REE3043 final - Quiz - chapters 8 10 11 12 14 19

A sales contract specifies a 6 percent commission. 40 percent of this commission goes to the listing agent, 20 percent goes to the selling agent and 40 percent goes to the brokerage firm. How much commission will the seller pay when his or her property sells for $65,000?

$3,900.00

A patio house is very similar to a detached house except that there is no side yard on at least one side T/F

T

In order to determine project feasibility, developers need to know the local market T/F

T

Landlords and their property managers are prohibited from discriminating against residential tenants on the basis of their race, color, national origin, religion, sex, familial status, or physical disability. T/F

T

Mobile-home financing has become more comparable to conventional home financing in recent years T/F

T

What is the main factor that determines the size and shape of a trade area? A. Type of goods desired B. Nature and location of the competitive centers C. Location of major transportation facilities D. Quality of transportation

B. Nature and location of the competitive centers

Which of the following is not one of the principal types of residential development? A. Single-family detached B. Power Center C. Single-family attached D. Manufactured homes

B. Power Center

In property management, the management agreement establishes an agency relationship between the owner of the property and the A. Tenants B. Property Manager C. Property manager and the tenants D. Maintenance Staff

B. Property Manager

The listing agreement will Not usually contain the A. asking price B. Selling price C. location of the property D. Authority granted to the broker

B. Selling price

The most desired type of housing in America is A. Patio Homes B. Single-family Detached C. Plexes D. Single Family attached

B. Single-family Detached

Which of the following statements apply to a provision in a listing agreement stating that the broker is entitled to a commission when a ready, willing, and able buyer is found and introduced to the seller? A. This provision is a subrogation clause B. This provision is a commission-on-sale clause C. A broker may earn a commission even though no sale occurs D. A broker may not earn a commission even though a sale occurs

C. A broker may earn a commission even though no sale occurs

In a cash-flow projection, the net operating income is determined by starting with the gross potential income, calculating the gross effective income, and then A. Deducting vacancies and bad debts B. Deducting depreciation C. Deducting operating expenses D. Adding depreciation

C. Deducting operating expenses

Which of the following terms refers to public investment in roads, water lines, sewer systems and other public facilities? A. Public provision B. Gentification C. Infrastructure D. Public Policy

C. Infrastructure

As the elderly become an increasingly larger component of the total population in some areas, the demand for all the following will likely increase EXCEPT for A. vacation houses B. condominium housing C. Larger-sized single family detached housing D. Retirement village housing

C. Larger-sized single family detached housing

The most important consideration in the selection of shopping-center sites is A. Size and shape B. Utilities C. Location and access D. Topography and drainage

C. Location and access

Which of the following investment analysis measures gives the investor the best measure for overall financial decision making? A. Cash on cash return B. Income capitalization rate C. Net present value D. Payback period

C. Net present value

As a neighborhood declines A. public services increase, as do rents and prices B. prices and rents increase, but public services decrease C. public services increase, as the population density decreases D. population density increase, but public services remain stable

D. population density increase, but public services remain stable

The goal of a property manager is to maximize the occupancy rate for the property. T/F

False......... functions of a property manager is: Administration, marketing and advertising, tenant selection, and lease negotiation

The most common form of compensation for property managers is A. A fee based on a percentage of gross income B. a fee based on a percentage of the net income C. weekly, monthly or annual salary D. a fee based on a percentage of after-tax cash flow

A. A fee based on a percentage of gross income

What term refers to the duties of a property manager with respect to collection of rents, record-keeping and report preparation? A. Administrative management B. Marketing C. Physical management D. All of the Above

A. Administrative management

Which of the following terms refers to the cash flow a real estate investor can put in his or her pocket at the end of the year? A. NOI B. ATER C. BTER D. Leverage

B. ATER

What type of tenants are expected to attract shoppers to the shopping center and benefit other tenants? A. Secondary B. Anchor C. Boutique D. Specialty

B. Anchor

The typical size for a community shopping center is A. about 50,000 square feet of gross leasable area B. B/t 100,000 and 300,000 square feet of gross leasable area C. about 750,000 square feet of gross leaseable area D. more than 1,000,000 square feet of gross leaseable area

B. B/t 100,000 and 300,000 square feet of gross leasable area

Which type of shopping center provides a wide range of merchandise and is usually built around a junior department store or a discount store? A. Neighborhood B. Community C. Convenience D> Regional

B. Community

Which of the following is typically not a characteristic of a "poor" or declining real estate market? A. Falling rent levels B. Decreasing vacancy rates C. Less new development D. Falling sales prices

B. Decreasing vacancy rates

A patio house, or zero-lot-line house, is similar to a detached house T/F

T

In evaluating a potential tenant for a residential lease, a property manager should give more emphasis to the recommendation provided by an applicant's landlord before the current landlord than the one provided by the current landlord. T/F

T

The commission paid in the real estate brokerage industry is usually A. A percentage of the mortgage B. A fixed dollar amount per transaction C. Percentage of the gross sales price D. Included as discount points paid as the closing

Percentage of the gross sales price

Which of the following terms refers to the process of spreading risk exposure across different investment opportunities? A. Diversification B. Leverage C. Depreciation D. Appreciation

A. Diversification

Which of the following is not a part of a city's infrastructure? A. Donuts shop B. Sewerage C. Cable Television D. Public utilities

