Real Estate Financing Practice Flashcards
What is a blanket loan?
A blanket loan covers more than one parcel or lot. It is usually used to finance subdivisions development. However, it can finance the purchase of a improved property or consolidate loans as well.
What is the package loan?
Includes real and personal property such as furniture, drapes, the kitchen range, dishwasher, as part of the sales price of the home.
what is a wraparound loan?
It enables a borrower with an existing mortgage or deed of trust loan to obtain additional financing from the second lender without paying off the first loan. The lender gives the borrower a new, increased loan at a higher interest rate and it assumes payment of the existing loan.
What is an open~end loan?
A mortgage loan that is expandable by increments up to maximum dollar amount, will loathing secured by the same original mortgage.
What is in the estate for years?
It’s a leasehold estate that continues for a definite period. That Maybe for years, months, weeks, or even days.
What is an estate from period to period?
Created when the landlord and tenant into into an agreement for an indefinite time-that is, the lease does not contain a specific expiration date. It continues until proper notice has been given.
What is a lease?
It’s a contract between an owner of real estate (the lessor) and a tenant (the leasee).
What is a leasehold estate?
It’s a tenants rights of possess real estate for the time of the lease.
What is an estate at Will?
It gives the tenants the right to possess the property with the landlord consent for an unspecified or uncertain time. It continues until it’s terminated by either party giving proper notice.
What is an estate at sufferance?
Arises when a tenant lawfully possess real property continues in possession of the premises without the landlord consent after the rights expired
What is a gross lease?
It’s where the tenant pays fixed rent they also may pay taxes, repairs, insurance, etc. Residential and commercial office leases are most often gross leases
What is a net lease?
A net lease they pay a fixed rent plus all or most property charges. Most often associated with large commercial and industrial leases.
What is a percentage lease?
Tenant pays a fixed rent plus a percent of the gross sales. Received by the tenant doing business on the leased property. The percentages charged is negotiable and varies depending upon the nature of the business, location of the property and general economic conditions.
What is a variable lease?
Increase in the rental charges during the lease period.
What is a ground lease?
It’s when an owner of a piece of land allows the tenant to erect the building on the land, the owner still owns the land and the tenant pays rent for the grounds. Separate ownership of the land and the building.
Oil and gas lease?
When an oil company leases land to explore for oil and gas, a special lease agreement must be negotiated.
What is a lease purchase?
Part of the rent is applied towards the purchase price of the property until it is reduced to an amount for which the tenet can obtain financing or purchased the property out right, depending on the terms of the lease purchase agreement.
What is a sale and leaseback?
It’s an arrangement where the owners of a property sell the property and then lease it back again for an agreed period and Rental.
Which type of insurance coverages insures an employer gives most claims for job related injuries?
Worker’s Compensation
Property managers is offered a choice of three insurance policies with different deductibles. If the property manager select the policy with the highest deductible, which risk management technique is being used?
Retaining risk
Adaptation of property specifications to suit tennant requirements are…
Tenant improvements.
Avoid, control, transfer, or retain are the four alternative techniques of…
Risk management
The manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. The manager would normally be considered the agent of…
Owner
A high-rise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent?
Consequential loss, use, and occupancy