13 Ch3 Environmental Reporting quiz

Question 1

The Advisory Opinion that is titled The Appraisal of Real Property That May Be Impacted by Environmental Contamination is

Answer 1

AO-9

Question 2

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.

Answer 2

physical, livability, structural integrity

Question 3

The difference between the unimpaired and impaired values of the property being appraised is the definition of

Answer 3

diminution in value

Question 4

An adverse effect on property value produced by the market’s perception of increased environmental risk due to contamination is the definition of

Answer 4

environmental stigma

Question 5

When appraising property with environmental contamination, which RULE in USPAP is particularly pertinent?

Answer 5

the COMPETENCY RULE

Question 6

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

Answer 6

both the borrower and the appraiser

Question 7

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

Answer 7

note in the appraisal report any adverse conditions

Question 8

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

Answer 8

impaired value. Conceptually, this could be considered the ‘as-is’ value of a contaminated property.

Question 9

Many appraisers lack competency in environmental areas, but can conclude assignments using data prepared by others who are experts. Then, the appraisers should utilize

Answer 9

an extraordinary assumption

Question 10

FHA states that if a property improvement was built prior to xxx, there may be a lead-based paint hazard.

Answer 10

1978

Question 11

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.

Answer 11

300, 1,000

Question 12

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.

Answer 12

livability, marketability, health and safety

Question 13

The tool on the EPA website that details areas where there has been contamination is called

Answer 13

Enviromapper

Question 14

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.

Answer 14

any local, state or federal

Question 15

How many levels of Environmental Site Assessment are there before the remediation?

Answer 15

two

Question 16

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.

Answer 16

300

Question 17

Certification 2 in the URAR says, in part, I performed a xxx inspection of the xxx areas of the subject property.

Answer 17

complete visual, interior and exterior

Question 18

Which Phase of Environmental Site Assessment involves the actual remediation of a site?

Answer 18

three

Question 19

The market value of a known contaminated property, developed under the hypothetical condition that the property is not contaminated, is known as:

Answer 19

unimpaired value

Question 20

Environmental Site Assessments are studies that are typically conducted by xxx

Answer 20

trained engineers

Question 21

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.

Answer 21

locationally, functionally

Question 22

Certification 11 in the URAR says, I have xxx in appraising this xxx of property in this xxx

Answer 22

knowledge and experience, type, market area

Question 23

A xxx site is one in which contamination has been generated.

Answer 23

source site

Question 24

If a property is suspected of, or has, environmental contamination FHA requires that the appraiser

Answer 24

report it on Fannie Mae form 1004

Question 25

Appraisers can do which of the following if they lack competency on an environmental issue?

Answer 25

use data prepared by others who are experts

Question 26

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.

Answer 26

note, comment on, appropriate adjustments

Question 27

A xxx site is not contaminated, is not adjacent to, but is close to the source site.

Answer 27

proximate

Question 28

A site where contamination generated from a source has migrated to is known as which of the following?

Answer 28

non-source site

Question 29

Appraisers can do which of the following if they lack competency on an environmental issue?

Answer 29

use data prepared by others who are experts