1. The stages of the development process which occur before the developer has committed significant resources to the project are known as postcommitment.
Answer: False-Known as Precommitment
2. A Conventional loan is a short-term loan issued to a developer to fund the construction stage of a project.
Answer: False- Known as a Construction loan.
3. A commitment made by a permanent lender to extinguish the collateral interest a construction lender has in a real estate project by loaning the funds used by the developer to pay off the construction loan is known as the takeout loan commitment.
Answer: True
4. An analysis which aims to estimate how much of the total demand in a competitive market can be captured by a particular property is known as the highest and best use analysis.
Answer: False- known as the marketability study.
5. Permitting is the process of obtaining the necessary government permits to begin and sustain a construction project.
Answer: True
1. Which of the following is not a stage in The Dynamic Process of Real Estate Development:
A. Construct the Design
B. Manage the Asset
C. Refine the Concept
D. Define a Tax Shelter
Answer: D is not part of the model
2. An assurance made by a third party, that the original party will perform according to contract is known as a:
A. Bridge Loan
B. Certificate of Occupancy
C. Performance Bond
D. Takeout loan commitment
Answer is C- Performance Bond
3. In which of the following Real Estate Development steps does an investor formalize relationships and prepare documents, secure investor capital, and acquire site and post-acquisition activity:
A. Stage One: Conceive a Development Project
B. Stage Two: Examine the Feasibility of a Project
C. Stage Three: Refine the Concept
D. Stage Four: Design the Project
Answer is D-Stage four: Design the Project
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