IAAO 102 QUIZ 1 & 2 GLL Questions And
Correct Answers (Verified Answers) 2026
Is the process used to convert income into an estimate of value - CORRECT ANSWER -
Capitalization
In straight line capitalization ______________________________ is received in equal amounts
during the economic life of the improvement. - CORRECT ANSWER -Recapture
a loan secured by real property featuring an interest rate that is constant for the term of the loan
is referred to as a/an - CORRECT ANSWER -fixed rate mortgage
the underlying principle providing the basis of the income capitalization approach is -
CORRECT ANSWER -anticipation
the basic equation used in the income approach to value is - CORRECT ANSWER -
income/rate=value
requires that in addition to the rent, the landlord must pay maintenance, utilities, insurance and
taxes - CORRECT ANSWER -gross lease
when market rent exceeds contract rent, the difference is known as - CORRECT ANSWER -
deficit rent
rental income that a property would most probably command in the open market - CORRECT
ANSWER -market rent
the anticipated income from all operations of the property adjusted for vacancy and collection
losses, and misc. income is called: - CORRECT ANSWER -effective gross income (EGI)
Correct Answers (Verified Answers) 2026
Is the process used to convert income into an estimate of value - CORRECT ANSWER -
Capitalization
In straight line capitalization ______________________________ is received in equal amounts
during the economic life of the improvement. - CORRECT ANSWER -Recapture
a loan secured by real property featuring an interest rate that is constant for the term of the loan
is referred to as a/an - CORRECT ANSWER -fixed rate mortgage
the underlying principle providing the basis of the income capitalization approach is -
CORRECT ANSWER -anticipation
the basic equation used in the income approach to value is - CORRECT ANSWER -
income/rate=value
requires that in addition to the rent, the landlord must pay maintenance, utilities, insurance and
taxes - CORRECT ANSWER -gross lease
when market rent exceeds contract rent, the difference is known as - CORRECT ANSWER -
deficit rent
rental income that a property would most probably command in the open market - CORRECT
ANSWER -market rent
the anticipated income from all operations of the property adjusted for vacancy and collection
losses, and misc. income is called: - CORRECT ANSWER -effective gross income (EGI)
