California Real Estate Chapter 15

Construction

Real estate agents aren't home inspectors or architects, and they shouldn't give clients or customers the impression that they're experts in residential construction.
However, California law does impose a duty on all licensees to visually inspect the home

Architectural Styles

A real estate agent should be familiar with all of the principal residential architectural styles, or at least all of those that are common to the area.
Architectural style is often one of the main criteria buyers use in deciding which homes they want to

Building Codes and Regulations

Building codes set minimum standards for construction materials, methods, and quality.
Local building codes set forth the minimum construction standards that a new home must meet.
The codes specify the types of materials that may be used in building the h

The Role of the Architect

The architect of a home is involved in nearly every stage of its planning and construction, and can be a valuable source of information.
Understanding the architect's role in housing construction is also a good idea.
When an agent is working with new or r

Plans and Specifications

Plans and specifications are the technical drawings and text that explain in detail how a building is to be constructed.
The plans are drawings of the vertical and horizontal cross-sections of the building.
They show the placement of foundations, floors,

Plans

Detailed technical drawings of the vertical and horizontal cross-sections of a building, used as a guide in its construction.
Drawings of the vertical and horizontal cross-sections of the building.
They show the placement of foundations, floors, walls, ro

Specifications

Text that accompanies the plans of a building, describing the types of materials and the standards of workmanship to be used in the construction.
The text that accompanies the plans, prescribing the type of materials to be used and the required quality of

Wood Frame Construction

The basic elements of wood frame construction include the foundation, framing, exterior sheathing, exterior siding, interior sheathing (drywall), roof, subflooring, finished flooring, plumbing, electrical system, and HVAC.
The most common type of home con

Elements of Wood Frame Construction

It's easier to judge the quality of a home with some knowledge of the elements of construction.
The materials required for each element are usually specified by local building codes.
The following are the basic elements of residential wood frame construct

Foundation

Virtually all modern building foundations are made with reinforced concrete.
Concrete has the advantages of low cost, plasticity, and high compressive strength.
When concrete is reinforced by steel bars or mesh, it also has good tensile strength (resistan

Tensile strength

Resistance to bending or cracking

Footing

The wider part of the base of a foundation wall
It supports the weight of the structure.

Sill plate

A board that's attached to the top of the concrete foundation.
The framing of the house rests on the sill plate.

Framing

The framing is usually constructed of dimensional lumber, although the use of metal framing is becoming more common in some areas,
the structure underlying the floors, walls, ceilings, and roof�is typically made of dimensional lumber such as two-by-fours.

Warpage

The deformity in shape caused by uneven shrinking

Joists

The parallel boards used to support the load of the floor and ceiling

Studs

Vertical members attached to the sole plate, which is a horizontal board that rests on the floor joists.

Load-bearing walls

The walls that provide support
Load-bearing walls support a vertical load, such as a second floor or the roof.
Load-bearing walls are usually built to be stronger than non-load bearing walls, and they are rarely moved during remodeling.
In residential con

Exterior Sheathing and Siding

Exterior sheathing is the covering applied to the outside of the frame.
The most common form of exterior sheathing is plywood panels that are four feet wide by eight feet long.
Plywood serves an additional function by adding shear strength to the walls.
S

Shear strength

The capacity of a wall to resist a sideways racking force, and it's normally provided by corner bracing in the frame.

Interior Sheathing

This is the covering applied to the inside of the frame, on the walls and ceilings.
In the past, the most common form of sheathing was lath and plaster, a cement-like mixture applied over a matrix of wood strips attached to the frame. Modern buildings use

Taping the joints

The joints between panels are hidden by covering them with a strip of tape imbedded in a plaster-like filler.

Roofing

The structural part of the roof is composed of the ridge board (the highest structural member of the house), rafters, and plywood or boards laid perpendicular to the rafters.
This sheathing is then covered with a tar-impregnated paper called roofing felt.

