Real Estate 306 Exam 2 Questions And Answers With Verified Solutions Graded A+
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Module
Real Estate 306
Institution
Real Estate 306
A document that shows where the funding for a commercial real estate project comes from and how
that capital is used - Sources & uses
A change in zoning from the current zoning on a specific parcel requiring municipal approvals -
Rezoning
A claim or legal right against assets that are typically...
Real Estate 306 Exam 2
A document that shows where the funding for a commercial real estate project comes from and how
that capital is used - Sources & uses
A change in zoning from the current zoning on a specific parcel requiring municipal approvals -
Rezoning
A claim or legal right against assets that are typically used as collateral to satisfy a debt - Lien
A collection of building and design requirements that architect includes with the construction drawings
that becomes part of the construction contract - Specifications
A committee made up of local elected officials and community members that review new developments
and vote on recommendations of approval to city council - Plan Commission
A cost category in the construction budget for items the general contractor is responsible for such as a
trailer, fencing, site superintendent, etc. - General Conditions
A debt-based security (similar to a bond) backed by the interest paid on loans for residences -
Residential Mortgage Backed Securities (RMBS)
A deviation from the allowed zoning requirements typically for hardship or physical limitations -
Zoning Variance
A calculation of the maximum amount of rental income that a landlord could generate from a property -
Gross Potential Rent
A document created by the general contractor to identify the scope of work with specific inclusions and
exclusions that the contract price is based that becomes part of the construction contract - Scope
of work document
, A document that the general contractor or subcontractor provides to the owner that indicated they have
been paid for the work they performed and releases any lien rights against the property for that work -
Lien Waiver
A drawing provided by a manufacturer of specific components of the building for approval by the design
team - Shop Drawings
A financial analysis used by developers and real estate investors to determine the financial feasibility of a
deal and potential outcomes given certain assumptions - Proforma
A flexible type of zoning that can help promote density and mixed uses, or if standard zoning does not
work well - Planned Unit Development (PUD)
A holdback on the payment for work completed by the contractor that is held until the project and any
punchlist items are completed - Retainage
A loan committee that consists of upper management of a lending institution with the authority to
approve loans that the initial loan officer does not have the authority to approve - Credit
Committee
A measure of return described as Cash Flow / Total equity - Return on equity (Cash on Cash)
A measure of return described as Cash Flow / Total Investment (i.e. debt + equity) - Return on
investment
A measure of return described as NOI / Loan Balance - Debt Yield
A measure of return described as Stabilized NOI / Total cost - Return on cost
A method of valuation used in appraisals based on the cost to construct or rebuild a functionally
equivalent building today - Cost approach
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