Level 3 Chapter 1: Use-Based Properties

Question 1

5 Types of Property

Answer 1

1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special purpose

Question 2

Residential Real Estate

Answer 2

Real estate that is used for housing

Question 3

Types of Residential Property

Answer 3

1. Single-family residences
2. Vacation properties
3. Multi-family residences
4. Townhouses
5. Condominiums
6. Apartment buildings
7. Manufactured homes

Question 4

Commercial Real Estate

Answer 4

Commercial real estate generally refers to properties that: Are used for business purposes, Are used to generate revenue, Are typically considered investment properties (more on these later)

Question 5

Types of Commercial Property

Answer 5

1. Office buildings
2. Retail complexes
3. Gas stations
4. Entertainment venues
5. Restaurants

Question 6

Industrial Real Estate

Answer 6

Industrial real estate is a broad category that includes properties: Used for the manufacture of products or materials, Used as distribution facilities, Used as warehouses. The buildings are typically constructed or remodeled with highly specialized features for the particular needs of the tenant. Industrial leases tend to be much longer than those drawn up for commercial or residential use.

Question 7

Types of Industrial Property

Answer 7

1. Manufacturing plants
2. Distribution facilities
3. Warehouses
4. Storage facilities
5. Research facilities
6. Data centers

Question 8

Agricultural Real Estate

Answer 8

Agricultural real estate includes: Properties used for the commercial cultivation of food, feed, and fiber
Commercial ventures used to provide us with fruits, vegetables, livestock, plants, wood products, and other resources that are an essential part of our daily lives. Agricultural properties can vary greatly in size and purpose. Some properties include a vast number of improvements while others are little more than raw land with a border fence. Property tax purposes, the on-site residence of the owner of an agricultural enterprise may not be considered agricultural real estate, but rather residential real estate. That “on-site residence” would include the owner’s home and all related residential structures. If the agricultural real estate contains housing facilities for employees of the agricultural business, however, that WOULD be included in the property tax assessment.

Question 9

Types of Agricultural Property

Answer 9

1. Family and commercial farms
2. Ranches
3. Orchards
4. Nurseries and greenhouses
5. Pastures
6. Feed lots

Question 10

Special Purpose Real Estate

Answer 10

Designed for a specific use and have limited adaptability for other purposes. Often publicly owned, Require substantial reinvestment to convert to another purpose or use, Do not come up for sale as frequently as other property types

Question 11

Types of Special Purpose Property

Answer 11

1. Churches
2. Schools
3. Recreational facilities
4. Cemeteries
5. Government-held land