Reading Comp 11, 12, & 13: Real Estate Markets, Exam Review Ch 11,12,13., Reading Comp Ch 14 - Urban & Regional Economics, Exam Review Ch 14., Reading Comp - Ch 6 & 8 Brokerage, Agency, & Sales Contracts, Exam Review Ch 6 & 8, Reading Comp: Ch 9 - 10...
Users
...... of space often have specific requirements for the type of space they demand and the locations of that space.
Administrations
....... refers to record keeping, report generation, paying the property's bills, monitoring employees, and generally overseeing the property's operations.
Title Search
A ... search reveals the ownership history, or chain of title of a property.
Fiduciary
A ..... is a person who occupies a position of trust and confidence in relation to another person or his or her property.
Listing Agreement
A ..... is the contract that defines the relationship between the property and the real estate broker.
Marketable
A ...... title is one that is free and clear of all past, present, or future claims that would cause a reasonable purchaser to reject such title.
Deed
A __________ is a legal document used to transfer ownership rights to real estate from one party to another.
Quitclaim Deed
A __________ is generally used to clear a cloud on the title.
True
A bargain and sale deed implies that the grantor has title to the property and the right to convey it, but makes no actual guarantees as to the title's validity.
Equilibrium
A market is said to be in ..... when the price negotiated between suppliers and purchasers results in the quantity of goods or services offered by suppliers equaling the quantity of the good or service desired by purchasers.
False
A real estate agent may withhold information from his or her client if doing so will help facilitate the sale.
Sells property for other people
A state license is required for anyone who
Has the same duties to the principal as the original agent.
A subagent
Abstract
A title ...... is a written summary of the chain of title for a given parcel of real estate.
True
A transaction broker can be used if the agent would otherwise have a dual agency relationship with both the buyer and the seller.
True
A valid deed must contain some recital of consideration, or a statement of what of value was given up and what benefit was received.
The fixed location of real estate
All of the following factors affect urban growth patterns EXCEPT:
False
All real estate agents are Realtors.
False
All real estate sales contracts require that the seller provide the buyer with an insurable title.
Asset Manager
Another type of manager known as the ....... is increasingly becoming common in the real estate market.
Occurs when you can earn a guaranteed profit by buying and selling an asset
Arbitrage
price
As opposed to market value, which is an estimate of the most probable selling price, ...... is the amount paid for a property in a particular transaction.
Covenent
Assuming that a seller is required to present a warranty deed, he or she will ..... that the real estate is free of encumbrances other than those specified in the deed.
Maximum
Bid-rent refers to the ...... rent that a potential real estate space user would be willing to pay, or "bid," fro a specified location.
Highest & Best Use
By definition ..... is that use of a parcel that will produce the highest economic return or price to the owner.
Market Analysis
By definition a ..... is an examination of the supply and demand sides of a real estate space market segment and the balance (equilibrium) between these two sides.
Market
By definition a ...... is the mechanism or arrangements through which goods and services are traded between market participants.
highest
Class A buildings are those that will generate the .... rents per square foot due to their high quality and/or superior location.
Yes
Claudius has a contract to purchase some farmland in Harvey County effective September 25, 2010. The last five transfers of ownership of this property happened on the following dates: January 3, 2008; March 14, 1997; December 20, 1993; February 22, 1986; and March 1, 1959. If a title search reveals a competing claim arising from an event on April 30, 1965, can this defect affect the marketability of the title?
March 1, 1959
Claudius has a contract to purchase some farmland in Harvey County effective September 25, 2010. The last five transfers of ownership of this property happened on the following dates: January 3, 2008; March 14, 1997; December 20, 1993; February 22, 1986; and March 1, 1959. What is the root of title for this transaction?
False
Commission rates for real estate firms are usually set by the local real estate board.
Involuntary Alienation
Condemnation and escheat are two examples of
(FIRREA)
Congress passed the Fianancial Institutions Reform, Recovery, and Enforcements Act
Legal
Consideration often is described as anything that incurs a legal detriment or the forgoing of a ..... benefit.
Land contracts or agreements for deed.
Contracts for deed are sometimes called .......
"Property type, geographic location, and use or quality within a type"
Different real estate markets are typically defined by which three characteristics?
Sector Model
Extensive studies in the 1930s of residential neighborhood change also led to the development of the .... of urban growth.
True
Goods that are produced using weight-gaining processes typically locate near their end users (customers).
False
Goods that are produced using weight-losing processes typically locate near their end users (customers).
Warranty
In a .... deed, the grantor makes promises that cover the traditional covenants and warranty.
Self Sufficient
In a developed economy, and even in most primitive societies, neither the individual nor the community can be wholly .....
Interest
In a real estate transaction, title insurance may be purchased for the buyer-grantee or for the institution (mortgagee) financing the transaction and taking a security .... in the real estate
Offer
In essence, an ..... is a statement that specifies the position of the maker of the offer.
Insurance
In many parts of the country, title ..... , which grew out of the expanded function of abstract companies or a group of lawyers, is purchased to provide protection in case the acquired title is defective.
Asset Markets
In the __________, investors buy and sell real estate to receive rights to the cash flows it will generate.
Supply
In the basic supply/demand equilibrium model developed by economists, .... is defined as the amount or quantity of the good or service that will be offered at various prices.
Land values increase by the same amount in both the center of the city and on the edges.
In the bid-rent model, what impact does an increase in a city's population have on land values?
Yes
John is a real estate broker who has a listing agreement with Mary. Walter is a potential buyer who is considering Mary's property. Walter has indicated he is willing to pay much more than his initial offer for the property. Is John required to disclose this information to Mary?
Leah ( The Buyer )
Leah bought Isaac's house, received a deed and moved into the residence, but neglected to record the document. One week later, Isaac died, and his heirs in another city, unaware that the property had been sold, conveyed title to Rachel, who recorded the deed. Who owns the property?
