IAAO 102 QUIZ 1 & 2(no math questions) GLL Latest Version 2023 2024 Questions and Correct Answers Guaranteed Success annually - Correct Answerthe mortgage capitalization rate (Rm) is the ratio between the payments of principal interest on a mortgage to the original amount borrowed and is expressed
anticipation - Correct Answerthe underlying principle providing the basis of the income capitalization approach is
Capitalization - Correct AnswerIs the process used to convert income into an estimate of value
deficit rent - Correct Answerwhen market rent exceeds contract rent, the difference is known as
Direct Capitalization is a valid method when the overall rate is developed from sales in which - Correct AnswerThe land to building ratios are similar, the remaining economic lives are similar, and the income and expense ratios are similar to those of the subject property.
effective gross income (EGI) - Correct Answerthe anticipated income from all operations of the property adjusted for vacancy and collection losses, and misc. income
is called:
effective rent - Correct Answerlease base rent less rent concessions is called:
effective tax rate (ETR) - Correct Answerrate that is the percentage that annual real
estate taxes are in relation to the property's total value is:
fixed rate mortgage - Correct Answera loan secured by real property featuring an interest rate that is constant for the term of the loan is referred to as a/an
gross lease - Correct Answerrequires that in addition to the rent, the landlord must pay maintenance, utilities, insurance and taxes
income/rate=value - Correct Answerthe basic equation used in the income approach to value is
Land residual technique - Correct AnswerOne of the standard techniques used when analyzing the income of property is to divide the income generated between the land and the improvement and then to capitalize the residual income to the land into a value estimate.
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