REE 3043 REVIEW QUESTIONS WITH REVISED CORRECT ANSWERS
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Course
REE 3043
Institution
REE 3043
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...
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 nonrecurring expenses
is estimated by annualizing all the costs of periodically replacing the components of
improvement that depreciation faster than the building itself, such as carpeting -
Answer-True
Discount rates are the largest component of most capitalization rates - Answer-true
Chap 18 ...... Two Types of Property - Answer-1. Real Property (real estate, land
anything permanently attatched to it)
2. Personal Property (tangible, moveable...,even intangible)
Physical real property rights - Answer-surface rights, subsurface rights, air rights, public
fly over rights
Tests to determine fixtures - Answer-Intent Test
Annexation Test
Adaptation test
Relationship-of-the-parties test
Legal Rights of Real Estate Ownership - Answer-1. The right of exclusive possession
and control- control entry to property, collect damages from tresspasses
2. The right of quiet enjoyment- legal claim to their property without unfounded
disturbances, best title than anyone else
3. The right of disposition - transfer ownership however they see fit
Real Estate - Answer-Degree of legal interest a party has in real property
Estates in severalty - Answer-only one party owns real estate.
concurrent estates - Answer-more than one owner
, freehold estates - Answer-held for an indefinite period (perpetuity)
non freehold estate - Answer-have a known duration and do not involve an ownership
interest.
fee simple absolute (fee simple) - Answer-best title, no duration, own it in perpetuity
Joint tenancy - Answer-*right of surrvivorship
unity of time
unity of title
unity of possession
unity of interest
tenancy by the entities - Answer-basically a joint tenancy between husband and wife
if parties are truly husband and wife, the estate is implied
*must be married*
one spouse cannot do anything that affects the ownership of a tenancy by the entities
such as mortgage, will, or sell any portion of the spousal interest in a tenancy by the
entireties without the other spouses consent
tenancy in common - Answer-unequal interest
have seperate titles to property
have rights that began at different periods
have equal use of property
*for business partners
*does not have right of surrvivorship, goes to their heirs
Gov role in determing property rights - Answer-police power
taxation
eminent domain
escheat
escheat - Answer-the right of government to claim ownership to your property = No
heirs and goes to the state.
easements - Answer-right to use the land of another
Easement in gross - Answer-most comon form of easement. creates rights that run with
the user because the party granted the right must use the land for a specefic purpose
(utilities)
easement appurtenant - Answer-rights that run with the land
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