Commercial Real Estate Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
chronological order of filing - CORRECT ANSWER Once senior liens such as
property tax, assessment, and CDD liens have been addressed in the case of default, the
priority
sequence for processing the remaining liens on the property is determined by the:
dominant tenement - CORRECT ANSWER When identifying an easement
appurtenant, the parcel of land that benefits from the right to use the land in question is
referred to as the:
mechanical engineer - CORRECT ANSWER Which of the following types of
engineers is responsible for providing specifications and design for the HVAC system and
other building systems?
site planner or land planner - CORRECT ANSWER The strength of a successful
developer lies in his or her ability to select design professionals and engineers that play vital
roles in the project's plan and completion. Which of the following individuals would be most
concerned, on a general level,
with the design aesthetics, optimal use and preservation of the site, traffic flows, utility
systems and drainage systems?
landlord - CORRECT ANSWER The lease is a contract between the owner and the
tenant that transfers exclusive use and possession of the space to the
tenant in return for rent or other consideration. In this arrangement, the owner is referred to as
the:
Finding clients (I <3 KEETH) - CORRECT ANSWER Per the lecture slides, what is
the most difficult aspect of being a commercial real estate broker?
, equity interest in the project - CORRECT ANSWER Since banks seldom loan 100
percent of construction costs, developers often turn to mezzanine financing to obtain
necessary funds. With mezzanine debt, which of the following entities is typically pledged as
collateral to the lender?
attached to the property and is intended to be permanent - CORRECT ANSWER Based
on your understanding of the rules for determining when an object becomes a fixture, which
of the following items
would most likely be considered a fixture at the time of sale?
site acquisition - CORRECT ANSWER Once a specific use has been chosen for a site,
the first stage in the development process, often considered the "entry
ticket to development," is:
joint tenancy with right of survivorship - CORRECT ANSWER Bill and Mike go in
together to purchase 342 acres of land to use for hunting and family vacations. Ten years
later, Bill dies
and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately, she has
no claim to the land and that
upon Bill's death, his ownership interest transferred to Mike. What type of co-ownership did
Bill and Mike have?
maximize the value of the property - CORRECT ANSWER Commercial real estate
returns are determined in no small part by how well the ongoing management function is
performed. Management decisions can be classified into two categories: property
management and asset management.
Which of the following functions would be considered a primary responsibility of an asset
manager?
lease-up risk - CORRECT ANSWER In each stage of the development process, the
developer faces risks that can have a profound impact on the success of the
particular project. Which of the following risks is of primary concern after the construction
phase has been completed?.
QUESTIONS AND CORRECT ANSWERS
chronological order of filing - CORRECT ANSWER Once senior liens such as
property tax, assessment, and CDD liens have been addressed in the case of default, the
priority
sequence for processing the remaining liens on the property is determined by the:
dominant tenement - CORRECT ANSWER When identifying an easement
appurtenant, the parcel of land that benefits from the right to use the land in question is
referred to as the:
mechanical engineer - CORRECT ANSWER Which of the following types of
engineers is responsible for providing specifications and design for the HVAC system and
other building systems?
site planner or land planner - CORRECT ANSWER The strength of a successful
developer lies in his or her ability to select design professionals and engineers that play vital
roles in the project's plan and completion. Which of the following individuals would be most
concerned, on a general level,
with the design aesthetics, optimal use and preservation of the site, traffic flows, utility
systems and drainage systems?
landlord - CORRECT ANSWER The lease is a contract between the owner and the
tenant that transfers exclusive use and possession of the space to the
tenant in return for rent or other consideration. In this arrangement, the owner is referred to as
the:
Finding clients (I <3 KEETH) - CORRECT ANSWER Per the lecture slides, what is
the most difficult aspect of being a commercial real estate broker?
, equity interest in the project - CORRECT ANSWER Since banks seldom loan 100
percent of construction costs, developers often turn to mezzanine financing to obtain
necessary funds. With mezzanine debt, which of the following entities is typically pledged as
collateral to the lender?
attached to the property and is intended to be permanent - CORRECT ANSWER Based
on your understanding of the rules for determining when an object becomes a fixture, which
of the following items
would most likely be considered a fixture at the time of sale?
site acquisition - CORRECT ANSWER Once a specific use has been chosen for a site,
the first stage in the development process, often considered the "entry
ticket to development," is:
joint tenancy with right of survivorship - CORRECT ANSWER Bill and Mike go in
together to purchase 342 acres of land to use for hunting and family vacations. Ten years
later, Bill dies
and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately, she has
no claim to the land and that
upon Bill's death, his ownership interest transferred to Mike. What type of co-ownership did
Bill and Mike have?
maximize the value of the property - CORRECT ANSWER Commercial real estate
returns are determined in no small part by how well the ongoing management function is
performed. Management decisions can be classified into two categories: property
management and asset management.
Which of the following functions would be considered a primary responsibility of an asset
manager?
lease-up risk - CORRECT ANSWER In each stage of the development process, the
developer faces risks that can have a profound impact on the success of the
particular project. Which of the following risks is of primary concern after the construction
phase has been completed?.