Roofing felt

A tar-impregnated paper

Built up roof

Hot tar is simply interspersed with more layers of felt

Flashing

Metal sheeting

Floor Covering

The strength of the floor is provided by tongue-and-groove floor boards or plywood attached to the floor joists, which is called the subflooring.
The subflooring is then covered with finished flooring, which may be carpet, tile, linoleum, hardwood strips,

Subflooring

Tongue-and-groove floor boards or plywood attached to the floor joists

Plumbing

The plumbing includes drain pipes, supply pipes, fixtures, pipes for the supply of potable water (water suitable for drinking), and drain pipes.
The drain pipes are made of cast iron, concrete, or plastic.
The supply pipes are made of galvanized steel, co

Electrical

Most modern wiring is in the form of cable, which is an insulated cord-like material containing two or more strands of copper or aluminum wire.
The electrical cables are enclosed in metal or plastic piping called conduit.
The electrical cables run in circ

Conduit

The electrical cables are enclosed in metal or plastic piping

Breaker panel

A breaker panel is a series of circuit breakers that automatically shut off the current in a circuit under overload conditions.
Most outlets supply 110 volts of power, except for certain outlets designed for major appliances (ranges, water heaters, dryers

HVAC

(Heating, Ventilating, and Air Conditioning)
These systems are composed of heating and/or cooling appliances that serve warm, cool, or fresh air to the rooms of a house through a series of galvanized sheet metal tubes called ducts.
The ducts open at vario

Ducts

Systems are composed of heating and/or cooling appliances that serve warm, cool, or fresh air to the rooms of a house through a series of galvanized sheet metal tubes called ducts.

Registers

The ducts open at various places in the building called registers.
The registers may be closed off independently in order to direct the heat or air conditioning to areas where it's needed.

EER

(Energy-efficient ratio)
HVAC systems sometimes have an energy-efficient ratio (EER) rating.
The higher the EER, the more efficient the system.

Energy-efficient ratio

**See EER

Insulation

Material that's resistant to the transfer of heat.
It comes in batts or rolls, or in loose form, and it's inserted between wall studs and between the joists of floors and ceilings.
Insulation also comes in sheets that can be secured to the sheathing of th

Structural Pest Problems

Wood frame construction is susceptible to termites, but steps can be taken to prevent this problem.
One major problem with wood frame buildings is their susceptibility to damage by wood-eating insects, especially termites.
Several techniques are used to m

To Rent or to Buy?

Real estate agents are often asked to discuss the relative advantages and disadvantages of renting versus buying a place to live.
Some considerations are primarily emotional, such as security, pride of ownership, and the freedom to have pets or to remodel

Advantages of Renting

The advantages of renting over buying can be briefly summarized. In comparison to buying, renting:
-requires less financial commitment and risk,
-gives a person greater mobility, and
-carries with it fewer responsibilities, and
-may offer amenities that w

Financial Commitment

Compared to the funds necessary to buy a home, the initial cash outlay to rent a home or an apartment is quite modest.
In most cases, a security deposit and one or two months of prepaid rent is sufficient.
Even in conjunction with low-downpayment financin

Financial Risk

Renters have little financial investment in their rented premises and the neighborhood in which they live.
Therefore, there's little financial risk in renting.
If the property values in a neighborhood decline and the neighborhood becomes run down or other

Mobility

It's faster, easier, and cheaper for a renter to move than for a homeowner to move.
A renter can move after giving the required notice or waiting until the lease expires.
Even if a renter has to leave abruptly, any deposit or rent (prepaid or owed under t

Maintenance and Repairs

An owner is responsible for maintaining the property and making any needed repairs.
For a renter, the cost of maintenance and repairs is generally included in the rent.
The renter usually has no direct responsibility for doing maintenance work and making

Amenities

Things that add value to a property, such as tennis courts, a swimming pool, or an exercise room, are called amenities.
Renters often enjoy the use of recreational facilities, such as swimming pools and tennis courts, that are beyond the financial reach o

Advantages of Buying

For many people, buying instead of renting affords both the subjective advantages of security and personal satisfaction and the financial advantages of equity appreciation and tax deductions.
-Real estate agents generally prefer to focus on the advantages

Security

A homeowner enjoys a certain amount of security in knowing that he can continue to live in the home as long as the mortgage payments are made.
A renter has no real security beyond the term of the lease.
When the lease expires, the renter may have to find

Privacy and Freedom from Restrictions

In most cases, a homeowner enjoys greater privacy than a renter and has greater freedom to use the property.
An owner can redecorate or remodel the home to suit her own taste, and can keep pets or engage in other activities that are prohibited by many ren

Monthly Payments

A homeowner's monthly mortgage payment usually starts out higher than the rental payment for equivalent lodging.
However, over time, rents tend to rise at a faster rate than mortgage payments.
This is especially true if the mortgage has a fixed interest r

