NC Post Licensing 303 Questions & answers 100% Correct!

Commercial purchase contract - ANSWERSvary widely, inspections or due diligent are key, no standard contract Commercial Due Diligence - ANSWERSFree look, no risk, determined by buyer and seller BPO-Broker Price Opinion Analysis - ANSWERSContains a market analysis and derives value from capitalization rates Capitalization formula - ANSWERSI/R*V Value=NOI/Rate Potential Gross Income - ANSWERSVacancy Collection losses Additional income Effective gross income - ANSWERSOperating expenses Net operating income - ANSWERSDebt service(mortgage), Capital expenditures reserves commissions Ground Lease - ANSWERSDirt owners dream, common arrangements, costals, lake, reservations, hong kong is the world's largest Common Ground Lease Provision - ANSWERSOften Allowed construction of a building typically in the lease get to deduct rent as business expenses Full-Service Lease - ANSWERSLease includes services, base rent + prorated expenses + utilities & services, lessor pays expenses, but they are shared among tenants, rent is usually higher than other leases, CAMs CAMs - ANSWERSCommon area maintenance charges shared by all tenants Landlord - ANSWERSLessor of the property; agents that have actual or apparent authority over the property Smoke & Carbon Monoxide Detectors - ANSWERSSmoke Mandatory, Carbon attached garage and fossil fuel appliances, landlord must install 10yr lithium batteries or hard wire; tenant replace batteries during the lease