Chapter #8 Questions

Chapter #8
Multiple Choice & True/False Questions
Prepared by: Kent Sakamoto

1. The second step of the "Dynamic Process of Real Estate Development" diagram involves...

A) Refining the Concept
B) Conceiving a Project
C) Examining Project Feasibility (p.201)
D) Constructing the Design

2. Which is true when examining the feasibility of a project?

A) If the Market Will Support the Project's Vision
B) If the Site Itself is Suitable , Both Physically/Legally to Accommodate Project
C) Both A and B (p. 204)
D) None of the Above

3. An exclusive option is....

A) The Exclusive Right to Purchase the Property and Close the Transaction by a Specified Date (p. 207)
B) A Clause Protecting Developers Against Loss if Project Fails Market Analysis
C) Process of Obtaining Necessary Government Permits
D) None of the Above

4. Developers are real estate entrepreneurs who build value by producing space.

True
False

True (p. 198)

5. The "Dynamic Process of Real Estate Development" model breaks down the process into 8 specific steps.

True
False

False (p. 201) 6 Steps

6. Competitive markets is the economic and locational environment in which a particular property competes and trades.

True
False

True (p. 210)

7. A bridge loan is a short-term loan issued to a developer to fund the construction stage of a project.

True
False

False (p. 213) Construction Loan

8. Preleasing is an effective risk-mitigation strategy since it increases the probability of success early in the project.

True
False

True (p.215)