R.Practice 1.3

What's the best definition of real property?

• Artificial attachments to land that include things such as fencing, buildings, and walkways

• Earth, soil, and air

• Land, plus all things permanently attached to it naturally or artificially

• Real estate, plus all of the interests, benefits, and rights included in ownership

Which type of loan has a lump sum payment due at the end of the loan because the installment payments aren't sufficient for paying off the principal and interest?

• Balloon mortgage

• Growing equity mortgage

• Pledged account loan

• Swing loan

To whom would a 1031 tax exchange usually appeal?

• Investors

• Retailers

• Traditional homebuyers

• Wholesalers

Payden sold his home and made a nice profit. His real estate agent told him he can offset his capital gains from what home costs?

• Capital improvements

• Fire mitigation

• New bathtub

• Utilities

Tyrell and Barb bought a commercial investment property in 2009 during the real estate market downturn. Through what year will they be able to depreciate the investment?

• 2019 depreciation for 10 yrs

• 2029 depreciation for 20

• 2039 depreciation for 30 yrs

• 2048 depreciation for 39 yrs

What's a special assessment?

• A levy local government applies to individual parcels of real estate that will benefit from road or other infrastructure improvements

• The amount of property value to which the tax rate is applied

• The probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership

• The tax rate which is applied to an assessed value

When must Karen, a sales associate, deliver the escrow funds to her broker if she receives the funds on a Friday?

• By the end of the following week

• End of day Saturday

• End of the business day on Monday

• The end of the day Friday

The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral is called the ______ rate.

• Discount

• Federal funds

• Fixed

• Prime

The _______ value affects a property’s income tax basis

• Assessed

• Depreciated

• Investment

• Market

The fewer properties on the market, the greater the scarcity. What's the effect on prices?

• Prices are pushed downward.

• Prices are pushed upward

• Prices remain the same.

• There's no correlation between scarcity and price.