13 Ch3 Environmental Reporting quiz Flashcards
The Advisory Opinion that is titled The Appraisal of Real Property That May Be Impacted by Environmental Contamination is
AO-9
Certification 2 in the URAR says, in part, I identified and reported the xxx deficiencies that could affect the xxx soundness, or xx of the property.
physical, livability, structural integrity
The difference between the unimpaired and impaired values of the property being appraised is the definition of
diminution in value
An adverse effect on property value produced by the market’s perception of increased environmental risk due to contamination is the definition of
environmental stigma
When appraising property with environmental contamination, which RULE in USPAP is particularly pertinent?
the COMPETENCY RULE
If any party to the mortgage transaction informs the lender that an environmental hazard exists in or on the property or in the vicinity of the property, Fannie Mae requires that the lender must disclose that information to
both the borrower and the appraiser
Fannie Mae says in its guidelines, The typical residential real estate appraiser is neither expected nor required to be an expert in this specialized field. However, the appraiser has a responsibility to
note in the appraisal report any adverse conditions
The market value of the property being appraised with full consideration of the effects of its environmental condition and the presence of environmental contamination on, adjacent to, or proximate to the property is the definition of
impaired value. Conceptually, this could be considered the ‘as-is’ value of a contaminated property.
Many appraisers lack competency in environmental areas, but can conclude assignments using data prepared by others who are experts. Then, the appraisers should utilize
an extraordinary assumption
FHA states that if a property improvement was built prior to xxx, there may be a lead-based paint hazard.
1978
FHA states that if a property is located within xxx feet of an aboveground stationary storage tank containing more than xxx gallons of flammable material, the site is ineligible for an FHA loan.
300, 1,000
FHA guidelines require that a site be rejected if the property being appraised is subject to hazards, environmental contaminants, noxious odors, offensive sights, or excessive noises to the point of endangering the physical improvements or affecting the xxx of the property, its xxx or the xxx of its occupants.
livability, marketability, health and safety
The tool on the EPA website that details areas where there has been contamination is called
Enviromapper
VA says, When there is an indication of a potential environment problem (e.g., abandoned underground fuel storage tank), the appraisal report must be conditioned for correction of the problem according to xxx requirements.
any local, state or federal
How many levels of Environmental Site Assessment are there before the remediation?
two
FHA says if the property is within xxx feet of a stationary storage tank containing more than 1,000 gallons of flammable or explosive material, the site is ineligible.
300
Certification 2 in the URAR says, in part, I performed a xxx inspection of the xxx areas of the subject property.
complete visual, interior and exterior
Which Phase of Environmental Site Assessment involves the actual remediation of a site?
three
The market value of a known contaminated property, developed under the hypothetical condition that the property is not contaminated, is known as:
unimpaired value
Environmental Site Assessments are studies that are typically conducted by xxx
trained engineers
Certification 7 in the URAR says, I selected and used comparable sales that are xxx physically, and xxx the most similar to the subject property.
locationally, functionally
Certification 11 in the URAR says, I have xxx in appraising this xxx of property in this xxx
knowledge and experience, type, market area
A xxx site is one in which contamination has been generated.
source site
If a property is suspected of, or has, environmental contamination FHA requires that the appraiser
report it on Fannie Mae form 1004
Appraisers can do which of the following if they lack competency on an environmental issue?
use data prepared by others who are experts
Fannie Mae expects that when an appraiser has knowledge of any hazardous condition, he or she must xxx the hazardous condition in the appraisal report, xxx any influence that the hazard has on the property’s value and marketability, and make xxx in the overall analysis of the property’s value.
note, comment on, appropriate adjustments
A xxx site is not contaminated, is not adjacent to, but is close to the source site.
proximate
A site where contamination generated from a source has migrated to is known as which of the following?
non-source site
Appraisers can do which of the following if they lack competency on an environmental issue?
use data prepared by others who are experts