Investment Appreciation

Appreciation is an increase in value, usually due to economic conditions.
It's impossible to predict whether or how much a particular home will appreciate in value.
As a result of adverse economic conditions, neighborhood decline, or poor maintenance, it

Tax Advantages

For the homeowner, federal income tax laws allow tax deductions for property taxes and for mortgage interest.
The interest paid on a loan secured by a personal residence is the only type of consumer interest that's eligible for deduction from federal inco

Comparison of Renting and Buying

Real estate agents sometimes use worksheets to compare the net costs of renting and buying for prospective customers.
Comparison Worksheet:
A real estate agent can use a comparison worksheet to demonstrate the long-term financial benefits of home ownershi

Factors to Consider When Choosing a Home

When a real estate agent shows a home to a buyer, both the buyer and the seller often rely on the agent to point out the positive features of that home.
So it's important that real estate agents understand what considerations are important to most home bu

Neighborhood Considerations

In choosing a home, a buyer should consider the neighborhood as carefully as the property itself.
Considerations include the owner-occupancy rate; conformity and use restrictions; changing uses; streets; schools; utilities; and public and social services.

Percentage of Ownership

Are most of the homes owner-occupied, or is there a large percentage of rental properties?
Neighborhoods that are predominantly owner-occupied are generally better maintained, less susceptible to loss in value, and more likely to appreciate in value.

Conformity

Values are protected if there's a reasonable degree of homogeneity in the neighborhood.
This includes homogeneity of styles, ages, prices, sizes, and quality of structures.
Private restrictions and zoning, if enforced, promote this type of beneficial conf

Changing Land Use

Does the neighborhood land use appear stable, or are there indications of a transition from residential to some other type of land use?
The value of a home is likely to decline if surrounding properties shift to other types of uses.

Street and Sidewalks

Do the neighborhood streets have good access to traffic arterials?
If a property doesn't front on a publicly dedicated and maintained street, the buyer should ask whether there's an enforceable road maintenance agreement signed by the property owners.
Wha

Availability of Utilities and Public Services

Are all of the basic utilities available, including water, sewer, electricity, gas, and telephone service?
Is there cable television, high-speed internet service, and good cell phone reception?
Are the utility lines above ground, or is there underground w

School District

In what primary and secondary school districts is the neighborhood located?
How far away are the schools?
Are they within walking distance?
The quality of the local schools or school district can make a major difference in value and can be an extremely im

Social Services

Are there places of worship, hospitals or health care facilities, and other social services nearby?

Overall Neighborhood Values

Does it appear that the overall condition of homes in the neighborhood and the property values are stable, improving, or declining?

The Home

Every aspect of the home should be evaluated, including the site and view, the exterior and interior appearance, and the plumbing and electrical systems.
Of course, the home itself�its size, condition, and amenities�should be reviewed with a prospective b

Site/View

First, the agent should look at the lot on which the house is located.
What is the size and shape of the lot?
Rectangular lots are usually more desirable than odd or irregularly shaped parcels.
Is the lot on the corner?
Is it level, gently sloping, or ste

Exterior Appearance

How old is the house, and when was it last painted?
What is the age and condition of the roof and flashing, gutters, downspouts, siding, windows, doors, and weatherstripping?
Thin or curled shingles, cracked, blistered, or peeling paint, and rusted or sag

Plumbing and Electrical Systems

If it isn't a new home, what is the age of the plumbing and electrical systems?
Is the plumbing copper, plastic, or some combination of materials?
Is the water pressure adequate?
Do the electrical service panel and existing outlets indicate that there's s

Heating, Ventilating, and Air Conditioning

What type of heating system does the home have:
-electric,
-gas, or
-oil;
-forced air,
-floor furnaces,
-baseboard heaters
What is the type and size of the water heater?
If there's air conditioning, is it a central system or window units?
If it isn't a ne

Garage/Carport

Generally, a garage is better than a carport.
What is the size of the garage or carport�single, double, or triple?
Is there work or storage space in addition to space for parking?
Is there an entrance, protected from the weather, directly from the garage

Attic/Basement

Is there an attic or a basement?
If so, what type of access is there from the rest of the home?
Is there room for storage or work space?
Would it be possible to convert all or part of the basement into additional bedrooms or living area?
-An attic or base

