UAP 2004 – Test 5 – Flashcards
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Capital Improvement Plans
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Detail the timing and scope of future expansions in transportation, utility, public facilities, and open space networks
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Plans prepared by a planning committee or commission that project 20 years or more into the future are called
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master plans
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The Code of Va, 15.1-446.1 specifies that the [insert answer] " shall be made with the purpose of guiding and accomplishing a coordinated, adjusted and harmonious development of the territory which will, in accordance with present and probable future needs and resources best promote the health, safety, morals, order, convenience, prosperity and general welfare of the inhabitants."
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The comprehensive plan
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Sustainable development reflects
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A broad commitment to stewardship along with exploring multiple options related to property performance
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Patio apartments are similar to
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detached houses
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The price of the use of space in space markets is called "rent.
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True
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Which of the following is not a step in the market analysis process for residential development?
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Delineation of the trade area
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What is the months supply in a market that is absorbing 360 units per year and has 30 vacant, completed units and 90 units under construction?
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4
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Mobile-home financing has become more comparable to conventional home financing in recent years
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True
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Beltway highways tend to
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further the development of multiple nuclei growth
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Which of the following models is not discussed in the text as a method of analyzing city growth patterns?
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Arc radial model
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Rental office space demand is the amount or quantity of office space desired for lease at various prices
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True
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How are building codes enforced?
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Certificate of occupancy
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Mobile homes generally appreciate in value
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False
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A town's municipal government receives the power to enact zoning ordinances through
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enabling acts
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Second-home markets are very similar to primary home markets
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False
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Industrial growth tends to occur
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along major highways or railroads
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Which of the following is generally not considered to be a population serving activity?
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Wholesale trade
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A building company submitted a request for zoning for a planned unit development (PUD). This will enable them to
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make a greater use of open space
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the __________ rate is a measure of how quickly (or slowly) newly constructed residences are being sold upon completion
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absorption
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Which of the following terms refers to public investment in roads, water lines, sewer systems and other public facilities?
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Infrastructure
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The quality of public services and the local tax environment may give an area a comparative advantage
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True
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Transactions between investors for the ownership of investment properties occur in real estate space markets
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False
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Office buildings in a market that generate the highest rents per square foot are called
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Class A buildings
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When demand goes up and supply goes do, equilibrium prices remain unchanged
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False
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The development industry adds new space to space markets when the cash flows from new properties exceeds the cash flows from existing properties
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False
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The level of employment largely determines the level of personal and business income, which in turn greatly influences the demand for real estate development
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True
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LID (low impact development) addresses
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Designing to minimize storm water runoff by utilizing the site's natural ability to use, contain, evaporate and filter water
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Which of the following terms refers to industries that bring income into a region from beyond its borders?
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economic base
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In addition to analyzing recent trends within a market area, the developer should determine what underlies the trends
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True
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Which of the following is typically not a characteristic of a "poor" or declining real estate market?
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Decreasing vacancy rates
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Which is not generally considered to be an export activity?
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Construction
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Abundant natural resources do not contribute to a city's comparative advantage
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False
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Zoning controls building mass by regulating
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Set-back and open space requirements, minimum building size and maximum height, Floor Area Ratio, and parking requirements
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With price on the vertical axis and quantity on the horizontal axis, the demand curve for most real estate space markets is
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downward sloping
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The multiple-nuclei model of urban growth is more primitive, thus less complex than the concentric-circle theory of urban growth
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False
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The most desired type of housing in America is
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single-family detached
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Which of the following would NOT be considered part of the created environment?
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Climate
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Which of the following serves as an indicator of the balance between supply and demand in a market?
