes the owner's rights of use.
It does not protect the grantee from the threat of physical damage to the property.
Real estate appraisers generally distinguish among the concepts of market value, investment value, and transaction value. Which of the following statements best describes the concept of market value? A. It is an estimate of the most probable selling price of a property in a competitive market. B. It is the value a particular investor places on a property. C. It is the price we observe when a property is sold. D. It is the maximum amount that a seller would be willing to accept
It is an estimate of the most probable selling price of a property in a competitive market.
A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien? A. Property tax and assessment lien B. Mortgage lien C. Lien arising from a court judgment unrelated to ownership of the property D. Mechanics' lien
Lien arising from a court judgment unrelated to ownership of the property
Estimating the market value of real estate is complicated by the unique characteristics of real estate markets. In contrast to stock markets, real estate markets are characterized by all of the following EXCEPT: A. No two assets are considered perfect substitutes for one another. B. Market prices are revealed almost instantaneously to prospective buyers. C. Transactions occur infrequently. D. The physical location of the asset being sold plays an important role in the pricing process.
Market prices are revealed almost instantaneously to prospective buyers
Estimating the market value of real estate is complicated by the unique characteristics of real estate markets. In contrast to stock markets, real estate markets are characterized by all of the following EXCEPT: A. No two assets are considered perfect substitutes for one another. B. Market prices are revealed almost instantaneously to prospective buyers. C. Transactions occur infrequently. D. The physical location of the asset being sold plays an important role in the pricing process
Market prices are revealed almost instantaneously to prospective buyers.
As part of the data analysis step in the appraisal process, it is necessary to consider the highest and best use of the property in question. In regards to determining highest and best use, all of the following statements are true EXCEPT: A. The proposed property use must be legally permissible B. It must be physically possible for the property to be used in the manner specified. C. No financial limits are considered when determining the property's best use. D. The property use must provide the greatest benefit to the owner.
No financial limits are considered when determining the property's best use.
Which of the following types of liens is automatically superior to any other lien? A. Property tax and assessment lien B. Mortgage lien C. Lien arising from a court judgment unrelated to ownership of the property D. Mechanics' lien
Property tax and assessment lien
Considered a "questionable conveyance of title" by most courts, which of the following types of deeds is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the local government through dedication.) A. General warranty deed B. Special warranty deed C. Deed of bargain and sale D. Quitclaim deed
Quitclaim deed
Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their enforcement. All of the following are true regarding the enforcement of restrictive covenants EXCEPT: A. Courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in some cases states have enacted a time limit on their applicability. B. Courts may refuse to enforce restrictive covenants due to changing neighborhood character. C. Courts may refuse to enforce restrictive covenants due to abandonment of the property. D. Restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property.
Restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property
Which of the following is an example of an affirmative easement appurtenant?
a driveway easement across on parcel to another
The difference between judicial foreclosure and power of sale in the treatment of defaulted mortgages can be significant. All of the following statements regarding power of sale are true EXCEPT: A. The power of sale treatment is faster than judicial foreclosure B. The foreclosed property is typically sold through a public auction administered by the court. C. It is less costly for power of sale to be employed than judicial foreclosure. D. Typically, lenders must give proper legal notice to the borrower, advertise the sale property, and allow a required passage of time before the sale
The foreclosed property is typically sold through a public auction administered by the court
Adjustments for physical characteristics are intended to capture the dimensions in which a comparable property differs physically from the subject property. If the only physical difference between the subject property and the comparable is that the comparable does not have a fireplace, which of the following adjustments should take place? A. The transaction price of the comparable property should be adjusted downward. B. The transaction price of the comparable property should be adjusted upward. C. The transaction price of the subject property should be adjusted downward. D. The transaction price of the subject property should be adjusted upward
The transaction price of the comparable property should be adjusted upward
A preliminary approach for ascertaining the number of jobs in a given industry within a county based on its NAICS category can be found by searching:
U.S Bureau of Labor statistics
Real estate professionals have long supported strict standards of ethics and practice. Followed by all states and federal regulatory agencies, which of the following imposes ethical obligations and minimum standards that must be followed by all real estate professionals providing formal estimates of market value? A. Uniform Standards of Professional Appraisal Practice (USPAP) B. Multiple Listing Services (MLS) C. Department of Housing and Urban Development (HUD) D. Office of Federal Housing Enterprise Oversight (OFHEO)
Uniform Standards of Professional Appraisal Practice (USPAP)
Real estate taxes represent the largest single source of revenue for a large portion of local governments. Most property taxes are applied in relation to the value of the property, or in other words, they are: A. effective tax rates B. ad valorem taxes C. tax-exempt D. regressive
ad valorem taxes
Cities such as New York are able to host a variety of complex industries because of the development of specialized resources that support their growth. When specialized resources emerge in response to demand from multiple industries, this is referred to as: A. industry economies of scale B. agglomeration economies C. locational monopoly D. economic inefficiencies
agglomeration economies
While it is often sufficient to rely on informal methods of estimating the market value of real estate assets, the complexity and large dollar value of many real estate decisions dictate that formal estimates based on methodical collection and analysis of relevant market data should be utilized. The unbiased written estimate of the market value of a property is commonly referred to as a(n): A. arm's length transaction B. appraisal C. property adjustment D. reconciliation
appraisal
The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak Street a proportional cost of the new water main. If a property owner refuses to pay their proportional share of the cost, the city may file a(n): A. property tax lien. B. assessment lien. C. general lien. D. mechanics' lien.
