REAL 4000 Uga Exam Questions With
Correct Answers
Property - answeranything that can be owned or possessed
tangible assets - answerphysical things, such as automobiles, clothing, land, or buildings
intangible assets - answernonphysical things which include contractual rights (e.g., mortgage
an...
Property - answer✔✔anything that can be owned or possessed
tangible assets - answer✔✔physical things, such as automobiles, clothing, land, or buildings
intangible assets - answer✔✔nonphysical things which include contractual rights (e.g., mortgage
and lease agreements), financial claims (e.g., stocks and bonds), interests, patents, or trademarks
how is the term "real estate" used? - answer✔✔1. used to identify tangible assets of
land/buildings
2. used to denote the bundle of rights associated w/ ownership of assets
3. used in reference to the business of real estate
improvements on land vs improvements to land - answer✔✔ON land - fixed structures such as
buildings, walls etc
TO land - include components necessary to make the land suitable to be used such as
infrastructure
land - answer✔✔- often used to refer to a building site, lot, etc. and not just land
raw land - answer✔✔land that does NOT include structures or any improvements
real property - answer✔✔rights associated with ownership of land and all permanent attachments
to land.
*used interchangeably with real estate
personal property - answer✔✔objects that are moveable and not permanently attached to the
land/structure, including furniture and tenant fixtures that are often purchased along w/ real
property acquisitions.
capital market: equity interests - answer✔✔owners of the real estate
- these people get their ROI through rent, price appreciation, etc.
capital market: debt interests - answer✔✔the lenders
- hold claims to interest on the borrowed funds that people use to invest, etc.
capitalization rate - answer✔✔ratio of a property's annual net income from rental operations to
it's value
txtbk def: the percentage that is obtained when the income produced by a property (or a specified
interest in a property) is divided by the value or sale price of the property (or the specified
interest in the property).
role of government in real estate - answer✔✔- local govt has the most influence
- state govt has the least effect
- national govt also has significant impact
how does the national government influence real estate? - answer✔✔through income tax and
housing subsidy programs
how is RE unique? - answer✔✔- heterogeneous: each property is unique
- immobility
*b/c of these, the RE market is illiquid, localized, and highly segmented
institutional-grade real estate - answer✔✔Larger commercial properties, usually valued over $10
million, targeted by institutional investors, such as pension funds and foreign investors. These
investments are generally located in the 50 to 60 largest U.S. metropolitan areas.
property rights - answer✔✔1. prevent other people from using your property
2. enjoy the use/benefit of the property
3. dispose of the property as you see fit (w/o causing others harm)
things that make up real property - answer✔✔1. rights to air space above the land
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