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188 Cards in this Set

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chapter 1
chapter 1
which of the following is an example of collateral
a single family residence
appraisals are usually required whenever property is
bought or sold
assessed
condemed
which of the following correctly listes the order of events in appraisal regulation
S&L crisis occurs, Tax Reform Axt complicates investment property taxes and FIRREA passes
The appraiser Qualifications Board (AQB)
establishes the minimum education, experience, and examination requirement an individual must meet to become an appraiser and is a part of the Appraisal Foundation
The appraisal standards Board (ASB)
Is a part of the appraisal foundation
The appraisal subcommitee (ASC)
oversees state appraisal agencies
Complex 1-4 unit residential property" refers to a situation where
the property being appraised is atypical

the form of ownership is atypical

the makert conditions are atypical
a licensed appraiser may handle federally realted appraisals of complex 1-4 unit residential property valued at less then
$250,000
A certificate appraiser is required for federally realted appraisals of residential property valued at
more than $1 million
An apprisal is
the work performed by an appraiser
why do lenders unsually use the services of an appraiser
to ensure that the property value is high enough to cover the loan amount
A prospective appraisal looks at the
value of a property at a future point in time
the money, labor, and material are the ____ to build a property
cost
who or what created the apprisal foundation
the eight US based appraisal association that had help create USPAP
Appraisers' overvaluation of real estate help cause the
saving the loan crisis
the mission of the Appraisal subcommittee is
ensure that real estate appraisers are sufficently trained and tested
which of the following is not a license level
residential license
under the current requirements how many hous of experience are needed to obtain a trainee license?
no experience is required
starting on January 1, 2008, a BA is required to obtain which of the following license levels
certified general
Chapter 2
Chapter 2
In practice real property is the same as
real estate
anything that is not real property is
personal property
all of the following are trypical appurtenances except
trade fixtures
____ is one of the tests to determine if an item is a fixture
agreement of the parties
when there is a dispute about fixtures and it is not clear who is right courts usually favor the
tenant over the landlord
lender over the borrower
buyer over the seller
which type of legal description refers to subdivision map
the lot, block, and tract system
baselines and merdians are used in the
the government, survey system
a township consists of
36 sections each measuring one square mile
a section consist of
640 acres
a metes and bounds description of land starts at
a well marked point of beginning
a property owner's bundle of rights includes all of the following except
the right to build any structure desired on the property
real property includes
anything immovable by law, anything appurtenant to the land, anything permanently attached to the land, the land
land does not include
riparian rights
what is the difference between riparian and littoral rights
littoral refers to land bordering a lake and riparian refers to land bordering a river
a tree purchase at a nursery and then planted in the backyard is not considered
a chattle
a commerical orange grove is sold one week before the harvest. what happens to the orange crop
the previous owner retains possession
the following legal description the s 1/4 of the s 1/2 of the NE 1/4 of section 27 in T78, R8E contains how many acres
40
starting from the south west corner....
metes and bounds
while appraising in the metropolitan area which type of legal description is an appraiser most likely to encounter
recorded map system
Chapter 3
Chapter 3
A freehold estate can be
sold or inherited
an estate in reversion is a type of
life estate
the trustees of the Jelly donut corporaiton purchased real estate. What type of ownership is this
ownership in severalty
four unities that must be in the existence to create a joint tenancy. Which of the following is not one of the required unities
entirely
a general lien effects
all property of the owner
an avigation easement is
an easement over private property near an airport that limites the height of structures and trees
the ___- is the most frequently used instrument to transfer title
grand deed
enforced transfer of property because of foreclosure or bankruptcy is an example of property transferred through
operation of law
the purpose of recording a deed is to
protect the chain of title
....Bob responds to her offer with a counter offer...has been no ____ which is required for a valid contract
mutual consent
An owner who can dispose of his estate by will owns which type of estate
perpetual estate
if an owner violates any condition on a fee simple qualified estate
the owner will lose title
.....instructions upon death property goes to...
life estate
which type of estate does a tenant possess
less than freehold
who has exclusive possession and use of the rental property
lessee
a property manager lives on the property free of charge, which type of leasehold is there
estate at will
a retail tenant has to pay rent plus all property expenses such as maintenace, insurance and property taxes is
triple net
absolute net
net net net
Kim rents a small retail spacee for $900 per month, plus 8% of any profit over $2,500 kim made 3217 dollars this month what was her rent
$957.36
which type of concurrent ownership includes the right of one tenant to will his interest?
