TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST
VERSIONS (VERSIONS A & B) ACTUAL EXAM 300 REAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)|ALREADY
GRADED A+
If a borrower fails to keep homeowners insurance of the collateral property, what
actions can the lender take? - ANSWER: Place Lender-aquired insurance on the
property and bill the borrower
Leases my be terminated by expiration, eviction or ______? - ANSWER: Mutual
Agreement
is a dynamic risk - ANSWER: Market Change
How many dwelling units does a commercial residential property have - ANSWER: 5
or more
the estate would need to be worth _____________ to be subject to estate tax. -
ANSWER: $11 million
With this arrangement, the developer preleases to a financially strong tenant to
build a structure to the tenant's specifications. This arrangement assures the tenant
that they will have the space they require when needed and it assures the
owner/builder that the space will be fully leased upon completion. - ANSWER: Build
to suit
Regional shopping center lot building size - ANSWER: 40-100 acres and average size
of 591825 sq ft
the ease with which an asset can be converted into cash - ANSWER: Liquidity
Formula used to calculate gross rental income for an office building - ANSWER:
Productive square feet x rental rate per square foot = gross rental rate
a REIT that earns income for its investors through rent collection or the sale of the
properties in their portfolio - ANSWER: Equity REIT
Income
capitalization technique; value is estimated
by dividing the net operating
income by the overall capitalization rate. Coverts a single years expected income into
a market value - ANSWER: Direct Capitalization Method
, When a land trust expires, the trustee must either extend the trust term or sell the
real estate and ______. - ANSWER: Give the proceeds to the beneficiary
the amount of money you have now - ANSWER: Present value
A legal action to compel a party to carry out the terms of a contract. - ANSWER:
Specific Performance
A lease in which the tenant or lessee is responsible for paying a portion of or all of
the common expenses related to real estate ownership, in addition to base rent. -
ANSWER: Triple Net Lease
lease in which the tenant pays some or all of the operating expenses of the property
in addition to rent - ANSWER: Net Lease
One that bases the amount of rent on a percentage of the sales generated in the
space. - ANSWER: Percentage Lease
Tenant pays rents, landlord pays all expenses of property; most common form of
residential lease - ANSWER: Gross lease
the relative amount of fixed and variable costs that make up a firm's total costs -
ANSWER: Operating Leverage
Calculation of the firms debts to a number of other factors, including assets, equity,
income and capital to arrive at a specific ratio. - ANSWER: Financial Leverage
allows investors to refinance repeatedly, generating tax free cash with which to
make additional investments - ANSWER: Tax Free Financing
Type of document, provided by the sponsor of a condominium, contains detailed
information on floor plans, estimated expenses, building materials ect... - ANSWER:
Offering Plan
Essential element of a valid Real Estate Contract - ANSWER: Legal Purpose
A means by which the seller passes possession but retains title to the property until
the total or a substantial portion of the purchase price is paid. Installment contract.
The two parties here are the vendor (owner) and the vendee (buyer). - ANSWER:
Contract for deed
Prices go down because there are too many homes on the market and too few
buyers. Supply and demand - ANSWER: competition
Two or more dwelling units - ANSWER: Multi-Family Residential
VERSIONS (VERSIONS A & B) ACTUAL EXAM 300 REAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)|ALREADY
GRADED A+
If a borrower fails to keep homeowners insurance of the collateral property, what
actions can the lender take? - ANSWER: Place Lender-aquired insurance on the
property and bill the borrower
Leases my be terminated by expiration, eviction or ______? - ANSWER: Mutual
Agreement
is a dynamic risk - ANSWER: Market Change
How many dwelling units does a commercial residential property have - ANSWER: 5
or more
the estate would need to be worth _____________ to be subject to estate tax. -
ANSWER: $11 million
With this arrangement, the developer preleases to a financially strong tenant to
build a structure to the tenant's specifications. This arrangement assures the tenant
that they will have the space they require when needed and it assures the
owner/builder that the space will be fully leased upon completion. - ANSWER: Build
to suit
Regional shopping center lot building size - ANSWER: 40-100 acres and average size
of 591825 sq ft
the ease with which an asset can be converted into cash - ANSWER: Liquidity
Formula used to calculate gross rental income for an office building - ANSWER:
Productive square feet x rental rate per square foot = gross rental rate
a REIT that earns income for its investors through rent collection or the sale of the
properties in their portfolio - ANSWER: Equity REIT
Income
capitalization technique; value is estimated
by dividing the net operating
income by the overall capitalization rate. Coverts a single years expected income into
a market value - ANSWER: Direct Capitalization Method
, When a land trust expires, the trustee must either extend the trust term or sell the
real estate and ______. - ANSWER: Give the proceeds to the beneficiary
the amount of money you have now - ANSWER: Present value
A legal action to compel a party to carry out the terms of a contract. - ANSWER:
Specific Performance
A lease in which the tenant or lessee is responsible for paying a portion of or all of
the common expenses related to real estate ownership, in addition to base rent. -
ANSWER: Triple Net Lease
lease in which the tenant pays some or all of the operating expenses of the property
in addition to rent - ANSWER: Net Lease
One that bases the amount of rent on a percentage of the sales generated in the
space. - ANSWER: Percentage Lease
Tenant pays rents, landlord pays all expenses of property; most common form of
residential lease - ANSWER: Gross lease
the relative amount of fixed and variable costs that make up a firm's total costs -
ANSWER: Operating Leverage
Calculation of the firms debts to a number of other factors, including assets, equity,
income and capital to arrive at a specific ratio. - ANSWER: Financial Leverage
allows investors to refinance repeatedly, generating tax free cash with which to
make additional investments - ANSWER: Tax Free Financing
Type of document, provided by the sponsor of a condominium, contains detailed
information on floor plans, estimated expenses, building materials ect... - ANSWER:
Offering Plan
Essential element of a valid Real Estate Contract - ANSWER: Legal Purpose
A means by which the seller passes possession but retains title to the property until
the total or a substantial portion of the purchase price is paid. Installment contract.
The two parties here are the vendor (owner) and the vendee (buyer). - ANSWER:
Contract for deed
Prices go down because there are too many homes on the market and too few
buyers. Supply and demand - ANSWER: competition
Two or more dwelling units - ANSWER: Multi-Family Residential
