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Real Estate 306 Exam 1 | Questions And Answers Latest {} A+ Graded | 100% Verified
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Real Estate 306 Exam 1 | Questions And Answers Latest {} A+ Graded | 100% Verified
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Real Estate 306 Exam 1 | Questions And Answers Latest {2024- 2025} A+Graded | 100% Verified
Real Estate - Land and any improvements on it. Can be thought of as a bundle of legal rights or a bundle
of assumptions.
Commercial Real Estate - Refers to income-producing properties as opposed to single-family homes,
which is referred to as residential real estate.
Asset - A useful or valuable thing such as real estate.
Asset Class - A grouping of a similar type of investment.
Tangible - Describes something that you can touch.
Illiquid - Buildings being difficult, or taking a long time to sell and transact.
Lease - A contract by which one party conveys the use of land or space in a building to another for a
specified time in return for periodic payment/rent.
Credit Tenant - A term used to describe a tenant's financial strength and thus the likelihood that they
will make payments.
Revenue - Income in the form of rent payments.
NIMBY - Not in my backyard, refers to pushback some developers receive from the neighboring
community.
YIMBY - Yes in my backyard, the neighboring community that supports development or density.
Capital - Money, typically in the form of debt or equity.
, Equity - Invested money that is typically not guaranteed, but results in more reward for the investor.
Also refers to the owner or group of owners in real estate.
Debt - Borrowed money that must be returned with a predetermined interest rate that is typically
guaranteed by the developer.
Return of Capital - Describes when the investor receives back the money that was originally invested.
Return on Capital - Describes additional money that the investor receives in excess of the original
capital.
Floor Area Ratio - A metric that varies based on zoning to determine how much total building square
footage can go on a specific site.
Zoning - A set of municipal ordinances or codes that focuses on allowable uses, site coverage, and
building site.
Setbacks - A specific distance any new buildings must be from the property lines as dictated by the
specific zoning for that site.
Building Code - A set of municipal ordinance or codes that focuses on occupancies, building loads,
materials, systems, and life safety.
Letter of Intent - A non-binding agreement between a buyer and seller that spells out the big picture
deal terms so the two parties can proceed in good faith to a purchase agreement.
Purchase and Sale Agreement - A binding agreement between a buyer and seller of real property.
Option to Purchase - An agreement that grants the buyer an option to buy the property if the option is
exercised during the due diligence period. The buyer typically pays a non-refundable payment for the
right, but not the obligation, to proceed with the sale.
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