When it is necessary to correct general dissimilarities in statewide tax assessments, uniformity may be achieved with the use of
an equalization factor
A specific parcel of real estate has a market value of $80,000 and is assessed for tax purposes at 25 percent of market value. The tax rate for the county in which the property is located is 30 mills. The annual tax bill will be
$600
Taxes levied based on the value of the property are known as
ad valorem taxes
An investor bought a factory as an investment. The property cost $405,000. He took out a loan of $365,000 and must pay annual property taxes of $13,200. After buying the property, he made various improvements totaling $35,000. The investor now hopes to re
$405,000
For tax purposes, in an installment sale of real estate, the taxable gain is received and must be reported as income by the seller
in each year during which the installment payments are being received
What is the annual real estate tax on a property values at $135,000 and assessed for tax purposes at $47,250 with an equalization factor of 125 percent and a tax rate of 25 mills?
$1,477
After real estate has been sold by the state or county to satisfy a delinquent real estate tax lien, depending on state law, the former owner may have the right to
redeem the property within the time period set by law
A couple has just sold their property. The type of tax based on the sales price of their property and charged as a cost of conveying the property is called the
Transfer tax
A couple has just sold the home they have lived in for the past 25 years for a profit of $400,000. If they file their income taxes jointly, they will be able to take advantage of the capital gains tax exclusion of
$500,000
The MOST likely recipient of an exemption from the payment of real estate taxes would be a
County courthouse
A single woman bought her home 18 months ago and has found a new job in another city. A married couple who file jointly have owned their nine-bedroom home for only three years but now plan to move to a small condominium unit. A single man has owned his ow
The married couple and the single man
When calculating the depreciation on an apartment building that sits on a valuable piece of land, the person preparing the calculation must understand that
Only the building itself can be depreciated
The initial cost of an investment property, plus the cost of any subsequent improvements, minus any depreciation, represents the investment's
Adjusted basis
A local municipality is levying a tax for the installation of curbs and gutters along a road. The type of tax levied and collected from the homeowners who live along that road is called a(n)
Special assessment
In their first year of homeownership, new homeowners will be able to deduct
mortgage interest paid each month, real estate taxes paid twice during the year, and any discount point paid at settlement
Who is usually exempt from paying real estate taxes?
Hospitals
What is the first step in the process of determining real estate taxes?
Adopt a budget
Because a property owner has not paid his property taxes for three years, a tax sale has been ordered. The owner has been told that he can redeem the property before the sale under
The equitable right of redemption
All the property owners in a neighborhood have formed a group and asked the county to install street lighting down their street. The county has agreed to make the improvements, but the property owners must pay for the installation. The county will raise t
Special assessment
A couple purchased their first and only home in 1971 for $35,000. They recently sold their home for $545,000 in order to move into an assisted living facility. How much of this sale is subject to a capital gains tax?