tenancy in common
Chapter 4
Chapter 4
The overwhelming majority of appraisals are concerned with estimating the ____ of a property
market value
according to USPAP price ____ to the value that might be ascribed to that property by others
may or may not have any relation
The amount of money that it took to build a house represents the ___ of the house
value
in regard to real estate, transferability refers most directly to
the rights associated with ownership
the availablity of high paying jobs in an area tends to
have a positive effect on property value in that area
high income taxes would most probably result in
less money available for individuals to make real estate purchase
which of the following will probably lead to the steepest increases in property prices
decreasing supply and increasing demand
the principle of substitution is the basis for all three approaches to value. In which approach is substitution utilized when determining capalization rates and gross rents multiplies
income capitalization approach
the value of an older townhome is enhanced by being in the same neighborhood as several newer townhomes. This is an example of the princple of
progression
when additional investments no longer add value in proportion to the amount invested, the principle of ___ applies
decreasing returns
Chapter 5
Chapter 5
The availability of funds to purchase real estate has an ____ impact upon the demand for real property
direct
___ find barrowers, process applications, and sumbits loan packages to lenders
mortgage broker
lenders may sell groups of real estate loans to investors at competiitive rates in
the secondary mortgage market
a ___ describes the rights and duties of the lender and the borrower and also establishes the creditor's priority claim to a specific property
security instrument
"B" and "C" paper loans are considered
sub prime loans
which of the following organizatins insures lenders against loss, but does not make loans
Federal housing administration
A borrower's income, credit history, and loan collateral are criteria considered in the
underwriting process
if a borrower has an(n) ____ credit score, there is a greater likelihood that the borrower is a good credit risk
high
if a loan is greater than ___ of the property's value, the lender typically requires private mortgage insurance
80%
in creating a ____ the appraiser considers an area's demographics and absorption rates in order to forecast the practicality of a project under consideration
feasibility analysis
Chapter 6
Chapter 6
There are____ standards within USPAP
ten
The Preamble is
A one page mission statement
Developing and reporting a real property appraisal is covered in
Standards 1, 2
Developing and reporting an appraisal review is covered in
Standard 3
Developing and reporting a business appraisal is covered in
none
When an appraiswer is offered an assignment he or she is not competent to handle, the ___ rule outlines the steps an appraiser should follow
Competency
The scope of work rule requires the appaiser to
id the problem
determine and perform work
disclose the scope work in report
THe ___ Rule voids any part of USPAP that contradicts local laws or public policy, while still preserving the remainder of USPAP
Juridicitional exception
To avoid involvement in mortgage fraud, the appraiser should
properly verify all market and comparable information used in the appraisal process (both a and b)
the goal of the verification process is to
ensure that the information the appraiser presents accurately reflects current market conditions and trends and that meaningful conclusion can be reached from this information
chapter 7
chapter 7
which of the following is true regarding a competitive market analysis (CMA)
ALL
may provide ball park estimate
used by real estate brokers
may be referred to as a broker price opinion
Which of the following give a potentional buyer most couse for concern
a home price is moderately higher than its appraised value
whichof the following would be considered an example of improvements
a retail building that has been permanently attached to the land
in a typical appraisal assignment, the lender hires the appraiser, but the prospective buyer pays for the appraisal. Who is the appraiser's client in this situtation
Lender
A lender serious construction loan to a homebuilder what type of appraisal is appropriate
prospective appraisal
which step of the appraisal process includes applying the relevant approaches to value
collecting, verifying and analyzing infformation
A cluster of buildings in a regional medical center need to be appraised. Which appraisal approach would be most appropriate for this situation
cost approach
total annual income received before any expenses are deducted is
gross income
which of the following is used to determine the present value of a property's future earnings
capitalization rate
in regards to reconciling for an apprasial lwhich of the following is true
use to help id
to determine which data provides the most reliable indicated of value
the result of using various factors
Chapter 8
Chapter 8
which government organization typically adopts and implements in general zoning
city council or the board of supervisors
Residential property in an area rezoned for commerical use is an example of an
non conforming use
the first test for highest and best use is to verify if the use is
physically possible
non economic value is best estimated by
there is no wide accepted method of estimating non economic value
once a tract has been prepared for construction it then becomes a
site
which of the following lot types is considered the least desireable type of lot due to the lack of privacy and visibility
key lot
which of the following is not a typical type of lot
kidney lot
which of the following is a product of time, climate, and characteristics of the native plants and animals
soil formation
which of the following organizatins has the responsibilty of identifying special flood hazard areas
FEMA
zeroscaping and xeriscaping are each used in specific climates for
water efficient landscaping
Chapter 9
chapter 9
which of the following organizatins requires appraisers to disclose any defects uncovered in their inpsection
FHA
which term refers to all of ta home's above grade improvements
superstructure
which of the following housing types has the largest roof area per square foot of living area
one story
which of the following is not a common type of surface coating
vinyl
the sill, threshold/saddle casing and weather stripping are all parts of the
doorframe
a window that is hinged at the top and opens out is called
awning
which of the following prevents the intrusion of water and seals the edges of membranes or where membranes overlap
flashing
