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Unit 8 – Quiz

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  1. Current
  2. Review
  3. Answered
  4. Correct
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  1. Question 1 of 96
    1. Question

    Which of the following is an area of Real Estate specialization?

    Correct
    Incorrect
  2. Question 2 of 96
    2. Question

    Which of the following trends impacts the real estate industry?

    Correct
    Incorrect
  3. Question 3 of 96
    3. Question

    What are the benefits of including real estate in a portfolio?

    Correct
    Incorrect
  4. Question 4 of 96
    4. Question

    Which of the following is not one of the forces that influences the real estate market?

    Correct
    Incorrect
  5. Question 5 of 96
    5. Question

    Who is responsible to Verify, authenticate, certify or attest the execution of any legal instrument?

    Correct
    Incorrect
  6. Question 6 of 96
    6. Question

    Which of the following represents the real estate life-cycle correctly?

    Correct
    Incorrect
  7. Question 7 of 96
    7. Question

    Which of the following is NOT one of the forces that influences the real estate market?

    Correct
    Incorrect
  8. Question 8 of 96
    8. Question

    Which of the following is NOT a member of organized real estate?

    Correct
    Incorrect
  9. Question 9 of 96
    9. Question

    Base year of BSE Realty index is

    Correct
    Incorrect
  10. Question 10 of 96
    10. Question

    Which of the following is the umbrella organization for the organized real estate developers and builders in India?

    Correct
    Incorrect
  11. Question 11 of 96
    11. Question

    NHB Residex and CNX Realty Index are

    Correct
    Incorrect
  12. Question 12 of 96
    12. Question

    Which of the following is NOT one of the geographical references used to describe unsubdivided land?

    Correct
    Incorrect
  13. Question 13 of 96
    13. Question

    Which of the following best defines real estate?

    Correct
    Incorrect
  14. Question 14 of 96
    14. Question

    The residual income from real estate available to land is representative of the principle of

    Correct
    Incorrect
  15. Question 15 of 96
    15. Question

    Which is a loan given for implementing repair works and renovations in a home that has already been purchased by the buyer?

    Correct
    Incorrect
  16. Question 16 of 96
    16. Question

    What are investments that occupy a middle position in the capital stack, as a subordinated debt or preferred equity position?

    Correct
    Incorrect
  17. Question 17 of 96
    17. Question

    Which one of the following is not a characteristic of real estate market?

    Correct
    Incorrect
  18. Question 18 of 96
    18. Question

    This relates to information that is used directly in the analysis of the subject property and this is

    Correct
    Incorrect
  19. Question 19 of 96
    19. Question

    The criteria that can be applied for analysis of the highest and best use of property includes

    Correct
    Incorrect
  20. Question 20 of 96
    20. Question

    A property’s greatest potential market value is limited by the market value of the other, similar properties. This principle is known asA property’s greatest potential market value is limited by the market value of the other, similar properties. This principle is known as

    Correct
    Incorrect
  21. Question 21 of 96
    21. Question

    A metes-and -bounds legal description

    Correct
    Incorrect
  22. Question 22 of 96
    22. Question

    Which amongst the following approaches of valuation, involves accrued depreciation that is accounted for when determining the current value?

    Correct
    Incorrect
  23. Question 23 of 96
    23. Question

    Which of the following statements about property value is not true?

    Correct
    Incorrect
  24. Question 24 of 96
    24. Question

    When estimating the value for a particular piece of property, an appraiser will not investigate?

    Correct
    Incorrect
  25. Question 25 of 96
    25. Question

    An appraisal is

    Correct
    Incorrect
  26. Question 26 of 96
    26. Question

    What is the name of the lender in a three-party security instrument that hypothecates real estate?

    Correct
    Incorrect
  27. Question 27 of 96
    27. Question

    In the case of ________ the rate of interest varies according to market movements.

