Investor Patel owns an industrial property containing several rental units with an annual effective gross income of $377,000 and annual operating expenses of $281, 500. Based on a capitalization rate of 10.25%, what is the estimated value of this property? a. $978, 875 b. $386, 425 c. $2, 746, 341 d. $931, 707 Mortgage default insurance (also referred to as high ratio mortgage insurance), is required in certain circumstance. The purpose of the insurance is to: a. protect the borrower in the event that the borrower fails to make the mortgage payments. b. pay off the mortgage upon the death of the borrower. c. protect the lender in that the lender will be repaid the borrower fails to keep up the payments. d. protect the borrower in the event that tax and property insurance payments fall into arrears. Which one of the following statements is correct as it relates to fixed versus variable rate mortgages? a. Variable rate mortgages are the mortgage of choice for those wishing stability in mortgage payments. b. Fixed mortgages contain a convertible option allowing them to be locked in to a variable rate. c. Variable rate mortgages are popular when interest rates are expected to trend upwards. d. Variable rate mortgages fluctuate with the applicable bank prime rate. Sometimes an agency relationship is created even if the agent and the principal do not enter into an express agreement. Which of the following statements best describes the creation of an agency relationship without a prior express agreement? a. The agent and the principal enter into a written agreement that the principal will use the services of the agent. b. The agent gives advice to the principal and performs acts to protect the principal's interests and the principal responds by relying on the agent's efforts. c. If the agent implies to others that the agent represents the principal, the principal must acknowledge that the agency relationship has been created. d. The conduct of the agent creates a legal obligation on the principal to ratify the agency relationship