REE 3043 Paul Black- FIU Exam 1 TEST STUDY
GUIDE 2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH RATIONALES
|| 100% GUARANTEED PASS
<RECENT VERSION>
1. Real State - ANSWER ✓ Land and improvements to the land-house,
structures built on the land. The land such as mineral rights, oil, gold, Air
rights.
2. Air Rights - ANSWER ✓ The ability to buy the right to build a higher
building. Example: Miami beach buying selling zones. In NYC you must
buy air rights of an adjoining property, exam Trump Tower
3. Real property - ANSWER ✓ Anything that won't fall out of a house if
turned up - side down. It's attached to the house/building.
4. Personal Property - ANSWER ✓ Not attached to the house/ building ( real
property) Exam: Table, furniture, fridge, Anything you can unplug and it
doesn't cause damage to the property.
5. Fixture - ANSWER ✓ when something was at one time personal property
and then it became attached to real property is now considered to be real
property. If not on the contract, then no valid.
6. Law of fixture - ANSWER ✓ If attached and the purchase contract is silent
on this issue, then the fixture stays in the house. Exam: The chandelier
exam.
7. Real state professions - ANSWER ✓ Agent, broker, financing, litigation,
management, developer, constructor, appraiser, architect, land planner,
analyst, etc.
,8. Infrastructure - ANSWER ✓ Services that are built by the government.
Exam: Roads, Water, Sewer lines, Public schools, Police, Fire, Parks,
Libraries, Government services.
9. Urban sprawl - ANSWER ✓ When someone builds way too far.
Concurrency was created to prevent (leap-frogging)
10.Concurrency (con: TWO) Currency: Same time - ANSWER ✓ Two things
happening at the same time.
1. Impact to society: Someone building 100 homes- more kids, more roads
needed.
2. Infrastructure: Is built to satisfy this impact- response of the government to
that impact.
11.Gestation period - ANSWER ✓ Time from when a project is conceived,
until it's complete and available for occupancy. Exam: Pregnancy.
12.Value Creation - ANSWER ✓ When the value of something (what someone
will pay for it) exceeds its cost.
13.Highest and best use - ANSWER ✓ Use of land that produces the greatest
long term economic return. Has 3 criteria
1. Legal use of the land: Must conform to zoning
2. Practical use of the land: Practical use of the land
3. Feasible use of " " : Is the deal financially feasible?
14.Interim Use - ANSWER ✓ A temporary use of land. Exam: Drive in movies,
Mobile home park, parking lots, Circus, Parking.
15.As a result of growth management laws, municipalities may impose a
number of requirements, but not - ANSWER ✓ employee benefit statements.
16.Three students, Bob, Michelle and Jasmine, upon graduation from UCF,
plan to invest in Real Estate. Bob is going to buy shares in an Exchange-
Traded, Equity, Real Estate Investment Trust (REIT). Michelle is going to
purchase a four-unit apartment building near UCF, to rent to college
students. Jasmine is going to purchase shares in Home Properties, Inc. a
, leading Apartment REIT. In light of this, which of the following statements
is most correct? - ANSWER ✓ Bob and Jasmine will be indirect equity
investors in real estate and Michelle will be a direct real estate equity
investor in real estate.
17.Which of the following statements is least correct about Real Estate
Investment Trusts (REITs): - ANSWER ✓ REIT shares trade only on
national stock exchanges.
18.local government influences real estate market through: - ANSWER ✓
zoning codes and other land regulations
19.Characteristics of real estate: - ANSWER ✓ immobile, localized markets,
segmented markets
20.Escheat - ANSWER ✓ If someone dies interstate (without a will) and has no
relatives. The gov takes ownership, then sells it.
21.Taxations - ANSWER ✓ Property tax is an Ad Valorem Tax.
22.Market value - ANSWER ✓ In property appraiser office it means- their
opinion of market value for tax purposes only. In the real worls it means:
The probable selling price.