    Correct
    Incorrect
  28. Question 28 of 96
    28. Question

    Factors determining the value of real estate include

    Correct
    Incorrect
  29. Question 29 of 96
    29. Question

    If the economic life of a property is 50 years, the annual depreciation rate is

    Correct
    Incorrect
  30. Question 30 of 96
    30. Question

    Which is the most common form of Mezzanine Financing?

    Correct
    Incorrect
  31. Question 31 of 96
    31. Question

    For a real estate construction company, which of the following are not part of Profit and Loss Statement?

    Correct
    Incorrect
  32. Question 32 of 96
    32. Question

    Which trade like stocks and own a portfolio of underlying real estate or real estate mortgages?

    Correct
    Incorrect
  33. Question 33 of 96
    33. Question

    The borrower stands to gain in a rising interest rate scenario in the case of

    Correct
    Incorrect
  34. Question 34 of 96
    34. Question

    Various forms of holding Real assets include

    Correct
    Incorrect
  35. Question 35 of 96
    35. Question

    Which of the following is not a type of REIT?

    Correct
    Incorrect
  36. Question 36 of 96
    36. Question

    Which of the following factors influence real estate valuation?

    Correct
    Incorrect
  37. Question 37 of 96
    37. Question

    Some of the characteristics that make Real Estate unique as compared to other investment alternatives include

    Correct
    Incorrect
  38. Question 38 of 96
    38. Question

    Real investments include

    Correct
    Incorrect
  39. Question 39 of 96
    39. Question

    In the Discounted Cash Flow (DCF) valuation procedure

    Correct
    Incorrect
  40. Question 40 of 96
    40. Question

    The two major characteristics of real estate that affects it’s value

    Correct
    Incorrect
  41. Question 41 of 96
    41. Question

    When calculating income from a let out house property, deduction on interest on borrowed capital is applicable U/s

    Correct
    Incorrect
  42. Question 42 of 96
    42. Question

    The primary function of the Real Estate brokerage industry is to

    Correct
    Incorrect
  43. Question 43 of 96
    43. Question

    What is the relationship between foreign direct investment (FDI) and multinational enterprises (MNEs)?

    Correct
    Incorrect
  44. Question 44 of 96
    44. Question

    Value of the leased fee estate is equal to

    Correct
    Incorrect
  45. Question 45 of 96
    45. Question

    How is land different than other property assets?

    Correct
    Incorrect
  46. Question 46 of 96
    46. Question

    If a party is concerned about his or her ownership rights in a parcel of real property, what would be the best course of action?

    Correct
    Incorrect
  47. Question 47 of 96
    47. Question

    When older structures are revitalized, with rehabilitation and renovation occurring, the area is said to be undergoing

    Correct
    Incorrect
  48. Question 48 of 96
    48. Question

    This principle observes that consistency in ownership of land and zoning or usage, tends to maximize value. This principal is

    Correct
    Incorrect
  49. Question 49 of 96
    49. Question

    Which of the following is NOT applicable to salesperson compensation?

    Correct
    Incorrect
  50. Question 50 of 96
    50. Question

    What is the principal benchmark used to represent indirect investment in real estate. It is a real time market-cap weighted index of all REITs actively traded on the New York Stock Exchange and American Stock Exchange.

    Correct
    Incorrect
  51. Question 51 of 96
    51. Question

    For a company to get selected in the CNX realty index , the company should have an investable weight factor (IWF) of at least

    Correct
    Incorrect
  52. Question 52 of 96
    52. Question

    To which of the following does real property refer?
    A. The Land itself
    B. The Rights of Ownership
    C. Common Law
    D. Land Titles Registry

    Correct
    Incorrect
  53. Question 53 of 96
    53. Question

    What is generally a type of subordinate debt financing that provides financing between the senior loan and the equity in a venture or project?

    Correct
    Incorrect
  54. Question 54 of 96
    54. Question

    Which of the following are true about Reverse Mortgage?
    I) It is also called lifetime mortgage
    II) It is used to release the home equity in the property as one-time payment or multiple installments

    Correct
    Incorrect
  55. Question 55 of 96
    55. Question

    Which of the following terms refers to the purchase of land as well as the actual property?