$10,000
A rental home rents for $15,000 per year in a community where the gross rent multiplier is 125. The value of the rental property is
$156,250
An appraiser has used the market data, the cost, and the income approach to value to appraise an apartment building. The appraiser's analysis and effective weighing of the findings to develop the final value estimate is called
reconciliation
The owners of an old, four-story office building are having difficulty selling the property because the building does not have an elevator. This loss of property value would be due to
functional obsolescence
An appraiser is using the cost approach to estimate the value of an historic property. The appraiser will NOT consider the
Price the seller paid for the property
When determining the effective gross income of a property, the appraiser would consider all of the following items
potential gross income, vacancies, collection losses
A developer has purchased all the individual homes on one block in order to have a large contiguous property where the developer can build town houses. This action is called
plottage
When an improvement is new and represents the highest and best use of the property, the cost would usually equal the
market value
A small shopping mall has a capitalization rate of 9 percent and a value of $270,000. If a cap rate of 10 percent were used instead, the value of the property would become
$243,000
The appraisal value that holds the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable property is
Substitution
A renovating company has a contract for work on an historic home. They will exactly duplicate the large fireplace in the kitchen area so that is can be use to both heat the home and to cook food. This duplication of both the function and the form of an im
Reproduction
The owner of a large piece of land would like to sell it. Unfortunately, the land is located adjacent to the city sewage treatment plant. The value of this property will be affected by the incurable type of depreciation called
External obsolescence
The tenants who live in a 75-year old apartment building have pleaded with the landlord to install central air-conditioning. After receiving three cost estimates for upgrading the electrical system for central air, the landlord realizes that the rents cou
Contribution
An appraiser using the cost approach to value for a private boarding school will most likely use the most common method of cost estimation called the
square-foot method
One problem that occurs when a homeowner decides to add a 1,200 square-foot, two-story addition plus garage to the home in a neighborhood of small one-story ranch-style homes is that the value of this property will be harmed because of the impact of
Regression
The effective gross annual income for an office complex is $250,000. Total expenses for this year are $175,000. Using a capitalization rate of 10 percent, the property is valued at
$750,000
Demand is necessary for a property to have
Value
The market value of a newly constructed home is most likely very similar to its
Cost
The first few homes constructed in a subdivision were much smaller than those built at the end of the building phase. However, buyers are still willing to pay more for these smaller houses than for a larger one in a different subdivision. This is an examp
Progression
Which of the following is considered an acceptable comparable sale?
Out-of-town buyer choose the home after viewing ten homes
A rumor is circulating that the largest employer in the are is planning to shut its doors. Sellers are finding it difficult to get their asking prices due to what principle of value?
Anticipation
The phrase best available space describes what type of building?
Class A
What is the primary factor that changes the classification of an office building?
Time
Tenants who rarely have clients visit them may be interested in what type of building/
Class C
A "smart" building might have what services?
T1-T3 lines, fiber optics, cable lines
Rentable square footage is the amount of space
billed to the client
A loss factor
increases the cost to rent
What is it called when a landlord allocates money to build out a new tenant's space?
Tenant improvement allowance
A right of first refusal
permits an existing tenant to buy the building, can cost a broker the commission, can cause an offer to be rejected
What is used to calculate the cost of space per month?
Rentable square footage and total rent per square foot
In a triple net lease (NNN), the landlord pays
no real estate taxes or building insurance, and does not pay for structural repairs
What type of store would be an anchor tenant?
Department store
What is an advantage of renting an end cap?
additional signage, possible drive-through, greater visibility
A doughnut shop might request what type of location?
AM side of the road
If tenants desire to finish the interior construction of a store themselves, they request to lease space of what basis?
Plain vanilla shell
Which of the following can affect the type of business that will rent a specific store?
Higher parking requirements for different uses
What type of report provides population and medium household income information?
Demographics
What alternative type of lease would be used only for retail tenants?
Percentage
What is the main value of an anchor tenant to a landlord/
Draws other tenants to the site
A building divided into five to ten stores is known as a
Strip center
When listing a retail store for rent, the agent should pay particular attention to the
tenant mix
How is ceiling height referred to in industrial buildings?
Under steel
Customers who park vehicles in their buildings are concerned with
columns
A declining plane or ramp indicates what type of load facility?
Tail-board
Industrial buildings typically provide what percentage of office space?
10 percent
What technical services might you find in an industrial building?
ISDN, T1-T3, Fiber optics
A historical site review would be found in what level of environmental report?
Phase I
Remedies for environmental problems might include
capsulation, dong nothing (status quo), removing contaminated soil
Which types of building is considered industrial?
Flex space, R&D, Distribution
To list an industrial building, what forms do you need?
Building checklist, listing agreement, listing information checklist
What is essential to note on a site inspection?
