Real Estate Economics 156, Foldvary, SCU

Midterm #3, May 30, 2003. 6 pts. each.

Study guide

1. "negative declaration" from a government agency

2. The economic (in contrast to the financial) meaning of "investment"

3. Real estate speculation, in contrast to investing, means

4. In the ownership of real estate for financial gain, the owner should treat taxes how?

5. In a cash-flow analysis, the gross scheduled rentals mean

6. The property tax in the cash flow analysis

7. In the USA, if an apartment complex has a total value of $Z million and Y% of that is land value, the annual depreciation for the federal income tax is:

8. For the federal income tax, "passive income" from real estate occurs when

9. Passive losses from real estate can be used for what?

10. A married couple who sells their principal residence and their capital gains tax.

11. If you own rental property as a landlord, sell the property, and simultaneously buy another property (the new property), the tax on capital gains:

12. A "dealer" in real estate

13. An "appraisal" of real estate is and means....

14. The separation of the market value of real estate into land value and building value


16."fee simple absolute" is

17. In a life estate, the property

18. The "police powers" of government include:

19. "Escheat" means

20. State or federal laws prohibit discrimination in selling or renting housing

21. An option to buy real estate

22. The best house in a poor neighborhood is

23. If you buy real estate subject only to your approval of the termite report, and the termite report states that there are most likely no termites, then

24. Designating a portion of the purchase price of a house as personal property