theory and practice: Real Estate Practice : Lesson 3975 - 03/02/15 06:55 AM
A local construction company recently purchased 75 acres of land and decided to build a number of storage facilities on the property for the storage of building matrerials and machinery.
What is the most significant and notable condition which has been satisfied by the construction of the storage facilities on the property ?

The construction of the the storage facilities on the property establishes inprovement of the property.
When an improvement is built on a parcel of land it can have an impact on the land's value.
Improvements can also have an effect on the land and neighborhoods surrounding it as … (4 comments)

theory and practice: Real Estate Practice : Lesson 3974 - 03/02/15 06:54 AM
When we talk about a REALTOR®, what kind of a person are we referring to ?
Please take your time. The answer is posted below the wildlife photo.

A REALTOR® is a member of the National Association of REALTORS®, which is also the nations largest trade organization supporting the needs of the real estate community.
Many facets of the industry are examined under the aegis of this historical organization representing over a million members.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3973 - 03/02/15 06:52 AM
When we consider the supply in the real estate markets, between the options of demographics, population, employment, and government financial policies, which one of these has the most impact ?

A. Govermnment financial policies.
The way the economy is behaving is the key to financing opportunities. The rate of inflation and whether or not the resources for mortgaging a home are available have an impact on the decision to purchase a home. When the Federal Reserve Board establishes the discount rate of interest for the money it lends to banks, the discount rate will have an effect on the interest rates … (0 comments)

theory and practice: Real Estate Practice : Lesson 3972 - 03/02/15 06:51 AM
Appraisal, financing, property management and development may all be considered example of what ?

A. All of these things are considered specializations within the real estate industry.
Property management is the professional charge of effectively directing and watching the day to affairs of real estate.
Appraisal is the professional estimate of a parcel of real estates market value.
Financing is the funding of the financial resources necessary to make a real estate project a possible.
Development is the act of improving by expanding, enlarging or refining some aspect of real estate.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3971 - 03/02/15 06:49 AM
What factor is most likely to influence the demand for real estate ?

A. Employment opportunities and the wage levels offered.
If wages are low and the opportunity for employment is scarce, the demand for real estate becomes low. If the reverse is true the demand for real estate is high.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3970 - 03/02/15 06:47 AM
In general, when the supply of a certain commodity increases, what tends to evolve as a natural result of this phenomenon ?
Tkae your time. The solution is below the wildlife photo.

A. Prices tend to drop.
Increase in supply can be the result of less demand or over-production, as well as other factors which may include stockpiling ( which may have the reverse effect because of an increase in demand)
(0 comments)

theory and practice: Real Estate Practice : Lesson 3969 - 03/02/15 06:45 AM
ome licensees, after dedicating years of service to marketing properties, might decide to retire but not get out of real estate all together.
They may decide to help clients make decisions about investing in or purchasing property.
What capacity would a licensee serve in this manner ?

A. Real estate counselor
(0 comments)

theory and practice: Real Estate Practice : Lesson 3968 - 03/02/15 06:44 AM
An estmate of a property's market value conducted in a manner based on methods that have been established and undertaken by trained professionals applying professional judgement about market value is performed by whom ?
Take your time. The answer is posted below the wildlife photo.

A. A real estate appraiser
(0 comments)

theory and practice: Real Estate Practice : Lesson 3967 - 03/02/15 06:43 AM
What are the two characteristics that we consider to have the most impact when we consider the market value of the land ?
Please take your time. The answers are posted below the wildlife photo.

 
A. Uniqueness and immobility.
What we're considering here is that no two parcels of any
(0 comments)

theory and practice: Real Estate Practice : Lesson 3966 - 03/02/15 06:42 AM
 
When we consider the words broker and REALTOR® are they alike or unrelated ?
Take your time. The answer is posted below the photo.

A. The terms are unrelated .
A broker is a real estate licensee and a REALTOR® is a member of the National Association of REALTORS®. More specifically, the term REALTORS® or REALTOR® represents a proprietary, protected trademark owned by the national REALTOR® organizaton.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3965 - 02/23/15 03:44 PM

A farm earns $36,000 net after allowing for all expenses.
The buyer wants a 6% return on the investment.
What would the buyer pay for the farm to net a 6% return on the investment?
Please take your time. The answer is posted below the nature photo.

A. $600,000
36000 net
divided by
0.06 or 6% return on the investment
=
600,000 paid for the farm
(4 comments)

theory and practice: Real Estate Practice : Lesson 3964 - 02/23/15 03:39 PM

A salesman's half of a 5% commission for the sale of a 320 acre ranch at a cost of $1750 an acre would equal how much at settlement ?
Please take your time. The solution is posted below the wildlife photo.

