3. Which of the following is truelof an expense stop? A. the tenant pays expense
ID: 2787388 • Letter: 3
Question
3. Which of the following is truelof an expense stop? A. the tenant pays expenses up to the amount of the stop B. the owner pays expenses up to the amount of the stop C. the tenant stops paying expenses after a certain date D. the owner stops paying expenses after a certain date 4. Which if the following is not true of capitalization rates? A. it is equal to net operating income divided by transaction (sale) price B. it assures the property will be a good investment if purchased C. it is derived form comparable sales D. it is noted in equations as "RExplanation / Answer
Answer 3. B. the owner pays expense up to the amount of the stop
Expense stop is the amount above which the tenant has to pay all the expenses and this is used by the owner to protect themselves from over paying the expenses.
Answer 4. B. It assures the property will be a good investment if purchased
as the decision of investment depends after comparing 2 cap rates and the one calculated can be lower to other investment options cap rate
Answer 3. B. the owner pays expense up to the amount of the stop
Expense stop is the amount above which the tenant has to pay all the expenses and this is used by the owner to protect themselves from over paying the expenses.
Answer 4. B. It assures the property will be a good investment if purchased
as the decision of investment depends after comparing 2 cap rates and the one calculated can be lower to other investment options cap rate
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.