IAAO COURSE 102 exam with verified
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answers
The |Economic |Principle |of |Anticipation |- |correct |answer |states |that |value |is |created |by |the |
expectation |of |benefits |to |be |derived |in |the |future.
Chattel |- |correct |answer |A |mortgage |on |personal |property.
Balloon |payment |- |correct |answer |A |payment |on |the |balance |due |of |a |note |at |the |end |of |the |
loan |term |that |is |in |excess |of |the |regular |payment |amounts. |Usually |found |in |a |partially |
amoritized |mortgage.
Conventional |mortgage |- |correct |answer |A |loan |that |is |neither |insured |nor |guaranteed |by |the |
federal |government.
Contract |rent |- |correct |answer |The |actual |rent |paid |in |accordance |with |terms |of |a |lease.
Minimum |base |rent |- |correct |answer |The |fixed |portion |of |rent |under |the |terms |of |a |
percentage |lease.
Excess |rent |- |correct |answer |The |amount |which |contract |rent |exceeds |market/economic |rent. |
Bad |for |tenant |but |good |for |landlord.....look |at |this |in |terms |of |the |landlord!
Overage |rent |- |correct |answer |The |variable |portion |of |the |rent |under |the |terms |of |a |
percentage |lease. |This |is |the |rent |over |and |above |the |minimum |base |rent. |Typically |based |on |
a |percentage |of |sales |or |revenue.
Percentage |lease |- |correct |answer |A |contract |that |requires |a |fixed |minimum |base |rent |and |a |
variable |rent |(overage |rent) |based |on |volume |of |business, |sales, |productivity, |or |use |of |the |
property |by |the |tenant.
, Gross |lease |- |correct |answer |A |lease |in |which |the |landlord |is |required |to |pay |all |operating |
expenses |associated |with |the |real |estate.
Net |lease |- |correct |answer |A |lease |in |which |the |tenant |is |required |to |pay |all |operating |
expenses |associated |with |the |real |estate.
Gross |leasable |area |(GLA) |- |correct |answer |The |total |leasable |area, |including |common |areas.
Net |operating |income |- |correct |answer |The |income |remaining |after |developing |effective |gross |
income |and |allowing |for |operating |expenses |and |reserves |for |replacement.
Mortgage |interest |rate |- |correct |answer |The |lender's |yield |on |a |mortgage.
Effective |tax |rate |- |correct |answer |(ETR) |Is |the |percentage |that |annual |real |estate |taxes |are |in |
relation |to |total |property |value.
Overall |capitalization |rate |- |correct |answer |the |weighted |average |of |the |land |capitalization |rate
|and |the |building |capitalization |rate.
Capitalization |- |correct |answer |The |process |used |to |convert |income |into |an |estimate |of |value.
Fixed-rate |mortgage |- |correct |answer |A |loan |secured |by |real |property |featuring |an |interest |
rate |that |is |constant |for |the |term |of |the |loan.
Anticipation |- |correct |answer |The |underlying |principle |providing |the |basis |of |the |income |
capitalization |approach.
Market |rent |- |correct |answer |The |amount |of |rent |that |a |property |should |command |in |the |
open |market.
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answers
The |Economic |Principle |of |Anticipation |- |correct |answer |states |that |value |is |created |by |the |
expectation |of |benefits |to |be |derived |in |the |future.
Chattel |- |correct |answer |A |mortgage |on |personal |property.
Balloon |payment |- |correct |answer |A |payment |on |the |balance |due |of |a |note |at |the |end |of |the |
loan |term |that |is |in |excess |of |the |regular |payment |amounts. |Usually |found |in |a |partially |
amoritized |mortgage.
Conventional |mortgage |- |correct |answer |A |loan |that |is |neither |insured |nor |guaranteed |by |the |
federal |government.
Contract |rent |- |correct |answer |The |actual |rent |paid |in |accordance |with |terms |of |a |lease.
Minimum |base |rent |- |correct |answer |The |fixed |portion |of |rent |under |the |terms |of |a |
percentage |lease.
Excess |rent |- |correct |answer |The |amount |which |contract |rent |exceeds |market/economic |rent. |
Bad |for |tenant |but |good |for |landlord.....look |at |this |in |terms |of |the |landlord!
Overage |rent |- |correct |answer |The |variable |portion |of |the |rent |under |the |terms |of |a |
percentage |lease. |This |is |the |rent |over |and |above |the |minimum |base |rent. |Typically |based |on |
a |percentage |of |sales |or |revenue.
Percentage |lease |- |correct |answer |A |contract |that |requires |a |fixed |minimum |base |rent |and |a |
variable |rent |(overage |rent) |based |on |volume |of |business, |sales, |productivity, |or |use |of |the |
property |by |the |tenant.
, Gross |lease |- |correct |answer |A |lease |in |which |the |landlord |is |required |to |pay |all |operating |
expenses |associated |with |the |real |estate.
Net |lease |- |correct |answer |A |lease |in |which |the |tenant |is |required |to |pay |all |operating |
expenses |associated |with |the |real |estate.
Gross |leasable |area |(GLA) |- |correct |answer |The |total |leasable |area, |including |common |areas.
Net |operating |income |- |correct |answer |The |income |remaining |after |developing |effective |gross |
income |and |allowing |for |operating |expenses |and |reserves |for |replacement.
Mortgage |interest |rate |- |correct |answer |The |lender's |yield |on |a |mortgage.
Effective |tax |rate |- |correct |answer |(ETR) |Is |the |percentage |that |annual |real |estate |taxes |are |in |
relation |to |total |property |value.
Overall |capitalization |rate |- |correct |answer |the |weighted |average |of |the |land |capitalization |rate
|and |the |building |capitalization |rate.
Capitalization |- |correct |answer |The |process |used |to |convert |income |into |an |estimate |of |value.
Fixed-rate |mortgage |- |correct |answer |A |loan |secured |by |real |property |featuring |an |interest |
rate |that |is |constant |for |the |term |of |the |loan.
Anticipation |- |correct |answer |The |underlying |principle |providing |the |basis |of |the |income |
capitalization |approach.
Market |rent |- |correct |answer |The |amount |of |rent |that |a |property |should |command |in |the |
open |market.