A. $14,000
320 acres
times
1750 an acre
=
560000 total cost for the ranch
times
0.05 or 5% commission rate
=
28000 in total commission
divided by
2
=
14000 half of the commission
(0 comments)

theory and practice: Real Estate Practice : Lesson 3963 - 02/23/15 03:36 PM

What is the cost of a lot 264 feet wide by 660 feet deep at a cost of 80000 dolars an acre ?
Please take your time. The solution is posted below the wildlife photo.

A. $320,000
264 feet
times
660 feet
=
174240 square feet
divided by
43560 square feet (the number of square feet in an acre)
=
4 acres
times
80000 per acre
=
320000 total cost for four acres
(0 comments)

theory and practice: Real Estate Practice : Lesson 3962 - 02/23/15 03:33 PM

If an apartment house cost $420,000, and it has a net income of $2800 per month, what percent would the apartment house return on the investment?
Take your time. The solution is posted below the wildlife photo.

A. 8%
2800 a month
times
12months
=
33600 a year
divided by
420000 cost of the building
=
0.08 or 8% return on the investment
(0 comments)

theory and practice: Real Estate Practice : Lesson 3961 - 02/23/15 03:25 PM

A forty acre orchard sold for $22,000 an acre.
The profit the seller made over the cost of the property was 10%.
How much did the seller pay for the orchard ?
Take your time. The solution is posted below the wildlife photo.

A. $880,000
Multiply 22k times 40 and we see that the orchard sold for $880,000.
Now let's divide 880k by 1.1 or the numer one plus the 10% profit (converted to a decimal .1).
880000
divided by
1.1
=
800000 originally paid for the orchard.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3960 - 02/23/15 03:20 PM

I leased a storeroom to a business owner on a percentage basis.
The lease calls for a monimun monthly rental of $4000 per month and 5% of the gross monthly business over $800,000.
How much rent would I receive annually from the businessman if the businessman did a gross annual business of $1,200,000 ?
Take your time. The solution os posted below the wildlife photo.

A. $68,000
Here's how:

Subtract 800,000 from 1.2 million to see that the businessman did a gross yearly business of 400,000 over the 1.2 million.
400000
times
0.05 or 5% of the gross monthly business over 800k
=
20000 … (0 comments)

theory and practice: Real Estate Practice : Lesson 3959 - 02/23/15 02:39 PM
 
A real estate transaction closes on September 12, 2015.

The taxes for 2015 are $8752.40 and they haven't been paid yet.

They have to paid by the purchaser.

When the taxes are prorated for the calendar year, what is the amount that has already been paid, and will this amount be a debit or a credit to the purchaser at the closing table?

Will the purchaser owe any taxes for the calendar year and how much if any ?
 
Take your time. The solution is posted below the wildlife photo.

A. $6126.65, which is credit to the … (0 comments)

theory and practice: Real Estate Practice : Lesson 3958 - 02/23/15 02:20 PM

If a buyer purchased an apartment building for $400,000 and the total amount of the rents received amounted to $60,000 annually, and his annual expenses were $20,000, what is the rate of return his investment will pay ?
Take your time. The solution is posted below the wildlife photo.

A. 10%
60000 annual rent
minus
20000 expenses
=
40000
divided by
400,000 cost of the building
=
0.10 or 10%
(0 comments)

theory and practice: Real Estate Practice : Lesson 3957 - 02/23/15 10:02 AM

What would be the annual rate of interest on a $42,000 loan if the quarterly interest payments are $577.50 per quarter ?
Take your time. The solution is posted below the wildlife photo.

A. 5.5%
577.5 quarterly interest
times
4 quarters
=
2310 total interest per year
divided by
42000 loan amount
=
0.055 interst rate or 5.5% interest rate
(0 comments)

theory and practice: Real Estate Practice : Lesson 3956 - 02/23/15 09:58 AM
   
An owner owns a building that gives him a gross income of $3,250 per month.
His average monthly expenses are $1550 per month.
Would would be the owners net income per year on the property considering these variables ?
Please take your time. The solution is posted below the wildlife photo.

 
A. $20,400
3250 per month
-
1550 expenses
=
1700 net per month
*
12 months
=
20400 net income per year.
(2 comments)

 

Most real estate fraud-related articles and Department of Justice Press Releases published here are taken from the public record, which normally include press releases and court documents related to each entry and case. Any other type of record, i.e. newspaper reports, are only published after consent has been obtained from the original publisher.
Nothing will be published that has not been verified via the public record or consent provided.
Please contact David Saks with any questions.



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