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IAAO 102 EXAM ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS|AGRADE
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IAAO 102 EXAM ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS|AGRADE
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IAAO 102 EXAM 2023 -2024 ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS|A GRADE A contract which calls for a fixed minimum base rent and a variable rent (overage rent) which is based on volume of business, sales, productivity, or use of the property, or use of the property by the tena nt. - ANSWER - Percentage lease Leases may or may not be in written form. This provides no security for the tenant or landlord. - ANSWER - Month to month - Short term The tenant is required to pay all or part of the operating expenses associated with the real estate. - ANSWER - Net lease The tenant pays some or all of the property expenses. - ANSWER - Single, double or triple net lease. Degrees between the the gross lea se - ANSWER - Single and double net leases May require specific expenses to be paid by either tenant or landlord. - ANSWER - Triple lease The landlord is required to pay all operating expenses associated with the real estate. - ANSWER - Gross lease When th is section appears in a lease, it will usually explain the extent of the work that the landlord is willing to do in the form of a building or improvement allowance. - ANSWER - Tenant improvements The amount of rent that a property should command in the ope n market. Also known as economic rent. - ANSWER - Market rent Is the rent the tenant is paying according to the lease in affect at the time of appraisal or analysis. - ANSWER - Contract rent The amount which contract rent exceeds market rent. - ANSWER - Excess rent The amount of rent received in accordance with the terms of a percentage clause in a percentage lease contract. - ANSWER - Percentage rent Occurs when market rent is greater than contract rent. - ANSWER - Deficit rent (leasehold rent or leasehold income) The lease base rent less rent concessions. Used as a common denominator to compare leases with different provisions. - ANSWER - Effective rent Includes the entire area of the building. - ANSWER - Gross leasable area (GLA) Includes only the floor a rea occupied by the tenant. - ANSWER - Net leasable area (NLA) What is the difference between gross leasable area and net leasable area? - ANSWER - Common area One of the three approaches to value in which the appraiser derives a value indication by converting benefits through ownership of income producing property is the _________ approach? - ANSWER - Income The economic principle of __________ states that value is created by the expectation of benefits to be derived in the future. - ANSWER - Anticipation The economic principle of _________ states that property's maximum value tends to be set by the lowest cost or price at which another property of equivalent uti lity can be acquired. - ANSWER - Substitution Competition among sellers may lead to an __________, which reduces prices and profits. - ANSWER - Oversupply Competition among buyers may lead to a _________, which increases prices and profits to sellers. - ANSWER - Shortage What rate reflects the return of the investment in the wasting asset? - ANSWER - Recapture What leverage is achieved when funds are vested in property, which has a higher rate of return than the cost of borrowed funds? - ANSWER - Positive Four most common methods of financing real estate are? - ANSWER - 1. Mortgage 2. Trust deed 3. Cash 4. Land contract (contract for deed) What is a junior mortgage? - ANSWER - Second mortgage What are the four types of mortgages classified according to repa yment provisions? - ANSWER - 1. Amortized 2. Straight 3. Reverse 4. Partially amortizedThe benefits of buying summaries with Stuvia:
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