assessment lien
Which of the following tools of public land use control represents the earliest method of police power to regulate land use? (Hint: Standards for energy efficiency and sustainability are the most recent trends in the application of this land use control) A. Subdivision regulation B. Zoning C. Building Codes D. Planned Unit Developments
building codes
The expected costs to make replacements, alterations, or improvements to a building that materially prolong its life and increase its value is referred to as: A. operating expenses B. capital expenditures C. vacancy losses D. collection losses
capital expenditures
Real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds? A. User market B. Capital market C. Government D. Property market
capital market
Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n): A. Appreciation rate B. Capitalization rate C. Discount rate D. Internal rate of return
capitalization rate
A new residential development will face competition from other new developments, other builders, and sales of existing homes. To determine if demand in that market segment will be sufficient to justify proceeding with the project, a developer would be most interested in estimating a: A. capture rate B. capitalization rate C. risk-free rate D. risk premium
capture rate
Property rights can be divided into two classes, real and personal. Which of the following is an example of real property? A. Vehicles B. Stocks and bonds C. Patents D. Commercial building
commercial building
Eminent domain is the right of government to acquire private land, without the owner's consent, for public use, with due process and just compensation. The legal procedure for exercising the right of eminent domain is referred to as: A. Growth restriction B. Urban sprawl C. Blighted development D. Condemnation
condemnation
When a borrower defaults on the payment requirements of a loan, there are several options that the lender has at its disposal. When the lender allows the borrower simply to convey the property to the lender rather than pursuing a court supervised process of terminating all of the borrower's claims of ownership of the property, this is commonly referred to as: A. Bankruptcy B. Foreclosure C. Deed in lieu of foreclosure D. Equity right of redemption
deed in lieu of foreclosure
For most mortgage loans on commercial real estate, the right of prepayment is constrained through a prepayment penalty. Which of the following types of prepayment penalties requires a borrower to provide the lender with some combination of U.S. Treasury securities that will serve to replace the cash flows of the loan being paid off? A. Yield-maintenance prepayment penalties B. Prepayment lockout C. Defeasance prepayment penalty D. Curtailment penalty
defeasance prepayment penalty
Once a document conveying an interest in real property is placed in the public records it is binding on the public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is known as the: A. Statute of Frauds B. doctrine of constructive notice C. habendum clause D. actual notice
doctrine of constructive notice
A city's potential for growth or its susceptibility to decline is determined by a set of economic activities that the city provides for the world beyond its boundaries. Economists refer to this set of activities as a city's: A. linkages B. economic base C. local economic activities D. economies of scale
economic base
The right of government to acquire private property, without the owner's consent, for public use in exchange for just compensation is referred to as: A. inverse condemnation B. regulatory taking C. eminent domain D. dedication
eminent domain
Even after a property goes into foreclosure, it is still possible for the borrower to reclaim the property as long as they produce the outstanding mortgage balance and all foreclosure costs incurred to that point. When this occurs, this right is more commonly referred to as: A. Equity of redemption B. Statutory redemption C. Strategic default D. Substantive defaul
equity of redemption
While most real property in the United States is privately owned, government regulations limit private property use and therefore play an important role in the determination of property value. Proponents of government intervention argue that regulation is needed to address the unintended and unaccounted for consequences of one land user upon others, more commonly referred to as: A. incomplete information B. locational monopoly C. externalities D. urban sprawl
externalities
Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value? A. Fee simple absolute B. Fee simple conditional C. Ordinary life estate D. Legal life estate
fee simple absolute
Consider the following excerpt from a sample deed: "The Seller covenants with The Buyer that it has a good right to convey, that the property is free from all encumbrances, and that it forever warrants to defend all of the property so granted to The Buyer against every person lawfully claiming the same." Based on your understanding of the relation between a deed's covenants and the type of deed being conveyed, which type of deed is being conveyed in the statement above? A. General warranty deed B. Special warranty deed C. Deed of bargain and sale D. Quitclaim deed
general warranty deed
Computer software systems that enable one to manipulate and "map" information with great flexibility and speed are referred to as: A. geographical information systems (GIS) B. psychographics C. survey research D. census mapping
geographical information systems (GIS)
For smaller income-producing properties, appraisers may use the ratio of a property's selling price to its effective gross income. This is an example of a: A. Net operating income B. Going-out cap rate C. Going-in cap rate D. Gross income multiplier
gross income multiplier
The growth of the motion picture industry in Los Angeles, the petrochemical industry in Houston, the software industry in "Silicon Valley," are all examples of how the growth of an industry within a city can create cost advantages for future growth. Economists refer to this phenomenon as: A. industry economies of scale B. agglomeration economies C. locational monopoly D. economic inefficiencies
industry economics of scale
