Real Estate 306 Final Exam Q&A with 100% Accurate Solutions | 2024/2025
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Course
Real Estate
Institution
Real Estate
Real Estate 306 Final Exam Q&A with
100% Accurate Solutions | 2024/2025
Market where tenants negotiate rent and other terms with property owners
as their managers is: - the user market
market in which required rates of return on available investment
opportunities is: - the capital market
the ...
Market where tenants negotiate rent and other terms with property owners
as their managers is: - ✔✔the user market
market in which required rates of return on available investment
opportunities is: - ✔✔the capital market
the actions of local, state and federal governments affect real estate
values: - ✔✔through user markets, capital markets and taxation
what portion of households own their house? - ✔✔2/3
which asset category has the highest market value? - ✔✔non-gov't real
estate
storm water drainage systems best described as: - ✔✔improvements to the
land
single largest asset category in portfolio of typical U.S. household? -
✔✔housing
,real estate markets differ from other asset classes in that they're: - ✔✔-
localized
-high transaction costs
-segmented
-heterogenous
which attribute of a home is most difficult to observe & value? - ✔✔location
attributes
rules to determine whether something is a fixture - ✔✔intention of parties
manner of attachment
character of article/manner of adaption
relation of the parties
ownership/freehold estates: - ✔✔indefinite in length, titled complete:
fee simple absolute
fee simple conditional
ordinary life estate & remainder
legal life estate
fee simple conditional - ✔✔ownership subject to condition/trigger event
legal life estate - ✔✔created by action of law, meant to protect families but
creates problems
,nonownership/nonfreehold/leasehold estates - ✔✔limited in time, no right
to disposition, not titled interests:
tenancy for years, periodic tenancy, tenancy at will, tenancy at sufferance
tenancy for years - ✔✔must have written formal lease to be enforceable
periodic tenancy - ✔✔no definite term at the start, oral & informal, length of
period implied by payment period, more risk
tenancy at will - ✔✔agreement that tenant will stay beyond end of lease
until they or landlord gives notice
suits if building being sold or renovated in near future
tenancy at sufferance - ✔✔tenant is supposed to leave but doesn't
not trespassing until landlord accepts a rental payment
nonpossessory interests - ✔✔bundles of real property rights that don't
include possession:
easements
restrictive covenants
liens
easement - ✔✔right to use land for specific and limited purpose
, easements appurtenant - ✔✔servient parcel gives up benefit to dominant
parcel, that benefit becomes permanent & inseperable feature of both
parcels
2 docs borrow must always create in a mortgage loan - ✔✔note & deed of
trust (mortgage)
note - ✔✔defines exact terms & conditions of loan
actual interest charged/month on RE loans = - ✔✔annual stated contract
interest rate / 12 x the beginning of the month balance
ARM - ✔✔mortgage w/ adjustable interest rate
index rate - ✔✔market determined interest rate "moving part" in ARM
most common index rates - ✔✔1. U.S. treasury constant maturity rate (1 yr
in maturity)
2. cost-of-funds index (for depository lenders)
3. LIBOR (London Interbank Offering Rate- for income producing property)
margin - ✔✔lender's "markup" determined by individual lender & varies with
competitive conditions & with risk of loan
-avg. industry margin stable around 275 Bps
-lower for home equity loans
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