RES431 Midterm Part 1

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as

"raw" or undeveloped land

Given the following information, compute the property tax rate for the community in mills: total budget expenditures: $250 million; total nonproperty tax income: $150 million; total assessed value of all properties: $5 billion; total exemptions: $900 million.

$24.3 million

State and federal control of land uses has increased greatly over the past 40 years due in part to an increased awareness of environmental hazards. Which of the following federal environmental control laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of abandoned and unregulated waste dumps?

Comprehensive Environmental Response Compensation and Liability Act

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 license is enduring

An early model of land use is the concentric ring model of urban form developed by E.W. Burgess. Of the following land uses, which would be closest to the downtown area of the central business district (CBD) according to Burgess's model?

a zone of transition that contains warehousing and other industrial land uses between the downtown area and the residential area

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

ad valorem taxes

An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple interest is conveyed to a new owner without a deed and without the consent or knowledge of the original owner, this is said to be conveyed by

adverse possession

An easement is the right to use land for a specific and limited purpose. Which of the following easements involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and gives the dominant parcel some intrusive use of the servient parcel?

affirmative easement appurtenant

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

agglomeration economies

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)

capitalization rate

In creating evidence of title, a title search attempts to identify the sequence of conveyances passing ownership down through time. This sequence is more commonly referred to as the

chain of title

Property rights can be divided into two classes, real and personal. Which of the following is an example of real property?

commercial building

Property rights created from marriage have a clear implication for real estate transactions. Which of the following marital property rights gives a spouse a one-half claim on all property acquired "from the fruits of the marriage"?

community property

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

condemnation

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?

covenant of seizin

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?

delivery

At the death of a property owner, property will convey either in accordance with a will or without a will. If a will dictates the distribution of the decedent's real property, the property is said to be

devised

The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called

discounting

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

eminent domain

Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by different individuals. Interests in real property that include possessions are referred to as

estates

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

externalities

When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include

fences

Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered

heterogeneous

The investment-grade property market is typically targeted by all of the following groups of investors except

individual investors

Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as

investment-grade property

Which of the following would be considered a tangible asset?

land

One of the most important requirements of a land description is for it to be unambiguous. Which of the following methods of property description is the most unambiguous and is appropriate for use in legal documents?

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?

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

multiplier process

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

new urbanism

When a zoning ordinance is revised, some existing land uses then fall outside the new zoning classification. These land uses are referred to as

nonconforming uses

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

partnership

Which of the following models of urban form is characterized by radial corridors or wedges representing the pattern of residential land use in relation to the location of the central business district (CBD)?

sector model

It was not until the late 1960s that land use controls moved to the forefront of public interest, as the belief that the environment was an endless and costless resource was replaced with the notion that the world was a closed system with limited space, air, water, and other resources. Environmentalists coined which of the following terms to refer to this new point of view?

spaceship earth

Helping to constrain entry into real estate-related occupations, which of the following branches of government is directly involved in establishing rules and regulations for the licensing of professionals in the field of real estate?

state government

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

Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife created by marriage that protects each spouse from liens arising from either spouse alone?

tenancy by entirety

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

they apply only to tangible assets

When land use controls impose exceptional hardship and loss of value, a relief mechanism must be provided. This relief is referred to as a

variance

The type of deed offered by the grantor is communicated through a phrase such as "does herby grant, bargain, sell, and convey unto... ." This clause is referred to as the

words of conveyance