Real Estate Chapter 13 Quiz

<p>Based on the effect on comparable properties (B)</p> Signup and view all the answers

<p>Only make rent payments (A)</p> Signup and view all the answers

<p>Fee simple interest (B)</p> Signup and view all the answers

<p>Income approach (D)</p> Signup and view all the answers

<p>By considering factors affecting the value of the interest (C)</p> Signup and view all the answers

<p>Equal to the annual rent under the lease (C)</p> Signup and view all the answers

<p>Collective ownership structure (D)</p> Signup and view all the answers

<p>Examine similar easements on comparable properties (D)</p> Signup and view all the answers

<p>They function like cooperative housing (A)</p> Signup and view all the answers

<p>A complete ownership interest (A)</p> Signup and view all the answers

<p>Vertical subdivision (C)</p> Signup and view all the answers

<p>Utility companies (C)</p> Signup and view all the answers

<p>Mortgage (D)</p> Signup and view all the answers

<p>The landlord had to make special concessions in the original lease agreement (D)</p> Signup and view all the answers

<p>Index lease (D)</p> Signup and view all the answers

<p>Rent only, as all expenses are covered by the landlord (C)</p> Signup and view all the answers

<p>A shared interest in the overall property with no individual ownership of units (D)</p> Signup and view all the answers

Determining the value of ownership or rights in a property that is leased, considering factors like the lease terms' relation to market values.

Evaluating property value when ownership is not complete (e.g., fractional, limited) considering how the partial interest affects use and disposition and comparable sales of similar partial interests.

The bundle of rights (ownership, use, and disposal) of a specific portion of airspace in a condominium project.

A type of housing development with multiple housing options (e.g., houses, condos) in a planned community.

Value of the property that corresponds to the fee interest remaining after the lease is factored in. It is equivalent to the value of the full property less the value of the leasehold interest.

Evaluating how an easement (limitation on property use/access rights), imposed onto the property, impacts its overall market value by considering limitations, benefits, and local market comparisons and/or impact of similar easements in similar locations

The most reliable method for analyzing a property's market value

Individual residents own a direct ownership interest in real estate.

Selling ownership rights to airspace above the land as in condominium units.

Residents have a proprietary lease on their unit, all residents own the same number of shares in the corporation.

The value of the whole is not the most important factor, instead factors like partial ownership are considered more important.

Full ownership of the unit, not the entire building.

In most cases, appraisers assess a complete ownership interest or a leasehold interest in a property.

Selling units in a multi-story building exemplifies a vertical subdivision.

Easements in gross are frequently held by utility companies or other entities that do not own the land.

A lender's security interest, which encumbers a borrower's property, is called a security interest, not a lease or easement.

Differences in contract and market rent often stem from concessions in original leases or changes in market conditions.

An index lease allows for periodic rent adjustments based on market value changes.

In a gross lease, the tenant is typically responsible only for making monthly rent payments.