    Correct
    Incorrect
  56. Question 56 of 96
    56. Question

    Identify the form of insurance that protects the lender against failure to pay the mortgage?

    Correct
    Incorrect
  57. Question 57 of 96
    57. Question

    The most important difference between Financial assets and Real assets include

    Correct
    Incorrect
  58. Question 58 of 96
    58. Question

    If a person has complete control over their property, and the ownership in the property is not defeasible, what interest does the person have in the property?

    Correct
    Incorrect
  59. Question 59 of 96
    59. Question

    What is the difference between a specific lien and a general lien?

    Correct
    Incorrect
  60. Question 60 of 96
    60. Question

    The legal act of transferring ownership, or the intention to have a deed be operative and effective is manifested by _____________ of the deed.

    Correct
    Incorrect
  61. Question 61 of 96
    61. Question

    Which of the following represents an arm’s length transaction and must be included from consideration in an appraisal?

    Correct
    Incorrect
  62. Question 62 of 96
    62. Question

    The principle of value that states that two adjacent parcels of land combined into one larger parcel could have a greater value than the two parcels valued separately is called

    Correct
    Incorrect
  63. Question 63 of 96
    63. Question

    One complication that appraisers may face is the variety of lease types that may be available for a particular property type. Which of the following statements best describes a “graduated” or step-up lease?

    Correct
    Incorrect
  64. Question 64 of 96
    64. Question

    The going-in cap rate or overall capitalization rate is a measure of the relationship between a property’s current income stream and its price or value. Which of the following statements regarding cap rates is true?

    Correct
    Incorrect
  65. Question 65 of 96
    65. Question

    Real Estate as an investment is fairly________, thus resulting in ___________ transaction costs than other types of investments.

    Correct
    Incorrect
  66. Question 66 of 96
    66. Question

    Which of the following are correct about section 24, when applied to calculate income from a let out house property?

    Correct
    Incorrect
  67. Question 67 of 96
    67. Question

    A real estate brokerage firm specializes in property management. Which one of the following property management activities is illegal?

    Correct
    Incorrect
  68. Question 68 of 96
    68. Question

    Which of the following REIT’s (Real Estate Investment Trust) refers to a corporate entity that is engaged in the acquisition, management, renovation, building and sale of real estate. They are preferred by professional money managers because they are likely to offer higher rewards?

    Correct
    Incorrect
  69. Question 69 of 96
    69. Question

    The annual net income of a REIT (Real Estate Investment Trust)

    Correct
    Incorrect
  70. Question 70 of 96
    70. Question

    Which one of the following type of REIT specializes in apartment buildings and/or other residential properties leased to individuals?

    Correct
    Incorrect
  71. Question 71 of 96
    71. Question

    Which one of the following REIT is a company that specializes in underwriting, acquiring and holding debt obligations guaranteed by real estate properties?

    Correct
    Incorrect
  72. Question 72 of 96
    72. Question

    Adding Real Estate in an investor’s portfolio
    I) Hedges inflation
    II) Diversifies portfolio
    III) May increase risk adjusted performance
    IV) Guarantees enhanced returns
    Choose the incorrect option from above

    Correct
    Incorrect
  73. Question 73 of 96
    73. Question

    What is the relationship between the ex ante return on an investment and the price for the asset paid by the investor?

    Correct
    Incorrect
  74. Question 74 of 96
    74. Question

    The means by which individual hold their claims on real assets in a well developed economy are

    Correct
    Incorrect
  75. Question 75 of 96
    75. Question

    Which of the following statements is not true about Real Estate brokers?

