Commercial Property Management Exam 1 with 100% Correct Answers | Verified & Updated 2024

Commercial Property Management Exam 1 with 100% Correct Answers | Verified & Updated 2024 Skyscrapers - Answer️️ - Real Estate Investment Trusts (REITs) - Answer️️ --An entity that sells shares of beneficial interest to investors and uses the funds to invest in real estate or real estate mortgages -Must meet certain requirements such as a minimum number of investors and widely dispersed ownership -No corporate taxes need to be paid as long as a series of complex Internal Revenues Service qualification are met BOMI Institute - Answer️️ - Good Business Seminar - Answer️️ - Business plan - Answer️️ - Exit strategy - Answer️️ --The method by which a property owner intends to get out of an investment that he or she has made in the past -Is the way of "cashing out" an investment Planned Unit Development (PUD) - Answer️️ --A type of development that usually includes a mixture of open space, single-family homes, townhouses, condominiums or cooperatives, rental units, and recreational and commercial facilities within a defined area under a specific zoning arrangement -Are generally large in scale and built in several phases over a number of years -Typically, all infrastructure for the site is constructed before the improvements are built -Also, a zoning classification that allows flexibility in the design of a sub-division, usually an overall density limit which allows clustering of units to provide for common open space Covenants, conditions, and restrictions (CC&Rs) - Answer️️ --One of the documents that governs participation in a condominium or homeowners' association -Are enforceable rules and regulations that protect the economic value, architectural uniformity, and long-term desirability of the property -In shopping centers, it restricts the use of the property Easement - Answer️️ --An interest in or right to land that is owned by another person -A legal right to use land owned by another person or business for a specific purpose -May be granted by a deed or created as a result of actual use that was not prohibited Exclusive - Answer️️ --A right granted to the tenant that restricts the owner from leasing the space in the same shopping center to other retailers that sell similar merchandise or provide similar services, usually defined in an exclusive use clause -Care must be taken in granting exclusives because limitation of competition violates anti-trust regulations -When granted, exclusives must be taken into account when prospecting for and leasing to additional retail tenants Options - Answer️️ --The right to purchase or lease something at a future date for a specified price and terms -The right may or may not be exercised at the option holder's (optionee's) discretion -Options may be received, negotiated, or purchased -In a lease, the right to obtain a specific condition within a specific time (e.g., to renew at the same or a pre-agreed rate when the lease term expires; to expand into adjacent space at a pre- agreed time when that space is expected to be available; to cancel the lease) Fee simple - Answer️️ -The most complete type of private ownership of real estate which gives the title holder the right to possess, control, use, and dispose of the property without time limitation, including the unlimited right to divide the property among one's heirs Default - Answer️️ --Failure to fulfill an obligation (as a mortgage or other contracted payment) when it is due -The non-performance of a duty, such as those required in a lease or other contract Comparison grid - Answer️️ -A form used to compare the features Functional obsolescence - Answer️️ --A condition of obsolete design or use of a property -Defects in a building or structure that detract from its value or marketability -Such defects may be curable or incu