Ree 3043 test questions - Study guides, Class notes & Summaries

REE 3043 TEST QUESTIONS WITH UPDATED ANSWERS Purely free market solution to zoning problems - Answer-free rider problem - yes negative ext - yes inequities in bearing the costs to enforce positive zoning outcomes - yes zoning restrictions - no An important limitation to the use of private restrictions for controlling land uses is often: - Answer-That they may be too costly to enforce the authority to control and regulate land uses: - Answer-is generally vested in local jurisdictions ...

REE 3043 TEST QUESTIONS WITH COMPLETE SOLUTIONS GRADED A+ Investment Value Definition - Answer-Def: *The value of the property to a particular investor*. The price a particular investor (as opposed to the typical investor) is willing to pay, given the investor's unique tax situation, financing opportunities, required rate of return, and expectations of the property's future cash flows. Market Value Definition - Answer-Def: *Exact value.* The price a typical buyer would pay should the prop...

REE 3043 TEST QUESTIONS AND ANSWERS ALL CORRECT When existing loans are sold by originators to investors or from one investor to another, these transactions are the secondary mortgage market. - Answer Secondary mortgage market The value of money changes over time - Answer Time value of money Earning may not be there, could lose your principle, liquidity risk ( it is not easily converted into cash ) - Answer Financial risks Present value of your cash inflows minus the present valu...

Ree 3043 TEST QUESTIONS WITH CERTIFIED ANSWERS When existing loans are sold by originators to investors or from one investor to another, these transactions are the secondary mortgage market. - Answer-Secondary mortgage market The value of money changes over time - Answer-Time value of money Earning may not be there, could lose your principle, liquidity risk ( it is not easily converted into cash ) - Answer-Financial risks Present value of your cash inflows minus the present value of y...

REE 3043 TEST QUESTIONS WITH UPDATED ANSWERS Transactional - Conditions of Sale - Answer-Comparable property's sale price must be adjusted if any general condition represented in the sale was not typical of the market. Transactional - Financing Terms - Answer-Must be adjusted if it is sold below market or non market financing Transactional - Market conditions - Answer-must be adjusted if general market conditions have resulted in a change since its transaction date, resulting in overall ...

REE 3043 TEST 2 QUESTIONS WITH VERIFIED ANSWERS – UPDATED!!! Property taxes are the principal source of revenue for: - Answer-Local governments and school districts Zoning is an exercise of which type of general limitation on property rights? - Answer-zoning police Which of the following statements is (are) correct regarding the June 2005 ruling of the US Supreme Court on the Kelo vs. New London, Connecticut Eminent Domain Case. - Answer-all of these answers are correct The Federal g...

REE 3043 TEST QUESTIONS WITH COMPLETE SOLUTIONS GRADED A+ B. Market rent - Answer-The rent that can be obtained when leasing a property in an open and competitive market? a. contract rent b. market rent c. fair rent d. justifiable rent A. Periodic income and Appreciation - Answer-Income properties are purchased by investors who desire primarily to receive? a. periodic income and appreciation b. prestige and prominence in a community c. taxdeductions d. the locational benefits associated...

REE 3043 Chapter 4 Test Questions and Answers All Correct A traditional zoning ordinance includes all of the following except -minimum setback requirements. -minimum lot dimensions. -provisions for special use districts. -performance standards. - Answer Performance Standards Real estate taxes represent the largest single source of revenue for a large portion of local governments. Most property taxes are applied in relation to the value of the property, or in other words, they are - A...

REE 3043 Final Test Questions and Answers All Correct Since the issues in many transactions are similar, brokers often use standard preprinted contract forms. Generally, the best standard form contracts are those prepared and approved by which of the following parties? - Answer-Local Board of Realtors When contracts for the sale of real property are placed with with a dis interested third party for executing and closing, they are said to be place in: - Answer-Escrow If a seller defaults ...

REE 3043 REVIEW QUESTIONS WITH REVISED CORRECT ANSWERS Nonrecurring Expenses - Answer-Leasing commissions, tenant improvements, retenanting expenses A project's NOI is calculated by: - Answer-deducting all expenses and allowances from the property's effective gross income The capitalization rate found by dividing the NOI of a property by its selling price takes into account investor's future cash flows - Answer-true The allowance known as the reserve for replacements and other nonr...