    Correct
    Incorrect
  76. Question 76 of 96
    76. Question

    A type of mortgage in which the lender makes periodic payments to the borrow, who is required to be age 62 or older in the FHA program, is called

    Correct
    Incorrect
  77. Question 77 of 96
    77. Question

    A seller took 10% down in cash and provided 90% of the sale price as a first mortgage. The best way to describe the mortgage is

    Correct
    Incorrect
  78. Question 78 of 96
    78. Question

    Real estate market characteristic that that denotes that every piece of real estate is unique, in terms of its location, in terms of the building, and in terms of its financing?

    Correct
    Incorrect
  79. Question 79 of 96
    79. Question

    Salesperson Ward sells a listing of a competing brokerage with the commission payable being divided evenly between the listing and selling brokerages. If Ward is on a 55/45 split with her brokerage, how much would she receive if the property sold at $175,000 with a commission rate of 6%?

    Correct
    Incorrect
  80. Question 80 of 96
    80. Question

    Salesperson Smith received $12,379.50 as 90% of ABC Realty Inc.’s 7% commission. What was the sale price of the house?

    Correct
    Incorrect
  81. Question 81 of 96
    81. Question

    The following data is available for a piece of property
    Asking price: Rs.800000/-
    Net Income : Rs.80,000/-
    Market Yield: 11%
    What should be the value of the property according to capitalization approach?

    Correct
    Incorrect
  82. Question 82 of 96
    82. Question

    Which of the following are not true about Equity Financing?
    I. It gives the investor a share in the property because the money he lends to the company gets added to its capital
    II. Profit sharing with the investors is one of the popular ways of repayment for equity finances
    III. Lack of flexibility, transparency, and simplicity limits the appeal of equity financing
    IV. It is one of the most difficult methods of financing investments in the real estate

    Correct
    Incorrect
  83. Question 83 of 96
    83. Question

    The owner of a large parcel of real estate legally divided it into two smaller parcels. Parcel North was directly to the north of Parcel South. The only road in the area bordered Parcel South. The owner intended to keep Parcel North, and wanted to prevent it from becoming landlocked. In the deed to the buyer of Parcel South, the owner reserved a non-exclusive easement for ingress and egress purposes over the westerly 8 feet of Parcel South. After both parcels were sold to two new owners, the new owner of Parcel South fenced in the entire parcel, making ingress and egress over the westerly 8 feet impossible for the new owner of Parcel North. In a lawsuit between the new owner of Parcel North and the new owner of Parcel South, who will most likely win?

    Correct
    Incorrect
  84. Question 84 of 96
    84. Question

    Ulyanna and Daniel own two contiguous properties situated on the shores of a fast-moving river. Ulyanna’s parcel is situated upstream from Daniel’s parcel. Over time, the action of the river’s water has moved some silt and dirt from the shores of Ursula’s property and deposited it downstream on the shores of Daniel’s property. Based upon this fact pattern, which of the following lists best describes what has occurred on Daniel’s property?

    Correct
    Incorrect
  85. Question 85 of 96
    85. Question

    Which of the following is true about the agent’s loyalty and obedience?
    I. Buyer’s must do everything possible to gain an advantage for the buyers.
    II. Can buy property at his own name and sell immediately for Maximum Profit.
    III. Seller’s agent must do everything possible to gain an advantage for the buyers.
    IV. Seller’s agent must obey all lawful instruction of the seller, is not obligated to obey instructions from the buyer.
    V. Buyer’s agent must obey all lawful instruction of the seller, is obligated to obey instructions from the seller.

    Correct
    Incorrect
  86. Question 86 of 96
    86. Question

    The Loan-to-Value (LTV) ratio is the maximum amount a lender will lend to finance a loan collateralized by real estate. The loan is based on a percentage of either the purchase price or the appraisal, whichever is less. The 20% down payment lenders traditionally required with conventional financing put homeownership beyond the reach of many Americans. FHA fully-insured financing substantially lowers the down payment lenders require for the purchase of a home because FHA mortgage insurance minimizes lender risk in the event of borrower default. All of the following statements are incorrect, except

    Correct
    Incorrect
  87. Question 87 of 96
    87. Question

    An appraiser is hired to appraise a single-family residence as part of a purchase transaction. The subject property has 4 bedrooms and 4 bathrooms. The appraiser needs comparable to complete the appraisal, and finds 3 recently-sold properties in the same subdivision. The first comparable has 4 bedrooms and 4 bathrooms. The second comparable has 4 bedrooms and 3 bathrooms. The third comparable has 3 bedrooms and 4 bathrooms. What is a correct statement regarding the market data approach?

