A group of investors bought property and developed a movie production studio. After a few years in business, the state passed regulations limiting the
... [Show More] amount of tax incentives it would offer film studios shooting movies in the state. This move caused several companies to move their shooting to other states, jeopardizing the investors' ability to earn the return they were expecting. What type of risk is this?
-Capital
-Dynamic
-Environmental
-Static - Dynamic
Which of the following properties has the best chance for good appreciation in the relatively short term?
-A piece of land in a remote mountain community
-A piece of land in the middle of nowhere
-A piece of land near a highway
-A piece of land on the outskirts of town, along a small dirt road - A piece of land near a highway
Which of these statements best describes value in use?
-How much the property is worth to its owner as it's currently used
-The gross operating income for a property used as a rental
-The value the county assessor places on the property based on how it's used
-The value the property could achieve through highest and best use - How much the property is worth to its owner as it's currently used
Which of the following scenarios describes an example of unilateral rescission?
-A sales transaction falls through when Nora, the buyer, doesn't qualify for financing.
-Bobby, the buyer, makes an offer on a house that doesn't meet the appraisal contingency. He cancels the sale.
-Buyer Alice decides to join the Peace Corps. She and the seller mutually agree to cancel the sale, and the seller keeps Alice's earnest money.
-Sally, the seller, sells her property to two different buyers. Both buyers sue Sally for specific performance. - Bobby, the buyer, makes an offer on a house that doesn't meet the appraisal contingency. He cancels the sale.
Which type of net lease sometimes requires a tenant to pay the interest payments on the lessor's mortgage on the property in addition to base rent?
-Double net
-Net
-Quadruple net
-Triple net - Triple net
Brandon recently purchased an old warehouse building. This building will serve as a hub for local deliveries of fruits and vegetables within the state. During its first week in operation, one of the delivery drivers was involved in an accident that spilled coconuts all over the road and shut down the interstate for hours. What type of risk is this?
-Capital
-Dynamic
-Environmental
-Static - Static
(Static risks are those where the effect can be lessened with insurance. This includes vandalism, theft, fire, and accident liability.) [Show Less]