# National Section - Chapter 2 Flashcards Preview

## Real Estate > National Section - Chapter 2 > Flashcards

Flashcards in National Section - Chapter 2 Deck (28)
1
Q

Area of a rectangle

A

width x depth / length

2
Q

Area of a triangle

A

base x height / 2

3
Q

Area of a trapezoid

A

(L + L / 2) x H

4
Q

1 Acre = ? SQFT

A

43,560

5
Q

Width of the lot and the expanse of road exposure that a lot offers

A

front footage

6
Q

Heated and cooled square footage of a structure that is measured using the outside dimensions

A

Gross Living Area

7
Q

GLA excludes what areas?

A

garage, carports, decks, patios

8
Q

Amount of space local zoning regulations require between the property line and any improvements

A

setbacks

9
Q

Type of legal description that describes a parcel of land using a set of fractions and the corresponding section, township and range numbers

A

rectangular/ government survey

10
Q

Square tract of land used in the rectangular survey method

A

section

11
Q

1 section measurements

A

1 mile wide and 1 mile deep (contains 640 acres)

12
Q

Volume

A

H (or D) x W x L

13
Q

Tool agents use to determine listing amount on a home

A

Comparative Market Analysis

14
Q

Appraisal method for single family or duplexes based on the gross monthly rent

A

Gross Rent Multiplier

15
Q

Method of appraising income producing properties based on the annual gross income

A

gross income multiplier

16
Q

Value method based on the principle of substitution

A

cost approach formula

17
Q

Decrease in value due to physical deterioration, functional, or economic obsolescence

A

depreciation

18
Q

Determines the rate of return considered to be a reasonable return on investments - given the risk

A

income capitalization approach

19
Q

approach to calculating value which is the gross income less all operating expense

A

NOI

20
Q

annual amount of money someone pays to borrow money

A

annual interest

21
Q

Debt paid off over a period of time with periodic payments

A

amortized loan

22
Q

Loan that pays down the interest owed, none of the principal

A

interest only loan

23
Q

number expressed as a percentage or decimal that calculates a mortgage payment which would retire the loan in the expressed time allotted or term of the loan

A

loan constants

24
Q

shows the relationship b between the amount borrowed and the appraised, market, or assessed value of the property

A

LTV ratio

25
Q

Increase in value over time

A

appreciation

26
Q

percentage relationship between the investment price and the returns on that investment

A

rate of return

27
Q

value of real estate - any liens against the real property

A

equity

28
Q

gross potential income - vacancy and collections and other income - all operating expenses

A

NOI