Where the building is located on the site
Capital gains taxes are applicable to
commercial buildings, the investor's personal residence, investment properties
The sale of an investor's personal residence
may allow an exclusion of $250,000 for single taxpayers
The depreciation recapture tax is
25 percent
On appreciation of a commercial building, tax-payers in the 28 percent tax bracket must pay a capital gains tax of
15 percent
A qualified intermediary is licensed by
neither federal, state, or local county government
A 1031 exchange _______ capital gains taxes.
eliminates
Who may NOT serve as a qualified intermediary if they have done business with the taxpayer in the last two years?
Accountants, attorneys, real estate agents
For a full deferral of capital gains taxes, what must be "equal to or greater than"?
value, equity, debt
In order to do a 1031 exchange, the new property must be acquired with ____ days from the start of the exchange transaction.
180
In a 1031 exchange, the replacement property must be declared within ____ days after transfer of the relinquished property.
45
Soil sampling and laboratory analysis are included in what phase of environmental
inspections?
Phase II
The process by which an appraiser assigns weights to each of the comparable sales is called
the
reconciliation
1031 Exchanges must be completed within
180 days
What is considered an acceptable comparable use?
Out-of-town buyer chooses the home after
viewing ten homes
What class of office building is "the best available space"?
Class A
What type of tenant draws people to a shopping area?
Anchor tenant
A local municipality is levying a tax for the installation of curbs and gutters along the road. The type of tax levied and collected from the homeowners who live along that road is called
a(n)
...
What allows a tenant to match a purchase offer and buy the building herself?
...
In commercial buildings, CAM is usually charged to
...
Long term capital gains applies to properties held for
...
The appraisal value that holds the maximum value of a property tends to be set by the cost of
purchasing an equally desirable and valuable property is
...
In a lease, the ability for a landlord to pass increases in real estate taxes to tenants is known
as
...
A developer has purchased all the individual homes on one block in order to have a large
contiguous property where the developer can build town houses. This action is called
...
How much space would a tenant have to pay for if the net usable area is 2,200 square feet,
and the owner uses an add-on factor of 18 percent?
...
An appraiser using the cost approach to value for a private boarding school will MOST likely
use the common method of cost estimation called the
...
Using a 1031 exchange procedure
...
When a landlord allocates money for interior construction of a tenant's space, it is known as a
...
The owners of an old, four story office building are having difficulty selling the property
because the building does not have an elevator. This loss of property value would be due to
...
Remedies for environmental programs might include
...
Marketing buildings for sale by a cost per foot is unique to
...
The initial cost of an investment property, plus the cost of any subsequent improvements,
minus any depreciation, represents the investment's
...
An exclusion of $250,000 for single taxpayers may be applicable to
...
Special assessments are apportioned based on
...
What causes a Class A office building to be reclassified as Class B?
...
Short term capital gains are taxed at
...
In order to determine the market value of a parcel of real property, the appraiser assumes
that
...
When calculating the depreciation on an apartment building that sits on a valuable piece of
land, the person preparing the calculation must understand that
...
A building has total tenant income of $221,217 and the owner's operating expenses are
$89,410; if all the leases are Triple Net (NNN), what is the NOI?
...
What type of agreement is necessary to protect a broker's future commissions in the event a
building is sold?
...
Using the total rent per square foot calculated in the prior problem, if the tenant occupies
2,500 gross square feet, what does the space cost per month? (Round off to closest dollar.)
...
What is the rentable square footage, given 1,700 net usable square footage and a loss factor
of 15 percent?
...
The phrase 'best available space' describes what type of building?
...
The owner of a large piece of land would like to sell it. Unfortunately, the land is located
adjacent to the city sewage treatment plant. The value of this property will be affected by the
incurable type of depreciation called
...
Real property tax assessments
...
When determining the effective gross income of a property, the appraiser would consider all
of the following items EXCEPT
...
Demographic information is usually stated on a commercial advertising flyer for what type of
property?
...
The cost of common services provided by the landlord are often passed through to the tenant
as
...
An appraiser is using the cost approach to estimate the value of a historic property. The
appraiser will NOT consider the
...
What is primarily used to verify representations made when selling a "cash" business
...