A. Donuts shop

Although there are exceptions, the primary reason most people live in the communities they do is because of A. Employment opportunities B. Cultural activites C. Climate D. Political stability

A. Employment opportunities

In the typical agency relationship between sellers and brokers, brokers are the _____________ of sellers, and must protect their clients' best interest at all times. A. Fiduciary B. Subagent C. Principal D. Agency

A. Fiduciary

The agency relationship between the property owner and manager is defined in a contract called a A. Management Agreement B. Listing Agreement C. Compensation Agreement D. Rent schedule

A. Management Agreement

Carl is a real estate broker in Florida who has agreed to act as an agent for Sandra and help her sell her home. They sign an exclusive agency listing agreement that gives Carl 90 days to search for a buyer. After 75 days, no buyer has signed a contract to purchase the property and Sandra asks Carl to cancel the listing agreement. Reluctantly, Carl agrees they go their separate ways. Two days later, Carl learns that Sandra has just signed a contract with a buyer who viewed the home with Carl while the listing agreement was active. Is Carl entitled to compensation if he pursued this matter through the legal system? A. Most likely, yes B. Most likely, no C. only if he is a licensed real estate sales associate D. Only if Sandra is herself a real estate broker

A. Most likely, yes

A listing agreement whereby the seller reserves the right to sell the property himself without having to pay a commission and also allows other real estate agencies to sell the property and earn a commission best describes what type of listing? A. Open B. Exclusive Agency C. Exclusive D. Exclusive right-to-sell

A. Open

If you were the listing broker, which of the various listings would you most prefer? A. Open Listing B. Exclusive-agency Listing C. Multiple Listing D. Exclusive right-to-sell listing

A. Open Listing

Which type of shopping center caters to unusual market segments and offers high quality, high priced merchandise in boutique-type stores? A. Specialty B. Super Store C. Neighborhood D. Community

A. Specialty

If faced with a choice between two real estate investment opportunities that both offer positive, but not equal, NPV, which one do you take? A. The opportunity with the highest NPV B. The opportunity with the lowest NPV C. Both opportunities are equally desirable D. such a choice could never occur in competitive real estate markets so the question is moot

A. The opportunity with the highest NPV

Commercial development tends to occur A. along main highways and at major transportation intersections B. in depressed regions of a city C. A and C only D, inoutlying areas where land is cheap

A. along main highways and at major transportation intersections

When a developer is contemplating the construction of a shopping center, a market and feasibility study should ideally be performed A. before applying for a mortgage loan B. after applying for a mortgage loan C. before a potential anchor tenant considers signing a lease D. at the same time as applying for a mortgage loan

A. before applying for a mortgage loan

Which type of shopping center is most likely to be built in the "strip" style? A.Neighborhood B. Community C. Convenience D. Regional

A.Neighborhood

The development of land between existing structures is called A. Vertical Growth B. Outward expansion C. the use of air rights D. in-filling

D. in-filling

What is the name of the illegal practice of showing minority buyers only those properties located in areas currently dominated by minorities? A. Prospecting B. Blockbusting C. Steering D. Qualifying

C. Steering

A typical size (Gross Leasable Area) for a regional shopping center is A. about 50,000 sq ft B. more than 1,000,000 sq ft C. b/t 300,000 and 750,000 sq ft D. about 100,000 sq ft

C. b/t 300,000 and 750,000 sq ft

When a neighborhood is revitalized, which term describes the displacement of lower-income residents by higher-income residents? A. Filtering B. in-filing C. gentrification D. flight

C. gentrification

What percentage of sales at a typical shopping center is expected from the primary trade area? A. 30 to 40 percent B. 50 to 60 percent C. 40 to 50 percent D. 60 to 70 percent

D. 60 to 70 percent

A corporate real estate asset manager is usually responsible for A. Management B. Acquisition and disposition C. Financing D. All of the above

D. All of the above

The advantages of attached housing include A. less environmental impact on the site B. lower per unit developmental costs C. lower per unit land costs D. All of the above

D. All of the above

Which of the following statements is not true about brokers? A. Brokers assist in negotiating agreement b/t buyers and sellers B. Brokers receive compensation in the form of commission for their services C. Brokers often specialize in certain property types D. Brokers take ownership of the item being transferred for at least a brief moment in time

D. Brokers take ownership of the item being transferred for at least a brief moment in time

The property manager's primary objective is to secure for the owner the A. Highest gross return over the life of the property B. Shortest payback of the original investment C. Highest cash return on the property at the time of reversion D. Highest net return over the useful life of the property

D. Highest net return over the useful life of the property

Neighborhoods in the gestation stage, the youth stage or the maturity stage in the life cycle of neighborhoods are characterized by A. All of the above B. High unemployment and high crime rates C. a large proportion of abandoned or deteriorated structures D. a general rise in redisents' income and property value

D. a general rise in redisents' income and property value

Which of the following is a function of an asset manager for a business firm? A. Management of the firm's real property facilities B. Acquisition of real property to satisfy the firm's real property requirements C. Arranging financing for new facilities D. Redeployment of property that is no longer needed by the firm's operations E. All of the above

E. All of the above

A zero lot line development is a form of attached housing development in which individual dwelling units are placed on separately owned lots T/F

F

The attached row house is a 20th-century concept T/F

F

Mobile homes generally appreciate in value T/F

F, Depreciate