Real Estate 306 Final Exam Questions
and Answers
market where tenants negotiate rent and other terms with property owners as their
managers is:
✓ ~~~ the user market
market in which required rates of return on available investment opportunities is:
✓ ~~~ the capital market
the actions of local, state and federal governments affect real estate values:
✓ ~~~ through user markets, capital markets and taxation
what portion of households own their house?
✓ ~~~ 2/3
which asset category has the highest market value?
✓ ~~~ non-gov't real estate
storm water drainage systems best described as:
✓ ~~~ improvements to the land
single largest asset category in portfolio of typical U.S. household?
✓ ~~~ housing
real estate markets differ from other asset classes in that they're:
, ✓ ~~~ -localized
-high transaction costs
-segmented
-heterogenous
which attribute of a home is most difficult to observe & value?
✓ ~~~ location attributes
rules to determine whether something is a fixture
✓ ~~~ intention of parties
manner of attachment
character of article/manner of adaption
relation of the parties
ownership/freehold estates:
✓ ~~~ indefinite in length, titled complete:
fee simple absolute
fee simple conditional
ordinary life estate & remainder
legal life estate
fee simple conditional
, ✓ ~~~ ownership subject to condition/trigger event
legal life estate
✓ ~~~ created by action of law, meant to protect families but creates problems
nonownership/nonfreehold/leasehold estates
✓ ~~~ limited in time, no right to disposition, not titled interests:
tenancy for years, periodic tenancy, tenancy at will, tenancy at sufferance
tenancy for years
✓ ~~~ must have written formal lease to be enforceable
periodic tenancy
✓ ~~~ no definite term at the start, oral & informal, length of period implied by payment
period, more risk
tenancy at will
✓ ~~~ agreement that tenant will stay beyond end of lease until they or landlord gives
notice
suits if building being sold or renovated in near future
tenancy at sufferance
✓ ~~~ tenant is supposed to leave but doesn't
not trespassing until landlord accepts a rental payment
nonpossessory interests
, ✓ ~~~ bundles of real property rights that don't include possession:
easements
restrictive covenants
liens
easement
✓ ~~~ right to use land for specific and limited purpose
easements appurtenant
✓ ~~~ servient parcel gives up benefit to dominant parcel, that benefit becomes permanent
& inseperable feature of both parcels
2 docs borrow must always create in a mortgage loan
✓ ~~~ note & deed of trust (mortgage)
note
✓ ~~~ defines exact terms & conditions of loan
actual interest charged/month on RE loans =
✓ ~~~ annual stated contract interest rate / 12 x the beginning of the month balance
ARM
✓ ~~~ mortgage w/ adjustable interest rate
index rate
and Answers
market where tenants negotiate rent and other terms with property owners as their
managers is:
✓ ~~~ the user market
market in which required rates of return on available investment opportunities is:
✓ ~~~ the capital market
the actions of local, state and federal governments affect real estate values:
✓ ~~~ through user markets, capital markets and taxation
what portion of households own their house?
✓ ~~~ 2/3
which asset category has the highest market value?
✓ ~~~ non-gov't real estate
storm water drainage systems best described as:
✓ ~~~ improvements to the land
single largest asset category in portfolio of typical U.S. household?
✓ ~~~ housing
real estate markets differ from other asset classes in that they're:
, ✓ ~~~ -localized
-high transaction costs
-segmented
-heterogenous
which attribute of a home is most difficult to observe & value?
✓ ~~~ location attributes
rules to determine whether something is a fixture
✓ ~~~ intention of parties
manner of attachment
character of article/manner of adaption
relation of the parties
ownership/freehold estates:
✓ ~~~ indefinite in length, titled complete:
fee simple absolute
fee simple conditional
ordinary life estate & remainder
legal life estate
fee simple conditional
, ✓ ~~~ ownership subject to condition/trigger event
legal life estate
✓ ~~~ created by action of law, meant to protect families but creates problems
nonownership/nonfreehold/leasehold estates
✓ ~~~ limited in time, no right to disposition, not titled interests:
tenancy for years, periodic tenancy, tenancy at will, tenancy at sufferance
tenancy for years
✓ ~~~ must have written formal lease to be enforceable
periodic tenancy
✓ ~~~ no definite term at the start, oral & informal, length of period implied by payment
period, more risk
tenancy at will
✓ ~~~ agreement that tenant will stay beyond end of lease until they or landlord gives
notice
suits if building being sold or renovated in near future
tenancy at sufferance
✓ ~~~ tenant is supposed to leave but doesn't
not trespassing until landlord accepts a rental payment
nonpossessory interests
, ✓ ~~~ bundles of real property rights that don't include possession:
easements
restrictive covenants
liens
easement
✓ ~~~ right to use land for specific and limited purpose
easements appurtenant
✓ ~~~ servient parcel gives up benefit to dominant parcel, that benefit becomes permanent
& inseperable feature of both parcels
2 docs borrow must always create in a mortgage loan
✓ ~~~ note & deed of trust (mortgage)
note
✓ ~~~ defines exact terms & conditions of loan
actual interest charged/month on RE loans =
✓ ~~~ annual stated contract interest rate / 12 x the beginning of the month balance
ARM
✓ ~~~ mortgage w/ adjustable interest rate
index rate
