REE 3043 EXAM 1 CURCIO QUESTIONS
WITH REVISED AND UPDATED
ANSWERS
What two elements are involved in every real estate investment decision? - Answer-
Initial cost and value of future benefit
Approximately what portion of U.S. households owns their own home? - Answer-
Approximately 2/3
A neighborhood association was formed to improve the community. They built parks,
bike paths, landscaped the entrance and invited entertainers to perform at the 4th of
July celebrations. All of this has contributed to an increase in property values. What
would account for this increase? - Answer-Positive Externalities
Zoning ordinances do not have the authority to restrict the: - Answer-size of a family
allowed to live on the property.
A certain amount of insulation is required within outside walls; doorways have to be a
certain width; and a building must have a fire escape. These are all examples of: -
Answer-building codes
What is the effective tax rate based on the following information:
Taxes paid = $8,710
Market value of property = $425,000
Assessed value of property (after exemptions) = $325,000 - Answer-2.05%
Which of the following statements is least correct regarding Government use of its
power of Eminent Domain? - Answer-Eminent Domain is the inherent power of the
government to seize a citizen's private property, or rights in private property, if the
owners consent.
Community ordinances regulating land use which, through requirements such as
unreasonable lot size, result in inadequate provision for low and moderate income
housing is called: - Answer-exclusionary zoning
Three students, John, Kathryn and Michelle, upon graduation from UCF, plan to invest
in Real Estate. John is going to buy shares in an Exchange-Traded, Equity, Real Estate
Investment Trust (REIT). Kathryn is going to purchase shares in Home Properties, Inc.
a leading Equity, Apartment REIT. Michelle is going to purchase a four-unit apartment
building near UCF, to rent to college students. In light of this, which of the following
statements is most correct? - Answer-John and Kathryn will be indirect equity investors
in real estate and Michelle will be a direct equity, real estate investor.
WITH REVISED AND UPDATED
ANSWERS
What two elements are involved in every real estate investment decision? - Answer-
Initial cost and value of future benefit
Approximately what portion of U.S. households owns their own home? - Answer-
Approximately 2/3
A neighborhood association was formed to improve the community. They built parks,
bike paths, landscaped the entrance and invited entertainers to perform at the 4th of
July celebrations. All of this has contributed to an increase in property values. What
would account for this increase? - Answer-Positive Externalities
Zoning ordinances do not have the authority to restrict the: - Answer-size of a family
allowed to live on the property.
A certain amount of insulation is required within outside walls; doorways have to be a
certain width; and a building must have a fire escape. These are all examples of: -
Answer-building codes
What is the effective tax rate based on the following information:
Taxes paid = $8,710
Market value of property = $425,000
Assessed value of property (after exemptions) = $325,000 - Answer-2.05%
Which of the following statements is least correct regarding Government use of its
power of Eminent Domain? - Answer-Eminent Domain is the inherent power of the
government to seize a citizen's private property, or rights in private property, if the
owners consent.
Community ordinances regulating land use which, through requirements such as
unreasonable lot size, result in inadequate provision for low and moderate income
housing is called: - Answer-exclusionary zoning
Three students, John, Kathryn and Michelle, upon graduation from UCF, plan to invest
in Real Estate. John is going to buy shares in an Exchange-Traded, Equity, Real Estate
Investment Trust (REIT). Kathryn is going to purchase shares in Home Properties, Inc.
a leading Equity, Apartment REIT. Michelle is going to purchase a four-unit apartment
building near UCF, to rent to college students. In light of this, which of the following
statements is most correct? - Answer-John and Kathryn will be indirect equity investors
in real estate and Michelle will be a direct equity, real estate investor.
