21. When a landowner leases unimproved land to a tenant for a term of 50 years,

Question

21. When a landowner leases unimproved land to a tenant for a term of 50 years, and the tenant agrees to erect a building on the land, the lease is usually called

A. an improvement lease

B. a triple net lease

C. a ground lease

D. a gross lease

22. A man operates a small store in a shopping center. Under the terms of lease, they landlord pays all operating expenses. The man pays a base rent of $1,000 per month, plus 15% of monthly gross pro?ts over $10,000. The man has a

A. variable lease

B. Gross lease.

C. net lease

D. percentage lease.

The characteristics of value include

A. popularity, location, price, and transferability

B. demand, utility, price, and transferability

C. demand, scarcity, price, and popularity

D. demand, utility, scarcity, and transferability

24. All of these are principal responsibilities of the property manager EXCEPT

A. preserving and/or increasing the value of the property

B. Generating income for the owners

C. forcibly removing tenants for nonpayment of rent.

D. Achieving the objectives of the owners

25. A broker is showing a house to a prospective buyer. He points out the rustic of the sagging front porch and refers to a weed-choked backyard as a delightful garden. The broker is engaging in

A. Puffing

B. fraud

C. intentional misrepresentation

D. negligent misrepresentations

26. A borrower defaulted on his mortgage loan, leaving an unpaid balance of $95,000. After receiving only $85,000 from the sale of the property, the lender will most likely ?le for a

A. de?ciency judgment

B- lis pendens

C. release deed

D. Satisfaction piece.

27. The decision whether to buy or rent should involve consideration of

A. the availability of a reverse mortgage

B. the terms of the security agreement

C. whether or not the property is located in a title theory state.

D. housing affordability and current mortgage interest rates

28. The principle of value that is the interaction of supply and demand is called

A. competition

B. anticipation

C. conformity

D. contribution

29. All of these are ways for a broker to charge for services EXCEPT

A. hourly rate

B. standard community rate

C. ?at fees

D. commission based on a percentage of the selling price

30. Which of these reports would a real estate salesperson most likely create and deliver a prospective seller?

A. An appraisal

B. A cost bene?t analysis

C. A comparative market analysis

Explanation / Answer

Question Answer Explaination Answer 21 Ground lease under ground lease the tenent make continuous improvement which includes erecting of building. These lease are normally for the period of more than 10 years Answer 22 Percentage lease Under this lease the tenent pays a fixed rental amount plus some percent of the gross revenue he generates from his business on that property Answer 23 demand, utility, scarcity, and transferability Value is the amount of goods and services for exchange of something. The four characterstics of value are DUST i.e demand, utility, scarcity and transferability. Answer 24 forcibly removing tenants for nonpayment of rent. A propery owner cannot forcibly remove the tenents for non payment of the rent. He can file a suit in case the tenent had not paid the rent for previous months or he is defauting the payments. Answer 25 negligent misrepresentation It is the false statement of fact which is made in order to make the person to enter into the contract. Answer 26 Deficiency judgement A deficiency judgement is filed when the foreclosure of sale of the mortgage does not produce sufficient fund to pay the mortgage loan. Answer 27 housing affordability and current mortgage interest rates It is the major factor considered to either rent or purchase the house. If the mortgage interest rates are less then the rent per month then purchasing the house is more beneficial then renting it. Answer 28 Competition it depends on the demand and supply of the similar homes in the same locality Answer 29 Hourly fees Broker cannot charge on hourly basis. He can be paid on flat rate, or the rate prevailing in the market or on percentage basis. But in real estate charging fee on hourly basis is not possible Answer 30 Comparative market analysis It is an estimate of the home's value compared to the other's home. This is the report which a sales man generates and give to the prespective seller to know if the house he wants to sell is priced correctly or not.

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