REE 3043 Exam 3 QUESTIONS WITH
ALL CORRECT ANSWERS
Cities with industry economies tend: - Answer-to be more resistant to economic
downturns due to cost advantages.
What is the effective tax rate based on the following information:
Taxes paid = $5,363
Market value of property = $425,000
Assessed value of property (after exemptions) = $325,000 - Answer-1.26%
Which of the following statements is (are) correct regarding Government use of its
power of Eminent Domain? - Answer-All of these answers are correct. (When seizing a
citizen's private property, under state powers of Eminent Domain, government's must
justify that the expropriation is for "public use". The term condemnation is used to
describe the act of a government exercising its power of Eminent Domain to transfer
title to private property from its rightful owner.The Fifth Amendment to the US
Constitution prohibits Government from taking private property, except for public use
and with just compensation.Eminent Domain is the right of government to acquire
private land, without the owner's consent, for public use, with due process and just
compensation.)
A property zoned "agriculture" is used for grazing sheep. This is considered: - Answer-a
conforming use.
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.
Which of the following statements is (are) correct about Real Estate Investment Trusts
(REITs): - Answer-All of these answers are correct. (Mortgage REITs lend money to
owners and developers of real estate, or invest in financial instruments secured by
mortgages on real estate. Equity REITs invest in, or own, real estate and make money
from the rents they collect. REIT shares trade on national stock exchanges or in the
over-the-counter markets (OTC). To qualify as a REIT, The Internal Revenue Service
requires that a company pay out 90% of its taxable income to shareholders every year.
Hybrid REITs are a combination of Equity REITs and Mortgage REITs.
Which is NOT a method the federal government uses to influence the real estate
market? - Answer-through zoning regulations.
, Real estate markets differ from other asset classes by having all of the following
characteristics except: - Answer-Homogeneous product.
All of the following statements define the role of Real Estate in our economy except: -
Answer-Real Estate generates only 20% of local government revenue (property tax).
Land without any improvements is sometimes called: - Answer-raw land.
Approximately what portion of U.S. households owns their own home? - Answer-
Approximately two-thirds
The total value of owner-occupied housing in the United States today is estimated to be
approximately: - Answer-19 Trillion
Judgment liens against an owner of real estate may be nullified or limited by: - Answer-
state laws governing homesteads.
Designating a principal residence as a homestead: - Answer-usually creates automatic
protection of the residence from general liens up to some limit.
Liens which arise from construction and other improvements to real estate are called: -
Answer-mechanics' liens
Rules used by the courts to determine whether something is a fixture include all
EXCEPT : - Answer-Law of Capture.
Which of these marriage-related forms of co-ownership gives the surviving spouse
about one-third of all the decedent's personal property and in-state real property? -
Answer-Elective Share
Which of the following is not correct regarding Timeshares? - Answer-They are a great
financial investment.
Leases typically transfer to the tenant, all the rights of the owner, except which of the
following? - Answer-Disposition.
ALL CORRECT ANSWERS
Cities with industry economies tend: - Answer-to be more resistant to economic
downturns due to cost advantages.
What is the effective tax rate based on the following information:
Taxes paid = $5,363
Market value of property = $425,000
Assessed value of property (after exemptions) = $325,000 - Answer-1.26%
Which of the following statements is (are) correct regarding Government use of its
power of Eminent Domain? - Answer-All of these answers are correct. (When seizing a
citizen's private property, under state powers of Eminent Domain, government's must
justify that the expropriation is for "public use". The term condemnation is used to
describe the act of a government exercising its power of Eminent Domain to transfer
title to private property from its rightful owner.The Fifth Amendment to the US
Constitution prohibits Government from taking private property, except for public use
and with just compensation.Eminent Domain is the right of government to acquire
private land, without the owner's consent, for public use, with due process and just
compensation.)
A property zoned "agriculture" is used for grazing sheep. This is considered: - Answer-a
conforming use.
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.
Which of the following statements is (are) correct about Real Estate Investment Trusts
(REITs): - Answer-All of these answers are correct. (Mortgage REITs lend money to
owners and developers of real estate, or invest in financial instruments secured by
mortgages on real estate. Equity REITs invest in, or own, real estate and make money
from the rents they collect. REIT shares trade on national stock exchanges or in the
over-the-counter markets (OTC). To qualify as a REIT, The Internal Revenue Service
requires that a company pay out 90% of its taxable income to shareholders every year.
Hybrid REITs are a combination of Equity REITs and Mortgage REITs.
Which is NOT a method the federal government uses to influence the real estate
market? - Answer-through zoning regulations.
, Real estate markets differ from other asset classes by having all of the following
characteristics except: - Answer-Homogeneous product.
All of the following statements define the role of Real Estate in our economy except: -
Answer-Real Estate generates only 20% of local government revenue (property tax).
Land without any improvements is sometimes called: - Answer-raw land.
Approximately what portion of U.S. households owns their own home? - Answer-
Approximately two-thirds
The total value of owner-occupied housing in the United States today is estimated to be
approximately: - Answer-19 Trillion
Judgment liens against an owner of real estate may be nullified or limited by: - Answer-
state laws governing homesteads.
Designating a principal residence as a homestead: - Answer-usually creates automatic
protection of the residence from general liens up to some limit.
Liens which arise from construction and other improvements to real estate are called: -
Answer-mechanics' liens
Rules used by the courts to determine whether something is a fixture include all
EXCEPT : - Answer-Law of Capture.
Which of these marriage-related forms of co-ownership gives the surviving spouse
about one-third of all the decedent's personal property and in-state real property? -
Answer-Elective Share
Which of the following is not correct regarding Timeshares? - Answer-They are a great
financial investment.
Leases typically transfer to the tenant, all the rights of the owner, except which of the
following? - Answer-Disposition.
