IAAO COURSE 102 (Test questions with errorless answers)

The Economic Principle of Anticipation correct answers states that value is created by the expectation of benefits to be derived in the future. Chattel correct answers A mortgage on personal property. Balloon payment correct answers A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage. Conventional mortgage correct answers A loan that is neither insured nor guaranteed by the federal government. Contract rent correct answers The actual rent paid in accordance with terms of a lease. Minimum base rent correct answers The fixed portion of rent under the terms of a percentage lease. Excess rent correct answers The amount which contract rent exceeds market/economic rent. Bad for tenant but good for landlord.....look at this in terms of the landlord! Overage rent correct answers The variable portion of the rent under the terms of a percentage lease. This is the rent over and above the minimum base rent. Typically based on a percentage of sales or revenue. Percentage lease correct answers A contract that requires a fixed minimum base rent and a variable rent (overage rent) based on volume of business, sales, productivity, or use of the property by the tenant. Gross lease correct answers A lease in which the landlord is required to pay all operating expenses associated with the real estate.