    Correct
    Incorrect
  88. Question 88 of 96
    88. Question

    Which of the following is/are essential condition(s) for Mortgage?
    I. There must be contract, express or implied.
    II. Property must be identified, specific immovable property must be made security for the repayment of the loan.
    III. The Legal form is not required to be compiled with.
    IV. Amount and the terms of the loan must fixed, the rights of the parties must be defined or be definable.
    V. Interest on Loan must be floating

    Correct
    Incorrect
  89. Question 89 of 96
    89. Question

    A business trust, registered under SEBI (Real Estate Investment Trusts) Regulations, 2014 holds 100% of the shareholding in Alpha Ltd, a Indian Company. The business trust earned short term Capital Gain of 1.5 Crore on sale of listed shares of Alpha Ltd, which was distributed to unit holders. The tax liability in the hands of business trust is

    Correct
    Incorrect
  90. Question 90 of 96
    90. Question

    A REIT with 100 shares outstanding earns $1,000 in rent and incurs operating expenses of $400.In addition, the REIT owns property with an historic cost of $6,000 and depreciates it over a15 year period using straight-line depreciation. What are the funds from operations per share, and the earnings per share for this REIT?

    Correct
    Incorrect
  91. Question 91 of 96
    91. Question

    Which of the following is/are not true about Immovable Property purchased by Foreign Company in India?
    I. A foreign company establishing Branch Office or other place of businesses in India, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity.
    II. On winding up of the business, the sale proceeds of such property can be repatriated without the prior approval of Reserve Bank.
    III. Acquisition of immovable property by entities who had set up Branch Offices in India would not require prior approval of RBI irrespective of their main branch.
    IV. Foreign Company establishing Liaison Office cannot acquire immovable property.

    Correct
    Incorrect
  92. Question 92 of 96
    92. Question

    A property has a McDonald’s restaurant on it, which can earn $50,000 per year. In any other use (including another brand of restaurant), the most it can earn is $40,000 per year. Assuming a discount rate of 10% and constant cash flow in perpetuity, what is the “investment value” of this property to McDonald’s, and what is its “market value”?

    Correct
    Incorrect
  93. Question 93 of 96
    93. Question

    Suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease (annual payments). At the end of the sixth year you expect the rent to rise to $70,000 per year. At the end of 10 years, just after collecting the rent for that year, you expect to sell the building for 10 times the rent that year. What is the value of the property if the required initial return is 12 percent per year?

    Correct
    Incorrect
  94. Question 94 of 96
    94. Question

    Which of the following is/are not true about seller’s Right and Duties?
    I. The seller is bound to answer to the best of his information all relevant questions put to him by the buyer in respect to the property or the title there to.
    II. The seller is bound to give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits.
    III. The seller is not bound to produce to the buyer on his request for examination all documents of title relating to the property which are in the seller’s possession or power.
    IV. The seller is not entitled to the rents and profits of the property if the earnest money is paid by the buyer for an Immovable Property

    Correct
    Incorrect
  95. Question 95 of 96
    95. Question

    The Department of Industrial Policy and Promotion (DIPP) permitted FDI up to 100% under automatic route in townships, housing, built-up infrastructure and construction development projects subject to the following guidelines and the minimum area to be developed under each project would be as follows

    Correct
    Incorrect
  96. Question 96 of 96
    96. Question

    Which of the following additional clauses can turn out to be loopholes for a balanced and safe agreement?
    I. Interest on delayed payment.
    II. Time frame for Project Completion.
    III. Dispute Redressal

    Correct
    Incorrect

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