Misc Info

Question 1

Injunction

Answer 1

a judicial order that restrains a person from beginning or continuing an action threatening or invading the legal right of another, or that compels a person to carry out a certain act, e.g., to make restitution to an injured party.

Question 2

Abrogate

Answer 2

to annul or repeal a law or pass legislation that contradicts the prior law. Abrogate also applies to revoking or withdrawing conditions of a contract.

Question 3

Arbitrage

Answer 3

refers to an increase in return created by the difference between interest rates charged in financing arrangements

Question 4

Arbitration

Answer 4

The submission of a dispute to an unbiased third person designated by the parties to the controversy, who agree in advance to comply with the award—a decision to be issued after a hearing at which both parties have an opportunity to be heard.

Question 5

Injunctive Relief

Answer 5

If the landlord is harassing or finding reasons to enter the premises the tenant may obtain injunctive relief to prevent the recurrence of the conduct, or upon written notice terminate the rental agreement. Tenant may recover actual damages for Emotional Distress

Question 6

Landlord

Answer 6

If the tenant is kicked out due to illegal activities the landlord may place a lien on the property and tenant must pay the rent and cost of putting the lien on.

Any property left with the landlord for 30 days will be deemed abandoned and may be disposed of.

Occupancy limit of 2 per bedroom and can not force mother who has more children during the term of the lease into a larger unit

Question 7

Tenants

Answer 7

Tenants may have someone licensed to fix and deduct from rent but can not exceed $100
If premises are damaged due to fire or other casualty, as long as not tenants fault, they may vacate the premises immediately and notify the landlord in writing within 1 week to terminate the lease

Question 8

Termination of Agency

Answer 8

completion, performance, or fulfillment of purpose of agency
destruction or condemnation of the property
expiration of the terms of the agency
mutual agreement of all parties to the contract
breach by one of the parties ( who may also be liable for damages)
operation of law, as in bankruptcy of the principal

Question 9

Measurements

Answer 9

Mile- 5,280 feet
Acre- 43,560 Sq Ft
Square Mile- 640 Acres (a section)

Question 10

Characteristics of Land

Answer 10

Economic- Scarcity, Situs, Permanence of Improvements

Physical- Immobility, Indestructibility, Uniqueness

Question 11

Bundle of Legal Rights

Answer 11

Control, Disposition, Enjoyment, Exclusion, Possession

Question 12

Value ‘DUST’

Answer 12

Demand, Utility, Scarcity, Transferability

Question 13

Appraisals

Answer 13

Sales Comparison Approach -most reliable aka market data approach.. value is obtained by comparing the property being appraised
Cost Approach- Value based on principle of substitution/value of land/current cost of construction/deduct depreciation
Income Approach- GIVEN-Gross, Income, Vacancy, Expenses, NOI
Cap Rate
Value based on the present value of the right to future income

Question 14

The Brokerage Relations Act

Answer 14

applies to property managers if
they own the property they are managing
they are resident managers
they are managing the property for another person

Question 15

Gross Rent Mulitplier

Answer 15

10 unit apt bldg selling for $1Mill. Each unit is renting for $1000. What is GRM?
Price/Gross Income=GRM
$1,000,000/ 10 x 1,000x 12)= 8.33 GRM

Question 16

Cap Rate

Answer 16

NOI (Net Operating Income/Price

120,000(Property Price)/1,000,000(Being Sold for) =12%

Question 17

Value

Answer 17

NOI/Cap Rate

120,000/9% =$1,333,333.30

Question 18

NOI

Answer 18

Gross Income - Operating Expenses