Energy-Efficient Feature

Escalating energy costs and environmental concerns have created an increased demand for energy-efficient homes.
Examples of energy-efficient features include clock-controlled thermostats, insulation-wrapped water heaters, insulated ducts and pipes in unhe

Overall Interior Design

A real estate agent should know some of the features of a well-designed, efficient floor plan.
For instance, it shouldn't be necessary to pass through the living room to reach other rooms, or to go through one of the bedrooms to reach another.
Other desig

Considerations for Particular Rooms

When evaluating each room, consider the size and shape, and whether the available wall space is adequate for standard furnishings.
Is the paint or wallpaper in good condition?
The number and size of closets and other storage space is important.
Also consi

Living Room/Family Room

How large are the living room and the family room (if there is one)?
Is the shape of each room and the available wall space adequate for the furniture that will be placed in it?

Dining Room or Area

Is the dining area convenient to the kitchen, large enough in relation to the size of the home, and able to accommodate the number of people who will be eating there?

Kitchen

Is the kitchen convenient to an outside entrance and to the garage or carport?
Is there adequate counter and cabinet space?
What is the quality and condition of the kitchen cabinets?
What is the type, quality, and condition of the kitchen floor?
Are any o

Bedrooms

Is the number of bedrooms and their size adequate for the family?
The size of the master bedroom is especially important.
Are the bedroom closets large enough?
It's better for the bedrooms to be located apart from the family room, living room, kitchen, an

Bathrooms

There should be at least two bathrooms if the home has more than two bedrooms.
In many areas, particularly in newer homes, a private bathroom off the master bedroom is standard.
What is the type and condition of the tile or other wall and floor coverings?

Design Deficiencies

Here's a brief list of some of the most common design deficiencies that real estate agents and home buyers should watch out for.
All of these features could be considered design flaws.
Some of the problems are trivial, but they can add up to real inconven

Investing in Real Estate

After buying a home, many people become interested in purchasing real estate as an investment.
They realize that while the value of real estate fluctuates, property that's in good condition and that's located in a good neighborhood will usually increase i

Return

A profit
A return on an investment can take various forms, including interest, dividends, rents, or appreciation

Investment

An investment is an asset that's expected to generate a return (a profit) for the investor in the form of interest, dividends, rents, or appreciation.

Types of Investments

Investments can be divided into two general categories: ownership investments (such as stocks and real estate) and debt investments (such as bonds and loans).
With ownership investments, the investor takes an ownership interest in the asset.
Real estate a

Ownership investments

(Equities)
The investor takes an ownership interest in the asset.

Equities

**See Ownership investments

Debt investment

A loan that an investor makes to an individual or an entity.
Ex. A bond is a debt owed to an investor by a government entity or a corporation.
-With a debt investment, the investor loans money to a person or an entity.
The borrower agrees to repay the mon

Diversify

Investors invest in a variety of different types of investments, instead of putting all their eggs in one basket
-It's generally considered to be a wise strategy for an investor to diversify her investments.
To diversify is to put smaller amounts of money

Portfolio

The mix of investments (plus cash reserves) owned by an individual or a company.
The mix of investments that a person or a company owns, plus any cash reserves

Investment Characteristics

An investor evaluates any investment opportunity in terms of three potential advantages:
1. safety,
2. liquidity, and
3. yield.
(The yield is the investor's total return on the investment.)
These three characteristics are interrelated.
Safety and liquidit

Yield

The investor's total return on the investment
Investments that are both safe and liquid tend to offer the lowest returns. In a sense, investors "pay" for safety and liquidity with a low return.
To get a high return, an investor usually must take the risk

Safety

An investment is considered safe if there's little risk that the investor will actually lose money on it.
Even if the investment doesn't generate the return she hopes for, the investor will at least be able to recover the money she originally invested.
So

Liquidity

A liquid asset is one that can be converted into cash (liquidated) quickly.
Money in a bank account is extremely liquid: to convert it into cash, the investor has only to present the bank with a withdrawal slip or check.
Mutual funds, stocks, and bonds ar

Advantages of Investing in Real Estate

People invest in real estate for many reasons. The advantages of investing in real estate can be broken down into three general categories:
-appreciation,
-leverage, and"
-cash flow
-In addition, real estate investment has certain tax benefits

