Real estate Investments /champions| 61 questions and answers.

if you are holding undeveloped land, your goal as an investment is: appreciation land is referred to as _____ because it can be seen touched tangible Formaldehyde gas is: Colorless Local governments can use which of the following to enforce subdivision requirements? Police Power The time limitation on deed restrictions is typically __________ due to changes that render the original restriction irrelevant. 25-35 years Which of the following is a rating used for investment opportunities? All of these are ratings used for investment opportunities Which phase assessment defines the steps needed to clean up contaminated areas of a property? Phase III Assessment The ________, authorized in 1954, was the first program of Urban Planning Assistance Subdivision Act Which of the following are potentially responsible parties for clean-up costs of an environmental problem? The party who transported the waste The right of ___________ includes the right to sell or mortgage property and the right to determine the duration of the ownership term. Disposition from which country's laws did community property stem? Spain A ______ is a written instrument by which a grantor conveys an ownership interest in real property to a grantee Deed Which of the following would be considered a trade fixture? Dentist Chair In a lease, the landlord is referred to as the __________. Lessor The lessee in a lease agreement is also known as the ________ Tenant _____________ compensates a seller for taking a property off the market for an extended period of time Earnest Money _________ is typically stated as a monthly charge to be paid by the tenant at the beginning of each month Rent A(n) ________ is the legally designated person who would be entitled to receive a deceased person's property in absence of a will. Heir Profit realized in the sale, exchange or disposition of a capital asset is considered ___________. Capital Gain Income In determining capital gains on inherited property, the basis of value generally becomes market value as of ______________. The date of the decedent's death In terms of qualifying for low-income housing tax credits, __________ means the initial lease term extends to 6 months or more. Nontransient The gross rent charged to a tenant living in low-income housing cannot exceed ____% of the qualifying income level for the tenant's family size 30 Which of the following costs of the principal residence can a homeowner deduct from ordinary taxable income? All of these costs are allowable tax deductions The IRS defines a(n) _________ as one in which the taxpayer receives at least one payment after the year of sale. Installment Sale __________ is also known as earned income. Active The main difference between a commercial loan and a residential loan is that the lender and investor expect the ___________ to repay the commercial loan. Property being acquired A(n) ________ permits the lender to share in all the benefits derived from the property Equity participation The "banker's rate" considers a day _____ of the annual rate. 1/360 The Truth-in-Lending Act is implemented by _________ Regulation Z A consortium of people or institutions that come together to share funding and/or expertise in a particular business endeavor, often real estate investment, is called a ____________ Syndicate For tax purposes, a dwelling may be a(n): Mobile home, house, boat, all of these How much does the handicap exception allow a taxpayer to deduct per year? up to $25,000 All taxable income of a sole proprietorship must be reported as part of the individual owner's income or loss on Schedule C, Form ___________, "Profit (or Loss) from Business or Profession" of the federal tax forms 1040 Which of the following is an item commonly reported on Schedule K? Net Self-employment income, ordinary income, ordinary loss. A _____________ details the assets and liabilities of a person or business at a particular point in time. Balance Sheet The _________ to appraisal estimates a property's value based on the income derived from it. Income Approach The three basic financial statements covered in Chapter 11 of the text are the balance sheet, the profit-and statement, and the Operating statement