RE INVESTMENT

What is the typical range of lease terms for major tenants in community shopping centers?

15-20 years

Over how many years is a commercial property depreciated?

39

What's a legal agreement or promise made between two parties?

A covenant

There are three types of international buyers: those who have work visas and are looking for a home to purchase while they're in the U.S., those who are looking for a vacation home in the U.S., and those who are looking for ______.

A luxury home to purchase as an investment

Your client, Gabriel, has invested in a rental property. He looks at his property's operating statement, tweaks the numbers based on his knowledge of the market, and re-works the statement. Gabriel has created ______.

A pro-forma statement

As ______ property manager, you know there's a lot more turnover in your area of expertise.

A residential

Angus is willing to pay the owner a bonus to get a particular location in the neighborhood shopping center for his business. What location does Angus want for his store?

A spot in the center

What type of financing can be used for a purchase, or a significant remodel or improvement, including building on vacant land?

Acquisition

What type of eviction did Eric get granted for?

Actual eviction

What does principal mean in relation to loans?

Amount applied to loan balance

Which of the following is an example of a reverse exchange?

An investor finds and closes on an investment property and then decides to immediately sell another investment property.

Which of the following statements is true regarding trusts?

Any asset may be held in a trust.

What is the source of information about trends in commercial property values and net operating incomes for investors who maintain strong relationships?

Appraisers

Which document is used to create a corporation?

Articles of incorporation

What is an alternative to foreclosure that involves declaring bankruptcy?

Bankruptcy

With a promotional land sale agreement, who's at risk if the underlying mortgage falls into default and foreclosure?

Buyer

For condominium properties, the owner's rights are detailed in which document?

Condominium bylaws

Irmgard, the owner of an office building, is interested in renovating her building and changing it into a condo format. What is the change from office building to office condominium known as?

Conversion

As part of his lease agreement with his landlord, Alex mows the grass around his apartment building each week in return for a small reduction in rent. What is this an example of?

Covenant

Investors may be allowed to deduct operating expenses, real estate taxes, mortgage interest, and what else?

Depreciation

Which of the following accounts for the cost of inflation and the time value of money?

Discounting

What is it about strip stores that makes them appealing to small investors?

Easier to secure mortgage loan

What rights do buyers receive in a contract for deed?

Equitable and legal title and right of possession

What type of deed is considered a court-ordered deed?

Executor's deed

Brandy is going to purchase a strip mall. She is trying to determine exactly how much to borrow for this purchase. She understands that the more she borrows, the greater her risk. What type of risk is she evaluating?

Financial risk

What type trust allows the trustor to receive income from the property that is held in the trust?

GRIT

What is the period of time known as when an investor has funds set aside to make payments on the property for as long as two years?

Holding period

What type of real estate investment trust derives its income from the rent or sale of property and interest dividends?

Hybrid REIT

Widget Corporation's fixed production costs are 78% of its overall production costs, and thus has high operating leverage. As Widget's nearest competitor, Franklin's fixed production costs are 39% of it's overall production costs. Relative to operating leverage, which one of these statements is true?

If Franklin and Widget both increase production by the same rate, Widget will experience a higher profit.

Which real estate trend does revamped zoning laws to allow increased density describe?

Increased density

What is participation financing?

Insuring investment in commercial projects

If an investor realized a gain of $140,000 on the sale of an investment property and the depreciated amount was $20,000, what would happen?

Investor will pay 25% on the $20,000 and either 15% or 20% on the other $120,000.

Jane is selling her home to Micah. What must occur for Jane to effect a transfer of title to Micah?

Jane must deliver the deed to Micah.

What organization should Mitchell consider if he wants to combine pass-through taxation benefits of a partnership with minimal liability of a corporation?

LLC

Which of the following is a disadvantage of investing in residential real estate, including a single-family home rentals?

Landlord responsibilities and tenant relationships

What is bankruptcy?

Legal action to liquidate/restructure debt

What is the formal action to impose property tax called?

Levy

What type of lease does Dean most likely have for his office space?

Loft lease

Which two numbers do you add to calculate maximum price?

Maximum equity and maximum loan

What do debt-to-asset ratios tell us about a company?

Percentage of assets financed with debt

What is beneficiary interest in land that's part of a land trust considered?

Personal property

When it comes to a property's highest and best use, which of the following applies?

Profitability

Who is responsible for ensuring that office building accessibility requirements are met?

Property owners, property managers, and tenants

What piece of information should all commercial leases contain in addition to property address, lease dates, and rent amounts?

Purpose of space rented

What is true about the EPA's environmental impact study?

Results are often reviewed and approved by a community board.

What happens when Sanjay's tenant's 10-year lease runs out?

Sanjay can do whatever he wants with his property.

What are second-home condo investments with a money-back guarantee and lock-in management agreement generally considered by the SEC to be?

Securities

Angus and his partner, Fergus, are so discouraged. All they want is a modest place to call home—not one of those McMansions that they see in every new subdivision. What current market trend is this?

Smaller houses, bigger houses

What is Moses considered if he invested in subdivided land and then sold it without improving it?

Speculator

Brandon recently purchased an old warehouse building. This building will serve as a hub for local deliveries of fruits and vegetables within the state. During its first week in operation, one of the delivery drivers was involved in an accident that spilled coconuts all over the road and shut down the interstate for hours. What type of risk is this?

Static

Which shapes are the most common for community shopping centers?

Straight line, L-shaped, and U-shaped

In which form of co-ownership is ownership inheritable?

Tenancy in common

Sam and Monique knew that the old industrial site that they purchased needed some environmental cleanup, but they don't have the cash and put cleanup on hold. The EPA hired its own crew to deal with groundwater issues because of industrial solvents and billed Sam and Monique $164,000 when the job was complete. If Sam and Monique don't pay the bill, which one of the following could happen?

The EPA can seek damages in court for up to three times the actual cleanup costs.

What information should all commercial leases contain?

The lease agreement start and end dates

Under a sole proprietorship form of business, ______.

The owner assumes personal liability for all debts

Quentin is a victim of fair housing discrimination who is seeking redress in federal court. What is the limit on the amount of punitive damages he may be awarded?

There is no limit

Which ADA title prohibits private employers, state and local governments, employment agencies, and labor unions from discriminating against qualified individuals with disabilities?

Title I

Which ADA title is concerned with the accessibility of public accommodations?

Title III

What is the trustee's role when a deed of trust is used to secure property for a loan?

To hold legal title to the property on behalf of the beneficiary until the loan is repaid

How many anchor tenants does Jarod's community shopping center have?

Two

What are discounted cash flow analysis and annuity capitalization two forms of?

Yield capitalization

How many days after receiving a property report from a subdivision developer do buyers have to cancel their purchase agreement?

seven