Appreciation

An increase in the value of an asset, either due to inflation, or due to rising demand for that asset.
When an asset increases in value.
Appreciation may be due to inflation, or it may occur because the asset is becoming scarcer or demand for it is increa

Leverage

Using borrowed money to invest in an asset.
If the asset appreciates, the investor earns money on the borrowed funds as well as the funds she invested.
Real estate investors can take advantage of leverage, which means using borrowed money to invest in an

Cash Flow

Spendable income; the amount of money left after all of the property's expenses have been paid, including operating costs, mortgage payments, and taxes.
Many real estate investments generate a positive cash flow, in addition to appreciating in value.
Cash

Sale-leaseback

The owner of a building (typically a commercial property) sells the building to an investor, but then leases the property back from the investor and continues to use it.
The money generated by the sale can be used for expansion, acquiring inventory, or in

Buyback

When it's agreed that the seller will buy the property back for its fair market value after a certain number of years

Cash on cash

A property's first year cash flow divided by the initial investment

Tax Benefits

The tax benefits of real estate investment include reducing the amount of taxes owed with deductions for depreciation, mortgage interest, and operating expenses; and deferring payment of taxes with tax-free exchanges and installment sales.
-The federal in

Disadvantages of Investing in Real Estate

Real estate investments can be a mixed blessing.
The disadvantages of real estate as an investment are the need for expert advice, the need to manage the property, lack of liquidity, and a significant degree of risk.
There are some disadvantages to real e

Choices When Investing in Real Estate

There are basically two ways to invest in real estate.
One way is to purchase property as an individual investor.
The other way is to invest in real estate indirectly, by putting money into an investment syndicate, buying securities, or making or buying m

Buying Real Estate as an Investment

An investor who decides to purchase real estate directly must first decide what type of property to invest in, and then which particular piece of property to purchase.

Types of Properties

There are many types of real estate for an investor to choose from.
There are residential properties (including single-family homes, duplexes, triplexes, four-plexes, townhouses, condominiums, and apartment buildings), office properties, retail properties

Qualities to Look For

Buying a rental property is often simpler than buying a home�it's a business decision rather than an emotional decision.
When a family purchases a home, it looks for a house that fits its lifestyle and satisfies its emotional needs.
On the other hand, a r

Property Management

A real estate investor may need to hire a property manager to oversee day-to-day operations of a large property.
The duties of a property manager can include maintaining the property, performing repairs and periodic property inspections, handling tenant c

Indirect Real Estate Investment

Instead of buying property herself, an investor could put money into a real estate investment syndicate.
Investors purchase interests in the syndicate, which uses the investment capital to buy and develop property.
A syndicate may take the form of a partn

Real estate investment syndicate

A group of people or companies who join together to purchase and develop real estate.
Investors purchase interests in the syndicate, which uses the investment capital to buy and develop property.
A syndicate may take the form of a partnership, a joint ven

REIT

(Real estate investment trust)
A real estate investment business that qualifies for tax advantages if certain requirements are met.

Mortgage-backed securities

Another alternative for investors is buying mortgage-backed securities issued by one of the secondary market agencies such as Fannie Mae, or by a private entity.
Mortgage-backed securities are investment instruments that use pools of home mortgages as col

REMIC

(Real estate mortgage investment conduit )
A business entity that purchases and securitizes mortgage loans, and that qualifies for tax advantages if certain requirements are met.

Equity

The difference between the value of a property and the liens against it.

1. In building construction, standards of construction quality are assured through:
A. the planning commission
B. zoning ordinances
C. building codes
D. None of the above

C. building codes

2. All of the following are likely to go up eventually; which of them will probably increase most gradually?
A. A rental payment
B. A fixed-rate mortgage payment
C. An adjustable-rate mortgage payment
D. All of the above will increase at the same rate

B. A fixed-rate mortgage payment

3. All of the following lots contain the same area. Which would generally be considered the most desirable?
A. A rectangular lot with a gentle slope
B. A triangular lot with a steep slope
C. A triangular lot with a gentle slope
D. A level T-shaped lot

A. A rectangular lot with a gentle slope

4. Which of the following is considered a drawback in a floor plan?
A. A door leads directly from the kitchen to the garage
B. The front door leads directly into the living room
C. The separate dining room is right next to the kitchen
D. The bedrooms are

