Final Exam- BCOR 300 WVU

1) The primary difference between a secured loan and an unsecured loan is_____

Unsecured loan is not backed by a lien or encumbrance on a specific asset

Secured loan the property beinh purchased is pledged as collateral for debt and lien or encumbrance is created on the title of the property.

2) In most cases real estate is purchased by means of______

Secured loans, mortgage

3) Which term is defined as the possibility of loss resulting from not being able to convert an asset into cash quickly should the need arise?

Liquidity Risk

4) the concept of compound interest refers to the process of ______

During any given period interest is earned not only on the original investment but also on the interest previously earned.

5) amortization is the ________

The process of gradually retiring a loan or other asset; also the requirement that a nonconforming use be discontinued after a stated period. (To kill of slowly)

6) as an alternative to the fixed rate mortgage, borrowers can often obtain an adjustable rate mortgage, which has an initial interest rate below that of a fixed rate loans. Which statement best explains rate difference?

Lenders accept a lower initial rate because the borrower is a better credit risk

7)If payments are made monthly instead of annually on a fully amortized fixed rate loan, the total amount of interest paid over the full term of the loan will be______

Total interest paid decreases

8) which term refers to the process of spreading risk exposure over different investment opportunities?

Diversification

9) the internal rate of return is that discount rate at which the____

Present value of future cash flows is exactly equal to initial investment

10) real estate refers to _____

Land and structures attached to land

11) ownership interests in real property are often described as____

Estates in land

12) the most crucial test used to determine whether an item is a fixture is the ______

Test of intent of the parties- written agreement that states clearly which items are to be considered part of the real estate and are considered personal property

13) the fullest and most complete estate in the land is_______

Fee simple absolute estates

14) when a landlord and a tenant enter an agreement for a specified term they have created a______

Tenancy for a stated period

15) a claim on a property as security for debt or other obligation is known as _________

A lien

16) the owner of the property being encroached upon has the right to force removal of the encroachment, if that owner fails to enforce removal, the other party may claim the legal right to encroaching by_________

Adverse possession or obtain a prescriptive easement

17) the lender in a mortgage arrangement is known as_____

A mortgagee

18) suppose you are considering buying an existing home in a fully developed neighborhood, and discover that the neighbors privacy fence is located on the property you are considering buying. This situation best describes_____

An encroachment

19) governmental powers over private property rights include_____

Eminent domain

Taxation

Police Power

Escheat

20) inverse condemnation occurs when____

Land owners seeks to enforce the government to purchase property

21) zoning by governmental entities is best described as____

The division of land based on use: Residential, commercial, industrial, agricultural

22) a legal document used to transfer ownership of rights of real estate from one party to another is _____

A deed

23) from the grantees perspective which type of deed offers the most protection?

General warranty dead

24) the current owner of a parcel of real estate will most likely be listed in the public record system as what?

A grantee

25) in addition to the standard requirements for a contract to be valid, the statute of fraud requires contracts involving real estate to ______

To be in writing

26) which is not a required element of a valid real estate contract?

Acknowledgement?

27) the legal right to ownership of land is demonstrated in the ________

Deed

28) suppose you want to secure the right to purchase a particular parcel of vacant land on a specified date in the future at a fixed price

Option to buy contract

29) valid real estate leases do not require____

A description of the property

30) like all contracts when a lease is delivered and accepted it becomes_______

Valid

31) which of the following is generally not a legitimate reason for the landlord to enter the property without permission?

Rearranging furniture

32) in the income approach which is not capitalized to obtain an estimate value____

NOI

33) what term refers to a primary duty of a property manager is also described as the most arduous tasks they will face___

Collecting rent

34) the corporate real estate asset manager is usually responsible for ______

All of the above

35) in property management the agency relationship exists between the owner of the property and the

Property manager

36) the most desired type of housing in America is

Single detached family

37) the _______ rate is the measure of how quickly or slowly newly constructed residences are being sold upon completion.

Absorption

38) the attached row house is a type of dwelling on its own fee simple lot that shares_____

Common walls

39) resorts/ hotels mostly cater to who?

Tourists

40) the most important consideration of a shopping center site is?

Location and access

41) what type of tenants are expected to attract shoppers to the shopping center and benefit other tenants?

Anchor

42)office buildings in a market that generate the highest rents per square ft are called?

Class A

43) in a space market with an upward sloping supply function an increase in demand for space would be met with_____

Increase in equilibrium price or rent

44) the percentage of the total amount of space in a market that is unoccupied at any given time is called____

Vacancy

45) which term refers to industries that bring income into a region from beyond its borders?m

Economic base

46) although there are exceptions the primary reason that people live in the communities that they do is because_____

Employment opportunities

47) the AXIL model of of urban growth results in a city that is_____

Starshaped

48) which of these makes owning a home advantageous vs renting?

Inflation

49) which of these is excluded from consideration when estimating a prospective borrowers income for mortgage qualifications?

Inheritance

50) when buying a home its a good rule to buy one that____

Appreciates in value 30/30/30 rule