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Vacancy rate and rent levels
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The most immediate effect of a declining birth rate is likely to be
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increased demand for smaller homes
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Real estate space markets are categorized by two characteristics: property usage and geographic boundaries
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True
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As a neighborhood declines
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population density increases, but public services remain stable
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Real estate assets compete with other capital market assets in
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all of these
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The process by which one land use gives way to another is a rapid one
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False
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In a neighborhood that is rapidly declining, only the highest-income residents typically remain
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False
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Proximity to family members has little effect on the location of people
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False
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Students of real estate should study factors that influence demand at the national, regional, community, and neighborhood levels because
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each of these factors affect the value and marketability of individual parcels of real estate
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Highest and best use of property reflects
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Maximizing the objectives of the owner/developer without regard to community goals
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Advantages of attached housing include all EXCEPT
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greater development costs per unit
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The suburban version of the row house is called a townhouse
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True
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Filtering is the process of building on vacant land within a developed urban area
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False
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The environmental constraints and opportunities for development include
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Human, Biotic and Abiotic components of the environment
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The Comprehensive Plan is
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A general plan to guide urban development and redevelopment related to the health, safety, orderly development and general welfare/wellbeing of the community
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Demand for housing in a locality is closely related to employment growth
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True
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In a space market with an upward sloping supply function, an increase in demand for space would be met with
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an increase in equilibrium price
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A new zoning ordinance is enacted that prohibits barns from being built in a city. The owner of a previously existing barn on her property has been told that she does not need to tear it down. This is an example of
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nonconforming use
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Regarding market analysis for residential development, which of the following is NOT true?
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A low number of unsold housing of a specific type always indicates a good market for that particular housing type
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A zero lot line development is a form of attached housing development in which individual dwelling units are placed on separately owned lots
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False
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The plat map filed for a new subdivision would include all of the following EXCEPT
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prices of the available residential lots
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As the elderly become an increasingly larger component of the total population in some areas, the demand for all the following will likely increase EXCEPT for
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larger-sized single family detached housing
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Values rise more rapidly in some neighborhoods than in others, and certain older neighborhoods prosper while others decline
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True
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Variances are
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authorized deviations from the zoning provisions that regulate the size of a lot or the size, area, or location of a building or other structure as approved by the Board of Zoning Adjustments (Appeals)
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The highest office space rents are found in Class D buildings
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False
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Local government's power to review Ingress-egress and traffic impacts of development proposals
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reflects the police power authority to protect public safety
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The passage of housing to less affluent families as the housing ages is known as
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filtering
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Which of the following is not a part of a city's infrastructure?
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Donut shops
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When analyzing a market for a particular residential project, the market area is mostly determined by
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employment opportunities and commuting ranges
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One factor that may determine a community's comparative advantage is its climate
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True
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National economic change affects local markets in
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both the short run and the long run
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The advantages of attached housing include
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All of these
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The attached row house is a type of dwelling on its own fee simple lot that shares
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common walls
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The real estate analyst attempting to ascertain possible short-term changes in local real estate markets must estimate the current supply of various types of real estate improvements
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True
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Which of the following is an export activity?
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Automobile manufacturing
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Considering a property's cash flow generating ability, its price will be determined by participants in the asset market based on risk, cost of capital, and growth expectations
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True
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It has been emphasized that the process of neighborhood deterioration and decline is not inevitable. The first attempt to renovate deteriorated dwellings is usually made by A. retired individuals
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young, middle-income individuals
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Zoning Specifies
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the use and parameters of use (e.g. single -family detached) and intensity of use (the amount of building allowed)
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Commercial development tends to occur near transportation nodes
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True
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Zoning is
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An ordinance (law) SPECIFIC to each parcel of land within the jurisdiction
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A city will tend to grow if employment increases in
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export activity
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Over reliance on re-zoning
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encourages NIMBY responses, increases uncertainty, and reduces densities below the levels allowed by the zoning code
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The changing image of the mobile home has been brought about by which of the following factors?
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Improved design
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In the process of creating a landfill, waste is
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layered with top soil in a pit, mounded up, then covered with dirt and plants
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Generally speaking, the risk associated with equity assets is _______ the risk of debt assets
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greater than
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A couple is looking into buying some property to build a restaurant. To determine whether this property can be put to their intended use, they should examine the
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zoning ordinances for that location
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A theory based on the fact that some development tends to extend in pie-shaped form from the center of the city is known as the
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wedge-sector model
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Community character
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Is often included in Comprehensive Plans but is difficult to interpret for specific development proposals
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The real estate analyst trying to ascertain the possible long-run demand is not interested in national trends that may affect employment in a particular area
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False
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Neighborhoods in the gestation stage, the youth stage or the maturity stage in the life cycle of neighborhoods are characterized by
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a general rise in residents' income levels and property values
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A zoning variance
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allows an owner to deviate from the strict enforcement of the existing zoning law but exclude the use provision
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Transactions involving the transfer of rights to use real estate are said to occur in the
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real estate space markets
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Which of the following factors may help determine a community's comparative advantage?