23.homestead exemption - ANSWER ✓ a state law that gives homeowners a
tax break for property that is their primary residence. Only one home.
24.SOH - ANSWER ✓ Save our homes: State wide program that limits the
annual increase in your assessed value to a 3% gain per year.
25.Portability - ANSWER ✓ If you move out of an older home into a More
expensive home with a higher tax bill, you can bring part of your tax savings
with you so it eases the tax bill on your home
26.Eminent domain - ANSWER ✓ Power of a government to TAKE private
property for public good. Exam: to make streets bigger.
(taking= compensation/MONEY) paid fair value.
- Can not be done with malice. ( to get back at someone)
, -Authority is granted by state legislature.
-Who can ask for condemning authority? A city, country, state, US, water,
management district, Florida department of transportation.
Example: Kelo VS City of New London: wanted to TAKE 115 homes to
build a commercial development in London. 15 Homeowners refused to sell
stating "it is not in the public good if taken, then sold to a private developer"
The main argument: " what is in the public good is and what is public
benefit"
Supreme court decided it was in the public good.
27.Inverse condemnation - ANSWER ✓ Where the gov puts so many
restrictions on your property that it limits or lowers the economic value of
the property but they are not paying you for it. They do not declare a
"taking"
28.police power - ANSWER ✓ The right of the government to regulate the use
of private property to protect the welfare and safety of the general public.
Best example is zoning: How much of what type of product can you build on
a given piece of property?
- Building and fire codes are restrictions under zoning.
**Example: the Lame Horse Night Club in Moscow that caught on fire and
killed 112 people.
29.3 types of Zoning - ANSWER ✓ Residential
Commercial
Industrial
30.Real estate values derive from the interaction of three different sectors in the
economy. Which of the following sectors serves to allocate financial
resources among households and firms requiring funds?
user market
capital market
government
property market - ANSWER ✓ capital market
31.The expected stream of rental income is capitalized into value by converting
expected future cash flows into present value through a process called:
GUIDE 2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH RATIONALES
|| 100% GUARANTEED PASS
<RECENT VERSION>
1. Real State - ANSWER ✓ Land and improvements to the land-house,
structures built on the land. The land such as mineral rights, oil, gold, Air
rights.
2. Air Rights - ANSWER ✓ The ability to buy the right to build a higher
building. Example: Miami beach buying selling zones. In NYC you must
buy air rights of an adjoining property, exam Trump Tower
3. Real property - ANSWER ✓ Anything that won't fall out of a house if
turned up - side down. It's attached to the house/building.
4. Personal Property - ANSWER ✓ Not attached to the house/ building ( real
property) Exam: Table, furniture, fridge, Anything you can unplug and it
doesn't cause damage to the property.
5. Fixture - ANSWER ✓ when something was at one time personal property
and then it became attached to real property is now considered to be real
property. If not on the contract, then no valid.
6. Law of fixture - ANSWER ✓ If attached and the purchase contract is silent
on this issue, then the fixture stays in the house. Exam: The chandelier
exam.
7. Real state professions - ANSWER ✓ Agent, broker, financing, litigation,
management, developer, constructor, appraiser, architect, land planner,
analyst, etc.
,8. Infrastructure - ANSWER ✓ Services that are built by the government.
Exam: Roads, Water, Sewer lines, Public schools, Police, Fire, Parks,
Libraries, Government services.
9. Urban sprawl - ANSWER ✓ When someone builds way too far.
Concurrency was created to prevent (leap-frogging)
10.Concurrency (con: TWO) Currency: Same time - ANSWER ✓ Two things
happening at the same time.
1. Impact to society: Someone building 100 homes- more kids, more roads
needed.
2. Infrastructure: Is built to satisfy this impact- response of the government to
that impact.
11.Gestation period - ANSWER ✓ Time from when a project is conceived,
until it's complete and available for occupancy. Exam: Pregnancy.