Policy
Mortgage companies usually require a title insurance .... before they will lend money to purchase the property.
False
Multiple listing services usually require the same commission be charged by all brokers that are members of the system.
Trained
Professional property managers are ..... to manage properties efficiently with objective of securing the highest net return for the property owner over the property's useful life.
Comparative Advantage
Rapid economic and population growth generally results because on locale has a ..... over another.
Risk
Real estate asset market prices are determined by three main factors: opportunity cost of capital, growth expectations, and ....
1. Private debt markets. 2. Private equity markets. 3. Public equity markets. 4. Public debt markets
Real estate assets compete with other capital market assets in ____________. More than one answer may be correct; select all correct answers for credit.
An agreement or promise
Some deeds contain covenants and warrantees. A covenant is
False
Specialized industrial facilities are attractive to real estate investors because of the high rents they command with very little risk.
Rents for existing industrial space will rise and vacancies will fall.
Suppose we were to see a sudden INCREASE in the demand for industrial space in Wichita. Which of the following scenarios is most likely to follow in the short run?
Torren's System
The .... of land registration provides the land owner with a title certificate similar to that used to show title to a car.
Multiple-Nuclei
The ..... model of city growth takes the sector theory another step toward describing the actual growth process.
Management Agreement
The ...... establishes an agency relationship between the owner of the property and the property manager.
Star-shaped.
The axial model of urban growth results in a city that is
"good" advertising
The key to ..... is using the advertising tool that will attract the best tenants to the particular property type.
Strategic
The management function of the real estate asset manager goes beyond facility management to include the ....... decisions involving the real estate needs of the firm.
Filtering
The passage of older housing to less affluent families as it ages is referred to as ...... and is an important element in neighborhood change.
Searches the public records and then summarizes the events and proceedings that affect title
The person who prepares an abstract of title for a parcel of real estate
Real estate salespersons must work for licensed real estate broker rather than operate their own brokerage operation.
The primary difference between a real estate broker and a real estate salesperson is that
False
The process of neighborhood deterioration and decline is inevitable.
Operation
The property manager may be involved in virtually all aspects of the ....... of a rental property.
Axial Model
The result, according to the ..... of growth, is a star-shaped city with growth extending outward along transportation lines.
Deed
The sales contract should always specify what kind of ....... that is to be delivered by the seller.
Deposit
The security ...... is money collected from the tenant prior to granting occupancy that protects the landlord from damages the tenant may cause or from failure to pay rent as agreed.
Grantor
The seller, or giver, is the ..... and the buyer, or receiver, is the grantee.
Vacancy rate goes down
The supply of property services is considered to be more elastic than the supply of properties. Which of the following events might logically follow an increase in demand for property services?
Economic base
The term __________ refers to industries that bring income into a region from beyond its borders.
market
The type of value that real estate appraisers generally attempt to estimate is ....... value.
Evaluate
To ..... prospective tenants on valid grounds, property managers should request from each tenant a completed tenant application that collects information regarding the applicant's financial resources (including employment and income status), credit history, and references from prior landlords.
Contractual Capacity
To have a valid contract, all parties involved must have ....
Close
When all the conditions of the sales contract have been met, the last step in the transaction process is to ...... or settle the transaction.
Property Manager
When an owner hires a professional, the ...... acts as an agent for the property owner with respect to the leasing, marketing and overall operations of the property.
Deed
When title to real estate is to be transfered today, a written document called a ..... must be given by the grantor to the new owner, the grantee.
1. The area has a skilled labor force 2. The area provides an attractive climate and amenities. 3. The areas has an abundance of natural resources 4. The area provides a natural break between different transportation methods
Which of the following is NOT an important factor in explaining why and how cities develop in particular areas? More than one answer may be correct; select all correct answers for credit.
The sale price must be a fair price for the property being transferred.
Which of the following is NOT required for a real estate sales contract to be valid?
1. The contract must be in writing. 2. Both the buyer and the seller must agree to the exact same terms. 3. Both parties must be of legal age and mentally competent 4. Each party to the transaction must give up something of value.
Which of the following is required for a real estate sales contract to be valid? More than one answer may be correct; select all correct answers for credit.
Decreasing vacancy rates
Which of the following is typically NOT a characteristic of a "poor" or declining real estate market?
Fixed Location
Which of the following physical and economic characteristics of real estate is the most important because it drives the others?
1. Vacancy rate 2. Rent levels
Which of the following serves as an indicator of the balance between supply and demand in a real estate space market? More than one answer may be correct; select all correct answers for credit.
Concentric circle theory
Which of the following theories of urban development suggests that cities will develop outward leading to a "hollow-shell" effect?
Sector Theory
Which of the following theories of urban development suggests that land-use patterns remain fairly uniform as you move out in one direction from the city center?
Exclusive right to sell listing
With a(n) __________ one authorized agent receives a commission regardless of who sells the property, even the property owner.
Specialty shopping centers
__________ are generally characterized by a dominant theme or image.
Class C
__________ office buildings offer cost-effective, usable space, but suffer from significant functional obsolescence or are in less-desirable locations.
Broker
a real estate ..... is a specialized type of broker, an intermediary licensed by the state in which he or she operates, who arranges real estate sale or lease transactions for a fee or commission.
Basic Activities
export activities also called .... which produce goods and services for sale or consumption outside the areas borders.
Real Estate Space Markets
involve transactions for the rights to use land and buildings.
Demand
is defined as the amount or quantity of the good or service that will be desired at various prices.
Non-Basic Activities
population-serving activities, also called ..... which produce goods and services for sale or consumption within the community itself.
The real estate asset market
reflects transactions involving cash-flow rights to real estate.