B. The front door leads directly into the living room

5. The value of a home is enhanced if:
A. there are rental properties in the neighborhood as well as owner-occupied homes
B. there are retail businesses as well as homes on the block
C. strict zoning laws have made the lots and houses in the neighborhood

C. strict zoning laws have made the lots and houses in the neighborhood similar to one another

6. When comparing a mortgage payment to a rental payment, all of the following should be taken into account except:
A. the landlord's equity in the rental property
B. appreciation of the homeowner's property
C. the federal tax deduction for mortgage inter

A. the landlord's equity in the rental property

7. A house with many horizontal projections and vertical lines, and with large areas of glass, is classified as:
A. contemporary
B. ranch
C. colonial
D. Spanish

A. contemporary

8. Which of the following is an advantage of renting, as opposed to owning, a home?
A. Security and stability
B. Appreciation
C. Federal tax deduction
D. Mobility

D. Mobility

9. Which of the following isn't drywall material?
A. Wallboard
B. Plywood
C. Sheetrock
D. Plaster

D. Plaster

10. R-value is a term used in reference to:
A. a type of loan
B. a zoning classification
C. a government agency
D. insulation

D. insulation

11. The mix of investments owned by an individual or a company is known as:
A. a portfolio
B. leverage
C. a yield
D. equity

A. a portfolio

12. Martinson's investments consist of $20,000 in a money market account, $7,000 in a savings account, and $52,000 in certificates of deposit. Martinson's main investment concern is probably:
A. a high return
B. liquidity
C. safety
D. Both b) and c)

D. Both b) and c)

13. One major disadvantage of investing in real estate is:
A. the use of leverage to increase returns
B. lack of liquidity
C. uniformly low returns
D. the fact that a constantly increasing supply decreases values

B. lack of liquidity

14. What do stocks, real estate, and investment in a real estate investment trust all have in common?
A. They are all liquid investments
B. They are all very safe investments
C. They all provide safe, but low, returns
D. They are all ownership investments

D. They are all ownership investments

15.The difference between the value of real property and the liens against it is:
A. equity
B. leverage
C. yield
D. cash flow

A. equity

Board foot

Lumber is customarily measured by the board foot. One board foot of lumber measures one foot by one foot, and is one inch thick.

Soil problems

Another important consideration in construction is the quality of the soil on which the house will be built.
Before construction, it is customary for the builder to perform a percolation test.
This measures the soil's ability to absorb and drain water
If

Interest

Essentially a fee paid to the investor by a borrower for the use of the investor's money.

Dividends

A share of the earnings of a business enterprise (such as a corporation).
They are paid to an investor who has contributed capital to the enterprise.

Real estate investment syndicates

Two or more individuals may join together to create a business entity to purchase and develop a piece of real estate as an investment.
This is called a real estate investment syndicate.
A real estate investment syndicate may be a partnership, a corporatio

Private lending

Another method of real estate investment is private lending: when an individual investor makes mortgage loans that enable others to buy property.
Depending on the extent of her activities, a private lender in California may be required to have a real esta

Buying an investment property

Now let's turn from indirect methods of real estate investment to direct investment: buying an investment property.
An investor who decides to invest in real estate directly first has to choose what type of property to purchase.
Residential properties inc

Insurance

Like any owner, an investor who buys a rental property needs insurance coverage to protect herself against loss from fire and other hazards.
The owner pays the monthly premiums and, in exchange, the insurance company will compensate her for any losses tha

Indemnification

Insurance removes an element of uncertainty from property ownership by transferring the risk of loss from the insured owner to an insurance company.

Short-rated

A portion of the prepaid premium will be returned to the insured, based on a uniform schedule approved by the Insurance Commissioner.

Odds and Ends to Remember when Investing in real estate

-Using equity to finance a property means using the purchaser's own cash to purchase the property, rather than borrowed funds.
-Management decisions regarding income property are ultimately controlled by the owner (who is sometimes called the equity inter

Equity interest

The owner

Anchor

The key tenant in a shopping center is called an anchor tenant, and is typically a large and well-known retailer.
The identity of the anchor tenant is a major consideration for a lender who is financing the project.
-A retail development that follows a ma

Strip commercial development

A retail development that follows a major arterial route in a straight line

Walk-up building

An apartment building without an elevator

Turnkey project

A completed construction project that is ready for occupancy by its buyer or tenant