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Question 1

Clauses in a deed limiting the future uses of the property. May impose a variety of limitations and conditions, such as limiting them density of buildings, dictating the types of structures that can be erected, and preventing buildings from being used for specific purposes.

Answer 1

Deed restrictions

Question 2

Generally enforced by a homeowners association or by a property owner who is affected

Answer 2

Deed restrictions

Question 3

Lease for a definite period of time terminating automatically without notice by either party.

Answer 3

Tenancy or estate for years.

Question 4

Lease for an indefinite period of time without a specific expiration date; notice must be given to terminate.

Answer 4

Tenancy from year to year or periodic estate.

Question 5

Lease that gives the tenant the right to possess with the consent of the landlord for an indefinite period of time; terminated by either party giving notice or by the death of either he landlord or the tenant.

Answer 5

Tenancy at will

Question 6

Tenant continues to hold possession without the consent of the landlord.

Answer 6

Tenancy at sufferance or holdover tenancy.

Question 7

Tenant pays fixed rent, while landlord pays all taxes, insurance, etc.

Answer 7

Gross/fixed lease

Question 8

Tenant pays rent plus all or part of property charges.

Answer 8

Net lease

Question 9

Usually provides for minimum fixed rent plus a percentage of the portion of tenants business income that exceeds a stated minimum.

Answer 9

Percentage lease

Question 10

Provides for specified rent increase at set future dates.

Answer 10

Graduated lease

Question 11

Allows rent to be increased or decreased periodically based on agreed index, such as the change in the government cost of living index.

Answer 11

Index lease.

Question 12

Items installed by a commercial tenant according to the terms of a lease and removable by the tenant before the expiration of the lease - personal property.

Answer 12

Trade fixtures.

Question 13

If not removed, the trade fixture becomes

Answer 13

Real property by accession.

Question 14

Used in many ways in real estate including: access with which a property can be viewed by a buyer or renter, access to commercial properties, or access to living or working in a building for people with disabilities.

Answer 14

Accessibility/ADA requirements

Question 15

Allows investor to recover cost of asset through tax deductions over useful life of asset.

Answer 15

Tax depreciation

Question 16

Tax depreciation may only be deducted if

Answer 16

Property produces income or is used in trade or business.

Question 17

Takes equal periodic amounts over an assets useful life.

Answer 17

Straight line depreciation.

Question 18

Losses may be deducted by investors in certain circumstances, and tax credits are allowed for renovation of older buildings, historical properties, etc.

Answer 18

Tax deductions

Question 19

Payments received are taxed only on profit portion, interest received is taxed as ordinary income.

Answer 19

Installment sales

Question 20

Method of deferring taxation of capital gains.

Answer 20

IRS form 1031

Question 21

Any additional property or capital needed to even out the exchange is called

Answer 21

A boot.

Question 22

Boot is taxed at

Answer 22

The time of the exchange.

Question 23

Net spendable income from the investment calculate by deducting all expenses from the gross income

Answer 23

Cash flow

Question 24

Amount of income that remains after subtracting all the commissions from the gross income.

Answer 24

Company dollar

Question 25

Revenue earned from all sources, including sales, appraisals, management fees, etc.

Answer 25

Gross income

Question 26

A quantified business plan

Answer 26

Budget

Question 27

Mechanism through which a broker can design a firms activities and assign dollar costs and anticipated revenues to their implementation

Answer 27

Budgeting process

Question 28

Requires that all budgeted costs for the planning period be justified each time a new budget is developed

Answer 28

Zero base budgeting

Question 29

Cost of providing an opportunity for salespeople to conduct business is calculated by dividing the total operating expenses of the firm by the number of salespeople.

Answer 29

Desk cost

Question 30

A written instrument given to pass title to personal property.

Answer 30

Bill of sale.