Download Commercial Real Estate: Exam Questions and Answers for SAE CHAMPIONS and more Exams Real Estate Management in PDF only on Docsity!
Estate (SAE) CHAMPIONS Exam Questions
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Diplomacy - correct answer ✅the ability to handle clients and situations in a sensitive and effective way - is critical in commercial real estate, and a lack of it can expose you immediately as a beginner. Deceptive Trade Practices Act (DTPA) - correct answer ✅Texas law that was passed in 1973. It allows an aggrieved consumer to sue a seller of goods for damages. The act by the seller of the goods has to be deceptive or unfair for the consumer to successfully sue for monetary damages. CCIM (Certified Commercial Investment Member) - correct answer ✅established in 1954 to give commercial real estate practitioners an opportunity to further their business practices through education and networking opportunities. The institute administers the Certified Commercial Investment Member designation. "Gold Standard" ICSC (International Council of Shopping Centers) - correct answer ✅The purpose is to advance the shopping center industry and to promote its role in the commercial distribution of consumer goods and services.
Estate (SAE) CHAMPIONS Exam Questions
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Comprehensive database - correct answer ✅This will be one of the greatest assets of your business. Pick a geographical region to farm, and assemble a database of properties and property owners. Canons of Professional Ethics and Conduct - correct answer ✅Fidelity, Integrity, Competency, Consumer Information, Discriminatory Practices caveat emptor - correct answer ✅are two Latin words that most people have heard at some point - "let the buyer beware." All real estate transactions in Texas are done "as is." IREM (Institute of Real Estate Management) - correct answer ✅an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing.
Estate (SAE) CHAMPIONS Exam Questions
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discriminate or refuse to sell or rent property based upon a buyer's race, color, national origin, religion, sex, familial status or handicap. SIOR (Society of Industrial and office realtors) - correct answer ✅a professional organization begun in 1939, with over 3,000 members worldwide that offers a Designation, a symbol of knowledge, production, and ethics in the real estate industry. NARPM (national association of residential property managers) - correct answer ✅Most single-family homes used as rentals are managed by the owner/ landlord. However, a growing portfolio of homes, homes scattered over a large area, and other factors may make professional management desirable. An organization of managers of single-family and small multifamily properties. Not residential in nature - correct answer ✅Commercial real estate is often defined as any real estate that is _____________.
Estate (SAE) CHAMPIONS Exam Questions
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Good mentorship program - correct answer ✅A good reason for joining a big-name international commercial real estate firm Pocket listings are rare and can be viewed as unethical - correct answer ✅Which statement regarding commercial real estate is FALSE? Supply and Demand - correct answer ✅are perhaps the primary determinants of real estate values. Campus-style - correct answer ✅are so named due to their resemblance to university campuses. They are usually quite large, spread over several acres of land, allow for ample parking, and do not rely on foot traffic from the proximity to other retail businesses. Oil and energy companies, and healthcare providers, like dentists and general practitioners often lease space in this style.
Estate (SAE) CHAMPIONS Exam Questions
And Answers
ROI (Return on Investment) - correct answer ✅is the primary factor motivating people to buy commercial real estate. Especially Real Estate Investment Trusts (REITs). The one reason that investors give money to REITs is to make money. Investors are trusting that REITs will make a return on their money. Properties are purchased and held in anticipation of income, appreciation, or both. Cap rate - correct answer ✅a percentage found by dividing the property's net operating income (NOI) by its value or price. It allows investors to assess whether a property is a good investment or not. general-purpose center - correct answer ✅Though they are most often used for storage purposes. They are flexible spaces that can be adapted and configured for a variety of uses. Ideal for distribution centers, these buildings are comprised of large, open floor plans with flat, durable concrete floors and high ceilings, allowing for different configurations of high shelving racks for storage and picking.
