COMMERCIAL REAL ESTATE EXAM
QUESTIONS WITH SOLVED
SOLUTIONS!!
1 of 107
Term
what about architects and engineers?
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Mezzanine financing is advantageous because it is treated like equity on a
company's balance sheet and may make it easier to obtain standard bank
financing. To attract mezzanine financing, a company usually must demonstrate a
track record in the industry with an established reputation and product, a history
of profitability and a viable expansion plan for the business (e.g. expansions,
acquisitions, IPO).
, o They begin their work long before improvement begins.
o But nobody knows
o Some statutes can close gap by making notice.
●Purchase price
●Financing
● Closing date
o Parties need to sign paper and transfer funds via escrow to pay any capital
gains taxes applicable to the seller.
Don't know?
2 of 107
Definition
A situation in which a parent company sells a minority share of a
child company, usually in an IPO, while retaining the rest. The child
company will have its own board of directors and financial
statements, but will benefit from the parent company's resources
and strategic support. Usually, the parent company will eventually
sell the rest of the child company in the open market. also called
partial spinoff.
2. To separate the value of a property from the value of income that
the property generates. For example, if the owner of an oil field sells
the rights to the oil for a period of time, the owner is separating the
value of the land itself from the value of the oil.
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, Arbitration What is marketable title?
Workout Matters What is a carve-out
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3 of 107
Definition
Members of the llc must individually sign and certify that they have
personal liability for warranties and representations.
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Sub Leasing LLC Member Certification
Warrant And Defend. Further Assurances
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4 of 107
Term
Assignment
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, ● gets the agreement
nailed down before spending
time and money on working on ...
the purchase/sale agreement
●purchase price
usually placed in an escrow
● financing
account.
● closing date
Don't know?
5 of 107
Definition
An insurance policy provision under which the insurer and the
insured share costs incurred after the deductible is met, according
to a specific formula.
2. More generally, a sharing of risk between the insurer and the
insured. also called copay.
Give this one a try later!
Premium Covenants
Coinsurance Default
Don't know?
QUESTIONS WITH SOLVED
SOLUTIONS!!
1 of 107
Term
what about architects and engineers?
Give this one a try later!
Mezzanine financing is advantageous because it is treated like equity on a
company's balance sheet and may make it easier to obtain standard bank
financing. To attract mezzanine financing, a company usually must demonstrate a
track record in the industry with an established reputation and product, a history
of profitability and a viable expansion plan for the business (e.g. expansions,
acquisitions, IPO).
, o They begin their work long before improvement begins.
o But nobody knows
o Some statutes can close gap by making notice.
●Purchase price
●Financing
● Closing date
o Parties need to sign paper and transfer funds via escrow to pay any capital
gains taxes applicable to the seller.
Don't know?
2 of 107
Definition
A situation in which a parent company sells a minority share of a
child company, usually in an IPO, while retaining the rest. The child
company will have its own board of directors and financial
statements, but will benefit from the parent company's resources
and strategic support. Usually, the parent company will eventually
sell the rest of the child company in the open market. also called
partial spinoff.
2. To separate the value of a property from the value of income that
the property generates. For example, if the owner of an oil field sells
the rights to the oil for a period of time, the owner is separating the
value of the land itself from the value of the oil.
Give this one a try later!
, Arbitration What is marketable title?
Workout Matters What is a carve-out
Don't know?
3 of 107
Definition
Members of the llc must individually sign and certify that they have
personal liability for warranties and representations.
Give this one a try later!
Sub Leasing LLC Member Certification
Warrant And Defend. Further Assurances
Don't know?
4 of 107
Term
Assignment
Give this one a try later!
, ● gets the agreement
nailed down before spending
time and money on working on ...
the purchase/sale agreement
●purchase price
usually placed in an escrow
● financing
account.
● closing date
Don't know?
5 of 107
Definition
An insurance policy provision under which the insurer and the
insured share costs incurred after the deductible is met, according
to a specific formula.
2. More generally, a sharing of risk between the insurer and the
insured. also called copay.
Give this one a try later!
Premium Covenants
Coinsurance Default
Don't know?