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All of these
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In local real estate markets, changes in demand in the very short run affect each of the following EXCEPT
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supply
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The attached row house is a 20th-century concept
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False
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The organizational and geographic scope of urban land use planning (Comprehensive Plans, subdivision regulations and zoning ordinances) in the United States is typically at which level
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Local
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An excellent example of a comparative advantage in transportation facilities is the development of Chicago largely because of its position as the dominant freight rail center in the Midwest
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True
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Financial feasibility analysis for a residential development
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analyzes the expected cash flows of a project from conception to its anticipated sell out
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The development industry tends to add new space to the real estate system when
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values in the asset market are greater than or equal to cost of production (including normal profits to the developer)
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Supply and quantity supplied are the same concepts.
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False
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Although there are exceptions, the primary reason most people live in the communities they do is because of
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employment opportunities
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With regard to the discovery of environmental hazards, a real estate agent should do all of the following EXCEP
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attempt to correct the hazardous condition
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A patio house, or zero-lot-line house, is similar to a detached house
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True
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Which of the following events would most likely cause the largest increase in demand for smaller sized houses?
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Decrease in family size
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The axial model of urban growth results in a city that is
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star-shaped
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A 1920s study of Chicago resulted in what type of model of urban growth?
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concentric circle
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The percentage of the total amount of space in a market that is unoccupied at any given point in time is called
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vacancy rate
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A house that is separated from any adjoining structure with at least some open land on all four sides is a
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detached house
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The plat is
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The officially registered and binding plan for a subdivision showing utilities, roads, parcels and improvements
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NIMBY reactions to development proposals usually reflect
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A frequent (but unfounded) perception that higher density is "unhealthy" and undesirable
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In order to determine project feasibility, developers need to know the local market
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True
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Subdivision regulations apply whenever
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larger parcels are divided into smaller parcels
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Changes in the characteristics of population have no effect on demand for real property
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False
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Which of the following is not one of the principal types of residential development?
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Power center
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The development of land between existing structures is called
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in filling
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In some areas, a movement of the middle class back to the cities has begun
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True
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The "innocent landowner" defense to CERCLA liability potentially applies to
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A property owner who did not cause or contribute to hazardous substances and acquired the property by inheritance or bequest
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Entitlement in real estate development refers to
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All of the regulatory approvals needed before a property can be developed
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Which land use requirements can be enforced by local municipalities?
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Zoning ordinances
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The process of neighborhood deterioration and decline is inevitable
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False
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A homeowner wants to build a front porch on her house, but it is not allowed in that zone. In order to build the porch, she will first have to appeal for a
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variance
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A planned unit development (PUD) involves
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all of the above
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Transactions involving cash-flow rights are said to occur in the
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real estate asset market
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In a space market with a flat (horizontal) supply function, an increase in demand for space would be met with
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no change in equilibrium price
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An expected impact of a declining birthrate would be an increased demand for smaller homes
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True
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A rental market with a low vacancy rate suggests that the market is struggling to attract tenants to existing buildings
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False
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The only way real property is traded in the public capital market is through real estate investment trusts (REITs)
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False
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A low percentage of unsold housing units generally indicates a good market; whereas a low number of unsold houses always indicates a good housing market.
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False
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Transportation is the major factor used to explain urban growth and form in which model of urban growth?
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axial
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Holding other things constant, the supply/demand equilibrium model suggests that decreases in supply result in higher equilibrium prices
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True
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Which statement is NOT true?
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Financial feasibility of a residential project is not dependent on the absorption rate of the market
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Real estate market dynamics are too complex to be modeled by the supply/demand equilibrium model commonly used by economics to analyze market dynamics for other goods and services
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False
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When a neighborhood is revitalized, which term describes the displacement of lower income residents by higher income residents?
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gentrification
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The first step in market analysis of residential property is delineation of the market area
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True
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A large oil tank buried on a couple's property has caused extensive damage to a large area in their subdivision. They may find themselves held liable for damages as potentially responsible parties (PRPs) based on
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CERCLA.
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Subdivision development leads to large positive cash flows at the beginning of the project
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False
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A patio house is very similar to a detached house except that there is no side yard on at least one side
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True
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The primary concerns of participants in the real estate asset market are the amount and time of the cash flows a building is capable of producing
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True
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The axial-growth model postulates several circular zones radiating outward from a central business district
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False
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Potentially responsible parties (PRPs) refer to
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Landowner and other parties who can be held liable when a release or threat of release of a hazardous substance has occurred on own property
