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