TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS
(VERSIONS A & B) ACTUAL EXAM
Place Lender-aquired insurance on the property and bill the borrower - correct answerIf
a borrower fails to keep homeowners insurance of the collateral property, what actions
can the lender take?
Mutual Agreement - correct answerLeases my be terminated by expiration, eviction or
______?
Market Change - correct answeris a dynamic risk
5 or more - correct answerHow many dwelling units does a commercial residential
property have
$11 million - correct answerthe estate would need to be worth _____________ to be
subject to estate tax.
Build to suit - correct answerWith 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.
40-100 acres and average size of 591825 sq ft - correct answerRegional shopping
center lot building size
Liquidity - correct answerthe ease with which an asset can be converted into cash
Productive square feet x rental rate per square foot = gross rental rate - correct
answerFormula used to calculate gross rental income for an office building
Equity REIT - correct answera REIT that earns income for its investors through rent
collection or the sale of the properties in their portfolio
Direct Capitalization Method - correct answerIncome
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
Give the proceeds to the beneficiary - correct answerWhen a land trust expires, the
trustee must either extend the trust term or sell the real estate and ______.
Present value - correct answerthe amount of money you have now
Specific Performance - correct answerA legal action to compel a party to carry out the
terms of a contract.
, TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS
(VERSIONS A & B) ACTUAL EXAM
Triple Net Lease - correct answerA 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.
Net Lease - correct answerlease in which the tenant pays some or all of the operating
expenses of the property in addition to rent
Percentage Lease - correct answerOne that bases the amount of rent on a percentage
of the sales generated in the space.
Gross lease - correct answerTenant pays rents, landlord pays all expenses of property;
most common form of residential lease
Operating Leverage - correct answerthe relative amount of fixed and variable costs that
make up a firm's total costs
Financial Leverage - correct answerCalculation of the firms debts to a number of other
factors, including assets, equity, income and capital to arrive at a specific ratio.
Tax Free Financing - correct answerallows investors to refinance repeatedly, generating
tax free cash with which to make additional investments
Offering Plan - correct answerType of document, provided by the sponsor of a
condominium, contains detailed information on floor plans, estimated expenses, building
materials ect...
Legal Purpose - correct answerEssential element of a valid Real Estate Contract
Contract for deed - correct answerA 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).
competition - correct answerPrices go down because there are too many homes on the
market and too few buyers. Supply and demand
Multi-Family Residential - correct answerTwo or more dwelling units
Transfer of ownership before death and avoids probate - correct answerA living trust
differs from a testmentary trust in that a living trust is established to convey property as
well as to __________________________
It assures tenants they won't be evicted if they adhere to lease terms - correct
answerWhat is the purpose of the non disturbance clause in a lease.
(VERSIONS A & B) ACTUAL EXAM
Place Lender-aquired insurance on the property and bill the borrower - correct answerIf
a borrower fails to keep homeowners insurance of the collateral property, what actions
can the lender take?
Mutual Agreement - correct answerLeases my be terminated by expiration, eviction or
______?
Market Change - correct answeris a dynamic risk
5 or more - correct answerHow many dwelling units does a commercial residential
property have
$11 million - correct answerthe estate would need to be worth _____________ to be
subject to estate tax.
Build to suit - correct answerWith 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.
40-100 acres and average size of 591825 sq ft - correct answerRegional shopping
center lot building size
Liquidity - correct answerthe ease with which an asset can be converted into cash
Productive square feet x rental rate per square foot = gross rental rate - correct
answerFormula used to calculate gross rental income for an office building
Equity REIT - correct answera REIT that earns income for its investors through rent
collection or the sale of the properties in their portfolio
Direct Capitalization Method - correct answerIncome
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
Give the proceeds to the beneficiary - correct answerWhen a land trust expires, the
trustee must either extend the trust term or sell the real estate and ______.
Present value - correct answerthe amount of money you have now
Specific Performance - correct answerA legal action to compel a party to carry out the
terms of a contract.
, TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS
(VERSIONS A & B) ACTUAL EXAM
Triple Net Lease - correct answerA 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.
Net Lease - correct answerlease in which the tenant pays some or all of the operating
expenses of the property in addition to rent
Percentage Lease - correct answerOne that bases the amount of rent on a percentage
of the sales generated in the space.
Gross lease - correct answerTenant pays rents, landlord pays all expenses of property;
most common form of residential lease
Operating Leverage - correct answerthe relative amount of fixed and variable costs that
make up a firm's total costs
Financial Leverage - correct answerCalculation of the firms debts to a number of other
factors, including assets, equity, income and capital to arrive at a specific ratio.
Tax Free Financing - correct answerallows investors to refinance repeatedly, generating
tax free cash with which to make additional investments
Offering Plan - correct answerType of document, provided by the sponsor of a
condominium, contains detailed information on floor plans, estimated expenses, building
materials ect...
Legal Purpose - correct answerEssential element of a valid Real Estate Contract
Contract for deed - correct answerA 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).
competition - correct answerPrices go down because there are too many homes on the
market and too few buyers. Supply and demand
Multi-Family Residential - correct answerTwo or more dwelling units
Transfer of ownership before death and avoids probate - correct answerA living trust
differs from a testmentary trust in that a living trust is established to convey property as
well as to __________________________
It assures tenants they won't be evicted if they adhere to lease terms - correct
answerWhat is the purpose of the non disturbance clause in a lease.
