Exam (elaborations)
Real Estate 306 Final Exam | Questions And Answers Latest {} A+ Graded | 100% Verified
- Course
- Institution
Real Estate 306 Final Exam | Questions And Answers Latest {} A+ Graded | 100% Verified
[Show more]
Content preview
Real Estate 306 Final Exam | Questions And Answers Latest {2024- 2025} A+Graded | 100% Verified
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 - market determined interest rate "moving part" in ARM
most common index rates - 1. U.S. treasury constant maturity rate (1 yr in maturity)
2. cost-of-funds index (for depository lenders)
3. LIBOR (London Interbank Offering Rate- for income producing property)
margin - lender's "markup" determined by individual lender & varies with competitive conditions & with
risk of loan
-avg. industry margin stable around 275 Bps
-lower for home equity loans
rate caps - limits that restrict change to an ARM interest rate, typically binding for both increases &
decreases in index
1. periodic or
, 2. overall
periodic rate cap - limit from one change date to the next
overall rate cap - limit change over life of loan
teaser rate - temporarily reduced interest rate (most ARMs marked w/ it)
-may be a % pt or 2 below sum of index + margin
-usually applies for short time, like 1 yr
-cap could apply to only index + margin or also to teaser rate, depends on note
payment caps - some lenders offer ARM home loans w/ caps on payment instead of interest rate
-even if interest rate changes, payment caps at certain %
-enables lender to enjoy advantage of unconstrained interest rate adjustments while protecting borrow
against large payment changes
-gets complicated if interest charges increase more than payment cap will allow, b/c the unpaid interest
will be added to original balance, resulting in negative amortization
partially amortizing loan - may pay down partially over a certain number of yrs, but require additional
large payment w/ last scheduled payment
non-amortizing loan - require interest but no regular scheduled principal payment prior to last payment
fully amortizing loan - used for most mortgages, monthly level payment for certain number of yrs
term for amortization - determines payments & schedule of interest + principle payments
term to maturity - determines when entire remaining balance on loan must be paid in full
-often called balloon loan (dominant form of mortgage loan for income producing property)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller oneclass. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.48. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now