In certain states, such as the state of Florida, the transfer of title to the lender does not occur until the borrower defaults. These states are referred to as: A. Title theory states B. Lien theory states C. Conforming states D. Nonconforming states
lien theory states
Operating expenses can be divided into two categories: variable and fixed expenses. Which of the following best exemplifies a fixed expense? A. Utilities B. Property management C. Local property taxes D. Trash removal
local property taxes
Lenders generally require private mortgage insurance (PMI) for conventional loans over 80 percent of the value of the security property. PMI protects a lender against which of the following? A. Losses due to default on the loan B. Legal threat to the lender's mortgage claim C. Stoppage of mortgage payment after the death of the insured borrower D. Changes in the index rate associated with an adjustable rate mortgage
losses due to default on the loan
Preferences of households can vary with time, prosperity, and context. The nuances in the preferences or needs of market subgroups are commonly referred to as: A. market segmentation B. market parameters C. market projection D. market cycles
market segmentation
Recognizing that only recent conveyances alter the status of title, states have established laws that set limits on how far back a title search must go. These laws are commonly referred to as: A. Statute of Frauds B. recording statutes C. encroachments D. marketable title laws
marketable title laws
In real estate markets, a transaction occurs only when the investment value of the buyer exceeds the investment value of the seller. The buyer's investment value is the ________ that he or she would be willing to pay for a particular property, while the seller's investment value is the _______ that he or she would be willing to accept. A. minimum; minimum B. minimum; maximum C. maximum; minimum D. maximum; maximum
maximum; minimum
The most flexible method of land description, capable of describing even the most irregular of parcels, can be described as a very precise, compass-directed walk around the boundary of a parcel. This method is commonly referred to as: A. metes and bounds B. subdivision plat lot and block number C. government rectangular survey D. tax parcel number
metes and bounds
Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset? A. Land B. Building C. Mortgage D. Fence
mortgage
Understanding the revenue generating ability of the core export activities of a local area has important implications on the market value of real estate. When the income that these activities generate is re-spent within the community on other local goods and services, the community is benefiting through a: A. dividend process B. multiplier process C. forced saving process D. diversification process
multiplier process
Despite many innovations in the lending process that made mortgage loans more accessible and affordable to the general public, many potential borrowers faced considerable barriers in qualifying for a loan and making a down payment. Which of the following types of loans was designed for a borrower with weak credit, those who seek 100 percent financing, or who cannot document their income? A. Conventional prime home loan B. Affordable housing loan C. Subprime mortgage loan D. Bridge loan
subprime mortgage loan
Most Adjustable Rate Mortgage (ARM) loans have been marketed with a temporarily reduced interest rate commonly referred to as a: A. rate cap B. teaser rate C. payment cap D. prepayment rate
teaser rate
Since most data for a given market study is not readily available, analysts must be creative in their use of data that they are able to obtain. The primary source for detailed household demographic information is: A. the U.S. Bureau of the Census B. the Federal Reserve C. the local tax collector's office D. Not available publicly
the U.S. Bureau of the Census
Capital markets can be divided into two broad categories: equity interests and debt interests. Equity investors in real estate expect to earn a return on their investment through: A. The collection of rent and price appreciation B. The collection of interest on the borrowed funds used to purchase the property C. The receipt of property taxes D. The case of a borrower default on required mortgage payments
the collection of rent and price appreciation
A principal definition of real estate is as a bundle of rights associated with the possession, use, and disposition of property. Each of the following is a fundamental characteristic of property rights EXCEPT: A. They are enforceable by the government. B. They apply only to tangible assets. C. They are nonrevocable. D. They are enduring.
they apply only to tangible assets
Special assessments are levied to pay for specific improvements that benefit a particular group of properties. All of the following characteristics of special assessments are true EXCEPT: A. They are considered ad valorem taxes. B. They are applied as pro rata charges. C. They are levied directly on the properties benefited. D. They are commonly used to finance streets, storm water systems, sidewalks, and other area
they are considered ad valorem taxes
Which type of urban planning model would most likely include cul-de-sacs?
traditional
The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the: A. User Market B. Capital Market C. Government Sector D. Property Market
user market
When land use controls impose exceptional hardship and loss of value, a relief mechanism must be provided. This relief is referred to as a: A. building code B. zoning ordinance C. comprehensive plan D. variance
variance
In addition to providing home mortgages, large commercial banks have specialized in providing short-term funds to mortgage banking companies in order to enable them to originate mortgage loans and hold the loans until the mortgage banking company can sell them in the secondary market. This type of financing is commonly referred to as: A. Mortgage pipeline B. Loan servicing C. Warehousing D. Loan underwriting
warehousing
In constructing a market-defining "story," it is helpful to answer a series of fundamental questions around which analysis can be built. Which of the following questions is designed to identify the target market? A. What is the real estate product under consideration? B. Who are the customers? C. What aspects of the product do the customers care about? D. Who are the competitors?
who are the customers?