when the underlying soil is is not capable of supporting the structure ___ may be employed
piles
which of the following is part of the home's substructure and may be a finished or unifinished space
basement
all of the following are energy efficient items in a home except
an aseptic system
Chapter 10
chapter 10
the sales comparision approach is most reliable in situations where
there are a sufficient number of arms lenght sales transactions to indicate patters within the market
____ can limit the usefulness and reliability of the sales comparison approach
lack of market data
which of the following is a source of market data
on site sale office
appraiser offie files
title companies
all of the above
an element of comparision is
any aspect of a real estate transacation or any charactertistic of a property that may affect the property's sales price
flipping a type of mortgage fraud is a possible threat to the quality of an appraiser's
sales resale analysis
the major benefit of the contigent valuation methodology or survey method is that it
can be used even when there is no sales data available
when reconciling the adjusted sales prices of hte comparable properties, the appraiser should give the most weight to the comparable property
any of the above, depending the appraiser's reasoning and judgment
according to fannie mae a single line item adjustment should not exceed ___% of the sale price of the comparable
10
according to fannie mae the gross adjustment percentage should not exceed ___% of the sales price of the comparable
25
____ is the idea that the sales prices of the comparables chosen for the appraisal should not all be higher than the value of the subject property nor should they wll be lower
bracketing
Chapter 11
Chapter 11
substracting a property's vacancy and collection losses from the property's potential gross income results gives the property's
effective gross income
substracting operating expenses from effective gross income yields the
net operating income
which of the following catagories of expenses is not included as an operating expense
mortgage payments
which of the following is determined by dividing the sales price of a property by its gross monthly rent
gross rent multiplier
net operating income divided by the capitalization rate equals
value
to receive a 14% return on an investment of $500,000 what would be the required net operating income of the purchase property
$70,000
the operating expenses ratio for incoem producing property can be calculated by dividing operating expenses by
effective gross income
the band of investment method is used to determine the
capalization rate
The residual techniques attribute income to
the land and the improvement
on the six function of one dollar charts, columns 4 and 5 are for
discounting
chapter 12
chapter 12
the differance between the cost to replace the property and the property's current appraised value is
accrued depreciation
which of the following is not a method used to value land
substraction method
the _____ method assumes that there is a typical ratio between the land value of a property and the value of its improvements
allocation
the depreciated value of the improvements is substracted from the total sales price to find site value in the
extraction method
the net income generated by the improvements is a consideration in finding land value by the
land residual method
when subdivision and development of the subject site represents the highest and best use of the property the___method may be used
land developement
which method is used to calculate the replacement cost of a building
comparative unit method
unit place method
quantity survey method
all of the above
which method of estimating building costs is also known as the square foot method?
comparative unit method
one of the limitations of the unit in place method is that
the market does not always value a property based on the cost of its component parts
which method is generally regarded as the most thorough and accurate method of estimating building costs
quantity survey method
a property's effective age ____ is actual age
may be more years or less years than
which of the following is not a type of depreciation
accelerated depreciation
deterioration of building foundation walls and ceiling is considered
long lived incurable
an outmoded room layout in a home is an example of
functional obsolesence
what type of depreciation is generally not curable
external obsolescence
the simplest method used to compute depreciation is the
cost to cure method
which of the following methods is used when an appraiser estimates the loss in value for curable and incurable item of depreciation
observed condition
which of the following is a technique for estimating accrued depreciation by market extraction
sale resale analysis
paired sales analysis
extraction method
all of the above
when the land is added to the depreciated value of the improvements and th as is value of site improvement the resulting number
a value estimate for the subject property
the process of distilling value ranges into a single supportable opinion is called
reconciliation
Form 2055
the lender would like the appaiser to use only the sales comparision approach for that appraisal
the reconciliation process
uses factual data and statistics but is ultimately not a mathematical process
when reconciling the appraiser should
analyze all relevant data to detemine a final value based on the applicable appraisal approaches
appraisals are valid
one the date that the appraiser signs and dates the report
for self contained apprasial reports, information must be
described
which of the following is true of a summary report
it containes more detail than the restrited us reoprt but less than the self contained report
forms like the uniform residential appraisal report (URAR) are usually
summary reports
which of the following may be presented as form report, narrative style reports or oral reports
restricted use report
summary reports
self contained reports
all of the above
Chapter 15
Chapter 15
the top number in fraction is called teh
numerator
to conver a fraction into a decimal, you must
divide the top number by the bottom number
the charge for the use of money is
interest
which of the following is the correct formula for interst
interest = principal x rate x time
which of the following are three dimensional measurement
volume
which of the following is true of an arce
it may be any shape
a group within a large population would most accruately be described as
a sample of the group
you have been given the following home price of 160,000, 240,000, 260,000, 300, 000 what would the mean home price be for this set of homes
250,000
same as above what would be the MEDIAN
250,000
which of the folloiwng is not a measure of dispersion
mode