Week 3 Real Estate Leases

Question 1 of 35
1.0 Points
1. A gross lease is where tenants pay all expenses

True False

Answer Key: False

Question 2 of 35
1.0 Points
2. The term “usable area” is typically synonymous with “leaseable area.”

True False

Answer Key: False

Question 3 of 35
1.0 Points
3. Expense stops protect the lessee from unexpected changes in market rents.

True False

Answer Key: True

Question 4 of 35
1.0 Points
4. The sales comparison approach to appraisal is preferred because it is the only objective appraisal approach.

True False

Answer Key: False

Question 5 of 35
1.0 Points
5. When conducting an appraisal, only one of three approaches should be selected to determine the property value.

True False

Answer Key: False

Question 6 of 35
1.0 Points
6. In the cost approach to value, land value can be estimated by comparing sales of vacant land that are similar to the subject land.

True False

Answer Key: True

Question 7 of 35
1.0 Points
7. A gross income multiplier can be calculated by dividing the gross income by the sales price

True False

Answer Key: False

Question 8 of 35
1.0 Points
8. A property is purchased for $350,000. Based on an annual growth rate of 3%, the resale value at the end of year 10 would be $456,671

True False

Answer Key: False

Question 9 of 35
1.0 Points
9. The market method or direct sales comparison method of estimating site value is not the most reliable method available.

True False

Answer Key: False

Question 10 of 35
1.0 Points
10. Appraisers use bracketing in order to estimate the upper and lower range of value

True False

Answer Key: True

Question 11 of 35
1.0 Points
11. The sales comparison approach to appraisal is preferred because it is the only objective appraisal approach

True False

Answer Key: False

Question 12 of 35
1.0 Points
12. When conducting an appraisal, only one of three approaches should be selected to determine the property