SAE investment

What's the maximum term of a grantor retained income trust?

10 years

Grady plans to develop a community shopping center. What size lot will he need?

10- to 40-acre

Ezra has filed a fair housing discrimination complaint against an investor. HUD is investigating. Within how many days of receiving the complaint does HUD have to respond?

100

Vacancy rates in existing brick-and-mortar stores are around ______.

14%

A property valued at $1 million is returning a net annual income of $85,000. What's its cap rate?

8.5%

Which of the following plexes would be considered commercial property?

A five-plex in a residential zone

Lizzie's on the hunt for an older, single-family house she can rehab and then put back on the market. If she has to rent the place for a while, so be it, but her ultimate goal is to sell the place for a profit. What type of investment opportunity is Lizzie considering?

A fixer-upper

What do you get when you add the purchase price to closing expenses and the cost of any improvements during the time of ownership, then subtract any depreciation taken?

Adjusted basis

All commercial leases should contain the conditions under which the lease can be terminated; the names and signatures of all parties; and ______.

Any additional information based on negotiations and specific situations

Martin placed all of his real estate investments in a trust, and the proceeds will be distributed through the trust to his son Nathan. In this situation, Nathan is the _______.

Beneficiary

What type of partnership requires one or more general partners?

Both general and limited partnerships

In terms of investment, liquidity means an investment ______.

Can easily be converted to cash

Dynamic and static risk are considered ________ risks.

Capital

More than half of foreign buyers come from which five countries?

China, Canada, Mexico, India, and the United Kingdom

In this type of corporation, stockholders, directors, and company officers are typically the same people.

Close

At the beginning of each month, Drew sits in front of his laptop with his spreadsheets and bank statements to ensure each tenant is paid up. He hates when the tenants are late, because then he has to go knocking on their doors, demanding payment. Which commercial property manager duty is Drew performing?

Collecting rent

When prices go down because there are too many homes on the market and too few buyers, what economic principle is at work?

Competition

Which of these principles of value is related to how a change to a portion of a property impacts the value as a whole?

Contribution

Tax credits for low-income housing are available to _______.

Developers and investors

Some investors start their investment in real estate by purchasing which type of plex?

Duplex

Which of the following statements about state fair housing laws is true?

Each state is responsible for establishing and implementing its own fair-housing regulations.

What is a tax on your right to transfer property at your death called?

Estate tax

The risk that is directly related to leverage is called ______ risk.

Financial

Cooperative shareholders under a condop structure have ______.

Flexibility in selling and subletting, similar to that of condominium owners

Robbie's lender notified him of an impending foreclosure, and told Robbie that his property will be sold at public auction. After the auction occurred, he receives a notice of eviction for which the lender had to petition a court. What does this describe?

Foreclosure by advertisement

What's the name of the tax program that requires a withholding of a portion of the gross purchase price when foreign owners of real estate in the U.S. sell that property?

Foreign Investment in Real Estate Property Tax Act (FIRPTA)

Two essential elements of a deed are the ______.

Grantor's signature and conveyance clause

Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have?

Gross lease

Brandon is interested in purchasing a piece of property, but before doing so, he'd like to verify the accuracy of the legal description. Which of these options will accomplish this?

Having a survey conducted

Arnold plans to open a brokerage. What might make him select a sole proprietorship legal structure?

He wants control over branding.

Under which type of ownership arrangement can buyers purchase condominiums?

In severalty, in joint tenancy, in tenants in common, or tenants by the entirety

Amanda wants to know how long, on average, homes are staying on the market before they sell. What market indicator can give her this information?

Inventory rates

Carmine buys unimproved land and develops it in stages, selling it off as it's improved. Carmine is a _______.

Land banker

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

Landlord responsibilities and tenant relationships

Which type of property appeals more to developers of commercial properties and subdivisions?

Large, flat properties near town

Which of the following statements describes an on-site residential property manager?

Manages the day-to-day operations of a single property

Penelope just finished development of her new office building investment. She's ready to let prospective tenants know that her offices are ready to be let, but she's not sure of the best way to go about it. What should her next step be?

Market the office space

Who might be impacted by the expiration of abatements?

New buyers

A(n) ______ budget helps property managers maximize profitability and avoid unforeseen major expenses and repairs.

Operating

Byron is an environmental engineer working for Smith Environmental Services, Inc. He's currently working on a site assessment for an old hospital. Byron just sent soil and water samples to the lab that Smith uses for all of its testing. Which phase of the assessment process is Byron currently in?

Phase II

Before a purchase contract can be signed for land that is being sold across state lines, what must developers provide to buyers?

Property report

If a landlord removes the tenant's right of _______, the tenant can claim constructive eviction and vacate the property with no further financial responsibility to the landlord.

Quiet enjoyment

What's an easy way to remember the relationship between capitalization rate and risk?

Rate and risk go together.

Samuel is selling a 99-lot subdivision across state lines. His rival, Max, has a 123-lot subdivision that he's selling across state lines. What must Max do that Samuel doesn't have to do?

Register the project with the Consumer Financial Protection Bureau.

Cooperative owners are actually called ______.

Shareholders

Ray is in a bit of a predicament. He owes more on his mortgage than his property is worth, but can no longer afford the payments. He receives permission from his lender to sell the property for less than what he owes. What is this an example of?

Short sale

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

When both supply and demand increase, what does price do?

Stays the same

What do mortgage bankers prefer to do with loans after they've been made?

Stick with them for the life of the loan.

Offerings for promotional land sales must include ________.

Tax liabilities, basis for guarantees, information on public transportation, terrain details, proposed and existing improvements, and any issues with terrain

Billie is a residential property manager. Her primary obligation is to _______.

The building owner

The owner's covenants section of the property management agreement between manager Fred Baines and owner Lilian James contains three key pieces of information. First, Fred is named as the person responsible for managing the building. Secondly, Lillian is identified as the property's legal owner. What's the third key piece of information?

The fact that the owner is not facing foreclosure

Who or which entity pays the PILOT fee for federal government-owned land?

The federal government

Bonnie has a mortgage on her investment property, but she allows the homeowners insurance to lapse. Which of these is a possible consequence of this action?

The lender can place Bonnie's loan in default.

Which of the following is a true statement about when a promissory note is sold?

The promissory note is endorsed to the new owner of the loan.

Nadia wants to invest in a neighborhood shopping center. What size trade area can she plan to service?

Three-mile

A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ______.

Transfer ownership before death and avoid probate

Which one of the following property features could contaminate the soil?

Underground storage tanks

When do borrowers tend to go with a private loan company?

When they can't secure financing through traditional means

Which of the following statements about non-compete clauses and neighborhood shopping center leases is true?

With a non-compete clause, the property manager or landlord agrees not to lease to a business that competes with the current tenant.