What might prevent a business from occupying a specific store?
...
A small shopping mall has a capitalization rate of 9 percent and a value of $270,000. If a cap
rate of 10 percent were used instead, the value of the property would become
...
Real Property taxes are due and payable on June 5 and December 5 of each year in Dirtpo
County, Virginia. A closing is conducted on property in Dirtpo on June 15, 2012. Seller paid
the taxes on June 5. Which of the following is true?
...
A building with a "clear span" has no
...
The effective gross annual income for an office complex is $250,000. Total expenses for this
year are $175,000. Using a capitalization rate of 10 percent, the property is valued at
...
For tax purposes, in an installment sale of real estate, the taxable gain is received and must
be reported as income by the seller
...
In a 1031 exchange the "equal to or greater than" rule applies to
...
R&D is considered what type of commercial property?
...
A renovation company has a contract for work on an historic home. They will exactly
duplicate the large fireplace in the kitchen area so that it can be used to both heat the home
and to cook food. The duplication of both the function and the form of an im
...
When an improvement is new and represents the highest and best use of the property, the
cost would usually equal the
...
Jesse owns his principal residence in Blacksburg, a home that his mother lives in located
right along the Apple Blossom parade route in Winchester, a condo on the strip in Vegas, and
4 rental properties. He does not rent the Vegas condo (using it personal
...
The combined total rentable square footage of all buildings and/or rentable floors in a
shopping center, office complex or other type of building is known as
...
On appreciation of a commercial building, taxpayers in the 28% tax bracket must pay a
capital gains tax of
...
A loading dock may take the appearance of a
...
After all adjustments are made to a comparable property, its comparative value for appraisal
purposes is known as its
...
Qualified intermediaries are
...
What documents provide information in "rings"?
...
When it is necessary to correct general dissimilarities in statewide tax assessments,
uniformity may be achieved with the use o
...
A couple has just sold the home they have lived in for the past 25 years for a profit of
$400,000. If they file their income taxes jointly, they will be able to take advantage of the
capital gains exclusion of
...
Which approach is most appropriate in appraising a church?
...
A tailboard may take the appearance of a
...
The depreciation recapture tax is
...
When a company finishes the interior of all their stores the same way, it may request what
type of lease basis?
...
What is the main value of an anchor tenant to a landlord?
...
In a 1031 exchange, the replacement property must be declared within _____ days after the
transfer of the relinquished property.
...
A store that does considerable advertising and draws people to the entire shopping center is
...
In a strip center, stores with "drive thru" capability are called
...
What type of lease is unique to retail businesses?
...
A couple has just sold their property. The type of tax based on the sales price of their
property and charged as a cost of conveying the property is called the
...
How is building height referred to in industrial buildings?
...
A rental home rents for $15,000 per year in a community where the gross rent multiplier is
125. The value of the rental property is
...
An appraiser has used the market data, the cost, and the income approach to value to
appraise an apartment building. The appraiser's analysis and effective weighting of the
findings to develop the final value estimate is called
...
A landlord charges base rent of $18.00 per square foot, $2.50 per square foot for electric
service, and $1.75 per square foot for common area maintenance. What is the total rent per
square foot?
...
A specific parcel of real estate has a market value of $80,000 and is assessed for tax
purposes at 25 percent of the market value.The tax rate for the county in which the property
is located is 30 mills. The annual tax bill will be
...
A high return/low risk mixed housing portfolio (based on 1981 through 2005) would utilize a
strategy based on
...
The impact of the digital economy on big box retail assets is likely to
...
The digital economy will likely impact office space markets in the US by
...
Cities with locational advantages for commercial real estate related to the digital economy
have the following in addition to being early locations connected to high speed fiber optic
networks and broadband infrastructure development:
...
Riverhouse, Rockville Town Square and Southborough are examples of
...
One Arts Plaza is an example of
...
Bergognone 53 illustrates the importance of
...
The Blackstone (Chicago) represents
...