Estate (SAE) CHAMPIONS Exam Questions
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Power centers or category killers - correct answer ✅Are very large in size, the average being over 400,000 sq.ft., and can easily be found over 1,000,000 sq.ft. These centers are built for big box stores speculative land - correct answer ✅Banks are often hesitant to finance land deals. If development of raw land is not planned within 12 to 24 months of financing, it is considered ___________ which means a higher-risk for the lender, making it an undesirable deal. Why is this? The primary source of repayment in commercial real estate is the cash flow of the property. Office Park or Business park - correct answer ✅They range in size from low-rise (1 to 2 stories) to mid-rises, rarely over four or five stories; in the suburban market, mid-rises average around five stories. CBD (central business district) - correct answer ✅of a city is located within its heart, home to banking, finance, and mega insurance companies, among other industries. Land is at a premium, parking is scarce and expensive,
Estate (SAE) CHAMPIONS Exam Questions
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Class A multifamily - correct answer ✅UNDER 5 years old. properties, will be new builds with granite counter tops, garden tubs, higher-grade appliances, usually stainless steel, in each unit. The property will boast a luxurious club house with a resort-style pool and a well-equipped gym. Often, these properties will have high-walkability scores, close to shopping districts and entertainment. The apartment owner can charge premium rental rates for these properties. These high- quality properties tend to have a lower cap rate because investors are not going to realize high cash flow. Operating expenses are high as the properties have professional management companies and many amenities to maintain. Class B multifamily - correct answer ✅15 years old. properties will rent in the mid-range of the market and will be in desirable areas, but will not offer the amenities of a Class A property. Class C multifamily - correct answer ✅50 years old units are clean, but might not have central a/c, depending instead on window units to cool the
Estate (SAE) CHAMPIONS Exam Questions
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apartments. Appliances are older, yet functional, and kitchens and bathrooms are merely utilitarian. Class D multifamily - correct answer ✅properties are typically in economically depressed areas and often suffer from a great deal of deferred maintenance. These properties normally have higher cap rates because of the high risk involved. These properties will require a sizable investment for rehabilitation to bring them up to a higher standard. Economics, land costs and taxation - correct answer ✅_____________ affect(s) the supply of real estate in the United States. ROI - correct answer ✅_______________ is the primary motivating factor for purchasing commercial real estate LEED (Leadership in Energy and Environmental Design) - correct answer ✅The "green" revolution. The U.S. Green Building Council has a building certification program. Once certified, a
Estate (SAE) CHAMPIONS Exam Questions
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operated. is a consensus-based organization of members from a wide range of vocations including architects, engineers, developers, builders, REALTORS®, and property managers just to name a few. Surface Rights - correct answer ✅The owner has the ability to develop (improve) the surface, and to use resources extracted from or near the surface including stone, gravel, water, and limestone. Subsurface rights - correct answer ✅include the rights to oil, gas and other minerals, and are commonly conveyed through a lease, mineral deed or by reservation. Air rights - correct answer ✅extend above the surface without limitation. As an estate in land or interest in land, can be leased, sold or mortgaged. Walkways and buildings that extend over public streets involve the lease or conveyance of these rights. Outdoor advertising leases and cell tower leases also involve these rights by prohibiting any activity that would block the view of the billboard or transmissions from the cell tower.
Estate (SAE) CHAMPIONS Exam Questions
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Land Men - correct answer ✅Their job is to research ownership of all the mineral estate. In order to do this they may pull all the deeds on a property all the way back to the sovereignty to determine ownership of the minerals. They may also research old or present lease agreements on the land to determine ownership. Riparian Rights - correct answer ✅are the rights that an owner has to use water from a river or a stream on or next to a property. Littoral rights are the rights to use water from a lake, ocean or sea on or next to property. The water may be used for domestic purposes and may not be contaminated. The flow of the water may not be interrupted. eminent domain - correct answer ✅is the right of the government to take private land for public use. The action of taking the land is called condemnation. Land must be taken for the good of all.
Estate (SAE) CHAMPIONS Exam Questions
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Specific lien - correct answer ✅attaches to one or more specific or named properties (Example: a mortgage) ESA (Environmental Site Assessment) - correct answer ✅an assessment that is carried out by a qualified environmental professional to determine whether or not a property has been contaminated by any previous or current activities that occur(red) on or near the property. Certain industrial or retail facilities on or near the property could have caused contamination of the property. For example, a gas station with underground storage tanks could have contaminated the soil or groundwater, pre- senting an environmental risk. CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) - correct answer ✅was designed in 1980 to clean up sites contaminated with hazardous substances, pollutants or contaminants. CERCLA safe harbor - correct answer ✅Homeowners are generally exempt under the Act,
Estate (SAE) CHAMPIONS Exam Questions
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under the following conditions:• They were unaware of the presence of pollutants when purchasing the property • They are not classified as a responsible party• They cooperate with the EPA or other agency in the cleanup of the property Wetlands - correct answer ✅United States Army Corps of Engineers (USACE) as responsible for the regulation Oil and Gas drilling - correct answer ✅The Texas Railroad Commission controls all _________ in the state CAM (common area maintenance) - correct answer ✅Common areas benefit every tenant in the building and can include (among other things) bathrooms, corridors, lobbies, janitor closets, mechanical rooms, elevators, stairwells etc. These are shared expenses, and each tenant in the building is responsible for paying fees associated with the upkeep of the common areas. The landlord is collecting rent for these common areas.
Estate (SAE) CHAMPIONS Exam Questions
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year that the landlord charges to offset his costs of running the building. Shopping centers - correct answer ✅Most often will be percentage rent based on tenant sales. The landlord gets credit for you being there. Older Class C strip centers - correct answer ✅In the past, most retail leases were gross leases. Landlords moved to triple-net and percentage rent because of the economy, namely inflation. There are some that still may offer gross leases to their tenants due to the economic conditions of the area. index lease - correct answer ✅assigns an adjustment number to the lease, often tied to the Consumer Price Index (CPI), that allows for the rent to increase or decrease, usually from year to year. The parties to the lease agreement negotiate the amount and frequency of the adjustment. The CPI, also referred to as the cost of living index, is a measurement used to compare the average cost of certain goods that consumers buy, including real estate.
Estate (SAE) CHAMPIONS Exam Questions
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Contract Rent - correct answer ✅The rental income stipulated by the parties in a lease is known as Statute of Frauds - correct answer ✅a lease for a period of more than one year must be in writing to comply with the procuring cause of sale - correct answer ✅is the individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract. The rule is that the broker must perform within the time specified in the contract. exclusive agency - correct answer ✅this listing, the seller agrees to list the property with only one broker during the listing term, with the provision that the seller can sell the property independently, without paying a commission.