12.Value Creation - ANSWER ✓ When the value of something (what someone
will pay for it) exceeds its cost.
13.Highest and best use - ANSWER ✓ Use of land that produces the greatest
long term economic return. Has 3 criteria
1. Legal use of the land: Must conform to zoning
2. Practical use of the land: Practical use of the land
3. Feasible use of " " : Is the deal financially feasible?
14.Interim Use - ANSWER ✓ A temporary use of land. Exam: Drive in movies,
Mobile home park, parking lots, Circus, Parking.
15.As a result of growth management laws, municipalities may impose a
number of requirements, but not - ANSWER ✓ employee benefit statements.
16.Three students, Bob, Michelle and Jasmine, upon graduation from UCF,
plan to invest in Real Estate. Bob is going to buy shares in an Exchange-
Traded, Equity, Real Estate Investment Trust (REIT). Michelle is going to
purchase a four-unit apartment building near UCF, to rent to college
students. Jasmine is going to purchase shares in Home Properties, Inc. a
, leading Apartment REIT. In light of this, which of the following statements
is most correct? - ANSWER ✓ Bob and Jasmine will be indirect equity
investors in real estate and Michelle will be a direct real estate equity
investor in real estate.
17.Which of the following statements is least correct about Real Estate
Investment Trusts (REITs): - ANSWER ✓ REIT shares trade only on
national stock exchanges.
18.local government influences real estate market through: - ANSWER ✓
zoning codes and other land regulations
19.Characteristics of real estate: - ANSWER ✓ immobile, localized markets,
segmented markets
20.Escheat - ANSWER ✓ If someone dies interstate (without a will) and has no
relatives. The gov takes ownership, then sells it.
21.Taxations - ANSWER ✓ Property tax is an Ad Valorem Tax.
22.Market value - ANSWER ✓ In property appraiser office it means- their
opinion of market value for tax purposes only. In the real worls it means:
The probable selling price.
23.homestead exemption - ANSWER ✓ a state law that gives homeowners a
tax break for property that is their primary residence. Only one home.
24.SOH - ANSWER ✓ Save our homes: State wide program that limits the
annual increase in your assessed value to a 3% gain per year.
25.Portability - ANSWER ✓ If you move out of an older home into a More
expensive home with a higher tax bill, you can bring part of your tax savings
with you so it eases the tax bill on your home
26.Eminent domain - ANSWER ✓ Power of a government to TAKE private
property for public good. Exam: to make streets bigger.
(taking= compensation/MONEY) paid fair value.
- Can not be done with malice. ( to get back at someone)
, -Authority is granted by state legislature.
-Who can ask for condemning authority? A city, country, state, US, water,
management district, Florida department of transportation.
Example: Kelo VS City of New London: wanted to TAKE 115 homes to
build a commercial development in London. 15 Homeowners refused to sell
stating "it is not in the public good if taken, then sold to a private developer"
The main argument: " what is in the public good is and what is public
benefit"
Supreme court decided it was in the public good.
27.Inverse condemnation - ANSWER ✓ Where the gov puts so many
restrictions on your property that it limits or lowers the economic value of
the property but they are not paying you for it. They do not declare a
"taking"
28.police power - ANSWER ✓ The right of the government to regulate the use
of private property to protect the welfare and safety of the general public.
Best example is zoning: How much of what type of product can you build on
a given piece of property?
- Building and fire codes are restrictions under zoning.
**Example: the Lame Horse Night Club in Moscow that caught on fire and
killed 112 people.
29.3 types of Zoning - ANSWER ✓ Residential
Commercial
Industrial
30.Real estate values derive from the interaction of three different sectors in the
economy. Which of the following sectors serves to allocate financial
resources among households and firms requiring funds?
user market
capital market
government
property market - ANSWER ✓ capital market
31.The expected stream of rental income is capitalized into value by converting
expected future cash flows into present value through a process called:
