Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Basic Appraisal Principles > Basic Appraisal Principles > Flashcards

Basic Appraisal Principles Flashcards

1
Q

True or False: An applicant for Certified General appraiser must possess at least an associate’s degree from an accredited college or university.

A

False: Bachelor’s Degree Minimum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The current requirements for real property appraiser licensing and certification went into effect on

A

May 1, 2018

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A certified residential appraiser needs ____ hours of continuing education per year to renew his or her certification.

A

14

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which entity is responsible for establishing the requirements to become an appraiser?

A

the AQB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

True or False: Some state agencies employ full-time staff appraisers.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

According to the 2018 AQB Criteria, an applicant for Certified General Appraiser must obtain _______ experience hours in no fewer than _____ months.

A

3,000, 18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

True or False: Attorneys often engage appraisers to complete assignments for estates and divorces.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The appraisal of what type of property is more likely to be affected by local neighborhood conditions?

A

a single-family residence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The four components of the Appraiser Qualification Criteria include Continuing Education, Examination, ____________, and ______________.

A

Experience and Qualifying Education

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which of the following situations would NOT normally require an appraisal?

  • mortgage finance
  • title insurance
  • estate settlement
  • condemnation
A

title insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

An appraiser is “One who is expected to perform valuation services competently and in a manner that is independent, ___________, and ____________.

A

impartial, objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The number of required classroom hours for Certified General Appraisers under the current AQB criteria is ____ hours.

A

300

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The nationally recognized ethical and performance standards for appraisers are known as

A

Uniform Standards of Professional Appraisal Practice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Under the 2018 AQB Criteria, an applicant for a Certified Residential credential must hold a(n) _____________.

A

bachelor’s degree, or alternative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

If you have specific questions about appraisal certification or licensure requirements in your state, you should

A

contact the appraiser licensing and certification agency in your state

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The Licensed Residential Real Property Appraiser classification applies to the appraisal of non-complex one to four residential units having a transaction value __________ and complex one to four residential units having a transaction value ____________.

A

Less than $1,000,000, less than $250,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Under the 2018 AQB criteria, an Appraiser Trainee is permitted to have ________ supervising appraiser, but a supervising appraiser may not supervise ________ trainees.

A

More than one, more than three

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The number of required classroom education hours for Licensed Residential Appraisers under the 2018 AQB Criteria is ____ hours.

A

150

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

In 1987, eight U.S. appraisal organizations formed

A

The Appraisal Foundation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

True or False? The Board of Trustees acts as the executive board for The Appraisal Foundation.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

True or False? The Appraisal Foundation has significant legal authority to enforce USPAP.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

In the 1970s, who developed uniform rules for mortgage underwriting?

A

Fannie Mae and Freddie Mac

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

True or False? The requirements of USPAP apply equally to appraisers and their clients.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Which TAF advisory council consists of for-profit entities?

A

IAC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

True or False? Valuation Advisories, issued by The Appraisal Foundation, provide guidance that is binding on real property appraisers.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Which entity is responsible for appointing members to the ASB and AQB?

A

the Board of Trustees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The state regulatory agency for California appraisers is called the

A

Bureau of Real Estate Appraisers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

The state regulatory agency for Missouri appraisers is called the

A

Real Estate Appraisers Commission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

True or False? The Appraisal Subcommittee’s mission is to ensure that real estate appraisers who perform appraisals in federally-related transactions are sufficiently trained and tested to assure competency and independent judgment.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Which of these entities is NOT a member of the Appraisal Subcommittee?

A

The Appraisal Foundation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Which of these is NOT a protected class, according to the Fair Housing Act?

A

political party affiliation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

True or False? The ASC is responsible for maintaining a National Registry of appraisers.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

The ______ maintains a National Registry of licensed and certified appraisers.

A

ASC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The largest professional appraisal society in the U.S. is the

A

Appraisal Institute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

The Fair Housing Act prohibits discrimination in housing because of all of the following statuses EXCEPT

  • Race or color
  • Credit rating
  • Sex
  • Religion
A

Credit rating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

The Savings and Loan Crisis happened in the

A

Late 1980s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Only the _______ has the authority to amend or interpret USPAP.

A

ASB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

ECOA applies to all the following types of loans EXCEPT

  • Condominiums
  • Manufactured homes
  • Junior liens
  • Vacant land
A

Vacant land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

The Uniform Standards of Professional Appraisal Practice (USPAP) was copyrighted by:

A

The Appraisal Foundation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

The _________ monitors and reviews the practices, procedures, activities and organizational structure of The Appraisal Foundation.

A

ASC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

The Uniform Standards of Professional Appraisal Practice (USPAP) was developed by the Ad Hoc Committee and was copyrighted by The _________________.

A

Appraisal Foundation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

________ has regulatory authority in enforcing the housing requirements in most civil rights legislation.

A

HUD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

True or False? An appraiser who selects only the data that supports the contract sale price in an appraisal has violated USPAP.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

True or False? The mere fact that an appraiser has previously appraised a property is typically NOT considered confidential information under USPAP.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

USPAP requires an appraiser to be

A

objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

True or False? If not required to comply with USPAP by law, regulation, or agreement with the client, an appraiser may voluntarily choose to comply with USPAP.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

A client has requested that an appraiser value a property that is improved with an old dilapidated single family home, and asks the appraiser not to mention the existence of the home in the appraisal report. Which statement is TRUE regarding this situation?

A

It would be misleading if the appraiser did not disclose the presence of this structure in the appraisal report.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this payment have to be disclosed?

A

In the certification and any transmittal letter where conclusions are stated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

An appraiser states to a client that the appraisal fee will be $100 higher than the standard fee because the appraiser’s value opinion is for the property is over $500,000. Is it a violation of USPAP for the appraiser to quote the fee in this manner?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

When an appraiser discloses that she paid a fee for the procurement of an assignment, does USPAP require her to disclose the AMOUNT of the fee?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

When should an appraiser’s compensation be dependent on reporting of a predetermined value conclusion?

A

Never

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Appraiser Amy agrees to pay a fee to be included on Lender B’s “approved appraiser” list. Which statement is TRUE regarding this situation?

  • This is permissible under USPAP as long as it is disclosed.
  • This is a violation of USPAP, and Amy is subject to disciplinary action.
  • This is permissible under USPAP and does not require disclosure.
  • USPAP does not address this issue.
A

This is permissible under USPAP as long as it is disclosed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

“A preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity in an assignment” is the definition of which USPAP term?

A

Bias

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

An appraiser accepts an appraisal on a property that is under contract for purchase. Based on a request from the client, the appraiser agrees to select and use only the data that supports the pending contract sale price of the subject property. Which statement is TRUE regarding this situation?

  • The appraiser has violated the ETHICS RULE by doing this.
  • The client has violated USPAP by asking the appraiser to provide a predetermined value.
  • The appraiser has fulfilled his obligation under USPAP to analyze the pending sale price of the property.
  • The appraiser has earned his fee by doing exactly what the client asked for.
A

The appraiser has violated the ETHICS RULE by doing this.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

May an appraiser disregard her USPAP obligations if she does not charge a fee for the assignment?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

True or False? Webster’s Dictionary defines ethics as relating to the principles established by the world’s most common religions.

A

False: They define ethics as relating to what is good or bad; having to do with moral duty and obligation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

When clients began asking for faxed copies of appraisal reports

A

appraisers typically still had to mail hard copies of reports anyway

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

How are most dates in a UAD-compliant appraisal report required to be formatted?

A

MM/DD/YYYY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

What is the most recent innovation in photography for appraisers?

A

digital cameras

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

As it pertains to appraisers, what does the abbreviation UAD stand for?

A

Uniform Appraisal Dataset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

What is the biggest issue when creating GIS maps?

A

the maps must all be of the same scale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

When calculating the square footage of a condominium unit, an appraiser must use

A

interior measurements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

True or False? Prices of laser measuring devices have been declining over the last few years.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

True or False? There is only one company in the U.S. that produces software programs for appraisers.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

____________ cameras have become an essential tool for most appraisers.

A

Digital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

The largest appraisal software company is

A

ala mode

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Today, most appraisals are transmitted in a(n) _______ format.

A

PDF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

When comparing printers, make sure to compare the cost per ___________

A

Printed page

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

When calculating square footage of a condominium unit, an appraiser must use

A

interior measurements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

The latest technology in measurements is

A

laser measuring device

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

The two major sketch programs are

A

Apex and Winsketch

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

EDI stands for

A

Electronic Data Interchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Land is a long lasting asset, and has a long economic life as compared to other assets. What characteristic of land does this refer to?

A

durability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

“An identified parcel or tract of land, including improvements, if any” is the definition of

A

real estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

A client asks an appraiser to omit the client’s identity from the appraisal report. What can the appraiser do?

A

omit the client’s identity from the report, but identify the client in the workfile

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of

A

transferable development rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Which of these would be considered a public restriction on real property ownership?

  • mortgage
  • deed restrictions
  • encumbrances
  • escheat
A

escheat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

True or False? When people buy and sell land and buildings in the marketplace, they are actually buying and selling real property rights.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

A property owner hires a contractor to construct an addition on his home, but does not pay the contractor when the work is completed. The contractor may place a __________ on the property to recover the debt.

A

mechanic’s lien

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

True or False? By exercising one of his/her bundle of rights, a property owner may be giving up another one of those rights from the bundle.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Trade fixtures are only found in ___________ property.

A

rented

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

“A document or a clause in a document in which the borrower accepts responsibility for the repayment of a debt” is the definition of

A

mortgage note

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

The process of eminent domain is administered through

A

condemnation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

“The right of government, through which property is regulated, to protect public safety, health, morals, and general welfare” is the definition of

A

police power

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Which would NOT be a characteristic of a good appraisal?

  • concise
  • unsupported
  • accurate
  • unbiased
A

unsupported

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

Which of the following would MOST LIKELY be considered personal property?

  • window air conditioner
  • built-in cooktop
  • light fixtures
  • microwave mounted under a cabinet
A

window air conditioner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Police power would include all of the following EXCEPT

  • building codes
  • zoning
  • taxation
  • fire codes
A

taxation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

Private restrictions on property rights include all of the following EXCEPT

  • mortgages
  • escheat
  • mechanic’s liens
  • deed restrictions
A

escheat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

Physical land and appurtenances attached to the land is the definition of

A

real estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

“A pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditions” is the definition of

A

mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

A rectangular lot measures 222.5 feet by 1372.25 feet. How many acres is this?

A

7.01 acres (multiply the width of the lot by the length, in feet, to get the square footage. Then divide the square footage by 43,560 to get the number of acres)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

True or False? A lot and block legal description always gives the lot size and dimensions.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Which is NOT one of the primary systems of legal descriptions?

  • rod and chain
  • lot and block
  • rectangular survey
  • metes and bounds
A

rod and chain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

The rectangular survey system is also known as the

A

government survey system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

How many acres are in a quarter-section per rectangular survey system?

A

160

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

Which system of legal descriptions is based on standardized measurements and consistent rectangles and squares?

A

rectangular survey

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

A lot contains 5.62 acres. It sells for $225,000. How much did it sell for per acre?

A

$40,036

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

In the rectangular survey system, a township contains ______ square miles.

A

36

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

In the rectangular survey system, a section contains _____ square mile(s)

A

1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
100
Q

How many degrees are in a full circle?

A

360

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
101
Q

Which system of legal descriptions uses townships?

A

Rectangular Survey

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
102
Q

How many links are there in Gunter’s chain?

A

100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
103
Q

A chain contains ____ feet.

A

66

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
104
Q

A property has a market value of $300,000. The owner has a first mortgage of $200,000 and a second mortgage of $40,000. What is the market value of the fee simple estate?

A

$300,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
105
Q

An easement that has, by definition, both dominant and servient tenements is

A

an easement appurtenant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
106
Q

True or False? When a property is leased, two separate estates are created.

A

True (Partial Interest. When a property is leased, it creates two separate estates or interests. One belongs to the owner of the property and the other belongs to the tenant.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
107
Q

True or False? Fee simple estate is not limited by the governmental powers of taxation, eminent domain, police power, and escheat.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
108
Q

Tenancy by the entirety is a form of ownership reserved for

A

spouses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
109
Q

Joint tenancy has the right of survivorship. What does this mean?

A

when a joint tenant dies, his/her share goes to the surviving joint tenants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
110
Q

What type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit?

A

cooperative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
111
Q

A property is owned as tenancy in severalty. How many owners are there?

A

1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
112
Q

The fullest and most complete type of estate is

A

fee simple

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
113
Q

“Trespassing on the domain of another” is the definition of

A

encroachment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
114
Q

“Type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development; usually includes common area and common area maintenance obligations in the form of owners association dues” is the definition of

A

PUD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
115
Q

A leasehold interest may have value when

A

the contract rent is less than market rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
116
Q

A drainage easement is an example of a(n)

A

negative easement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
117
Q

A facade easement is a type of________________ easement.

A

historic preservation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
118
Q

Which of the following is NOT a partial estate?

  • fee simple
  • life estate
  • leased fee estate
  • leasehold estate
A

fee simple

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
119
Q

The landlord’s ownership interest in a leased property would be

A

leased fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
120
Q

“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat” is the definition of

A

fee simple

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
121
Q

From the buyer’s standpoint, what is the weakest type of deed?

A

quitclaim deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
122
Q

In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.

A

trustee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
123
Q

The statute of limitations for suing for breach of an oral contract is __________ for written contracts.

A

shorter than

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
124
Q

What is the purpose of a state’s statute of frauds?

A

requires certain documents to be in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
125
Q

Which of these is NOT necessary in creating a valid contract that would be binding and enforceable on all parties?

  • competent parties
  • reasonable price
  • lawful objective
  • consideration
A

reasonable price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
126
Q

The general rule of contracting with minors is that a contract with a minor is

A

voidable at the minor’s option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
127
Q

A(n) ________ contract is one that has not been fully performed or completed.

A

executory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
128
Q

Contracts for the sale of real estate must be __________ in order to be enforceable.

A

in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
129
Q

Breach of contract is also known as

A

default

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
130
Q

In most appraisals for residential mortgage lending transactions, personal property items are

A

not included in the real property appraisal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
131
Q

A lease that includes a specific level of rent that continues throughout the lease term is a(n)

A

flat rental lease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
132
Q

What type of lease requires the landlord to pay all of the property’s operating and fixed expenses?

A

gross lease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
133
Q

A(n) __________ contract is one that results from the failure of the parties to meet some legal requirement.

A

voidable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
134
Q

Which is true of an express contract?

  • an example would be a listing agreement
  • the terms must be stated in words
  • Both A and B
A

Both A and B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
135
Q

Which would NOT be a required element of a valid deed?

  • must be recorded
  • legal description
  • must be in writing
  • a granting clause
A

must be recorded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
136
Q

“A written, legal instrument that conveys an estate or interest in real property when it is executed and delivered” is the definition of a

A

deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
137
Q

All of the following are required ingredients of a valid contract EXCEPT

  • competent parties
  • mutual agreement
  • legal description
  • consideration
A

legal description

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
138
Q

“A manifestation of willingness to enter into a bargain, which creates in the offeree the power of acceptance” is the definition of a(n)

A

offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
139
Q

The weakest form of deed is the ___________ deed.

A

quitclaim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
140
Q

A deed of trust is similar to a

A

mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
141
Q

A real estate contract is a(n)

A

bilateral agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
142
Q

The ___________ rule states that written contracts take precedence over oral agreements.

A

parol evidence

143
Q

The seller of a property is called the

A

grantor

144
Q

If a seller defaults in a real estate contract, the buyer may take all of these actions EXCEPT

  • rescind the contract and recover the earnest money - - deposit
  • file a suit calling for specific performance, to force the seller to sell the property
  • sue the seller for compensatory damages
  • sue the seller for punitive damages
A

sue the seller for punitive damages

145
Q

A firm agreement to perform an act, refrain from acting or make a payment or delivery” is the definition of a(n)

A

promise

146
Q

“The act of transferring an interest in property or some right (such as contract benefits) to another” is the definition of

A

assignment

147
Q

An agreement of parties to a contract to substitute a new contract for the old one is called

A

novation

148
Q

According to the principle of supply and demand, the price of a commodity varies ___________ with supply.

A

inversely

149
Q

The principle of supply and demand states that the price of a commodity varies ________ with demand.

A

directly

150
Q

Which type of market is MOST likely to be characterized by higher prices and a shortage of homes for sale?

A

seller’s market

151
Q

In real property, a market is defined in terms of

A

competition

152
Q

Because real estate is immobile, it is

A

sensitive to nearby influences

153
Q

True or False? Real property is typically purchased with cash.

A

False

154
Q

Which of these would be considered the most INEFFICIENT market?

  • the real property market
  • a local farmer’s market
  • the New York Stock Exchange
  • eBay
A

the real property market

155
Q

“The area associated with a subject property that contains its direct competition” is the definition of a

A

market area

156
Q

“A market characterized by numerous transactions.” is the definition of a(n) _________ market.

A

active

157
Q

“An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users” is the definition of a(n) __________ market.

A

seller’s

158
Q

When supply and demand are out of balance, they tend to move towards

A

equilibrium

159
Q

“A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises” is the definition of

A

neighborhood

160
Q

The principle of supply and demand states, in part, that the price of real property varies directly with ________ and inversely with __________.

A

demand, supply

161
Q

“A market in which buyers have the advantage; exists when market prices are relatively low due to an oversupply of property or reduced buyer demand” is the definition of a(n) ___________ market.

A

buyer’s

162
Q

A problem with the real property market is that the amount of _______ is slow to change.

A

supply

163
Q

True or False? Stocks are considered a good investment because the return OF your investment is guaranteed.

A

False

164
Q

You are an investor who owns a parcel of real property. You want to cash out your investment, and it takes you a year to market your property and close the sale. What investment factor does this demonstrate?

A

liquidity

165
Q

True or False? The burden of managing the investment is one of the reasons why real property investors typically demand higher yields.

A

True

166
Q

When was the Fed founded?

A

1913

167
Q

The Federal Reserve consists of ____ regional banks

A

12

168
Q

Who owns the Fed?

A

No one, it is independent

169
Q

To whom is the Fed accountable?

A

Congress

170
Q

As part of its monetary policy, the Fed can influence both the _______ of money and the _______ of money.

A

supply, cost

171
Q

Which of these entities needs to invest money as a fundamental part of their operations?

  • government
  • insurance companies
  • pension funds
  • all of these
A

All of these

172
Q

How are members of the Board of Governors of the Federal Reserve System selected?

A

they are appointed by the President and confirmed by the Senate

173
Q

The interest rate that is charged by the Fed when lending money to banks is called the _______ rate.

A

discount

174
Q

The rate that banks employ when lending money to their highest rated customers is called the __________ rate.

A

prime

175
Q

Which of the following is NOT a commodity?

  • gold
  • real estate
  • money
  • market area
A

market area

176
Q

The FDIC insures deposits up to $______________.

A

$250,000

177
Q

Which of the following typically generates the highest return on investment?

  • savings account
  • money market
  • certificate of deposit
  • real estate
A

Real Estate

178
Q

The “price” of money is

A

an interest rate

179
Q

Money market is defined as the interaction of buyers and sellers who trade

A

short-term money instruments

180
Q

Which investment alternative has the least liquidity?

A

real estate

181
Q

What type of loans are assumable without the permission of the lender?

A

Very few loans of any type are assumable without lender permission

182
Q

Up until the 1970s, mortgage lending was typically done at the ______ level.

A

local

183
Q

True or False? Fannie Mae and Freddie Mac are now defunct.

A

True

184
Q

Reverse annuity mortgages are primarily intended for what type of borrower?

A

senior homeowners

185
Q

“A pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditions” is the definition of

A

mortgage

186
Q

A mortgage loan that is not government-insured or guaranteed is considered

A

a conventional mortgage

187
Q

“The process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund” is the definition of

A

amortization

188
Q

Which of the following is a guaranteed loan?

A

VA

189
Q

What kind of mortgage is not fully amortized at maturity, and thus requires a lump sum payment of the outstanding balance?

A

balloon

190
Q

A point is ____ percent of the amount of the ___________.

A

1, mortgage loan

191
Q

A mortgage that has priority over all other mortgage liens on a property is a

A

first mortgage

192
Q

The government entity that oversees the conservatorship of Fannie Mae and Freddie Mac is

A

Federal Housing Finance Agency (FHFA)

193
Q

The primary participants in the secondary mortgage market are

A

Fannie Mae, Freddie Mac, and Ginnie Mae

194
Q

Savings banks are __________ owned.

A

mutual or stockholder

195
Q

A purchaser bought a property for $215,000, put 15% down and borrowed the rest at 6.75% interest for 25 years. The lender charged 2.5 points at the closing. How much was paid for the points?

A

$4,568.75

$215,000 x 15% = $32,250 Down Payment

$215,000 - 32,250 = $182,750 Amount financed

$182,750 x 2.5% = $4,568.75 Amount paid for points

196
Q

In 1968, FNMA was split into two organizations, which were

A

Fannie Mae and Ginnie Mae

197
Q

Mortgage assumptions are

A

attractive when rates are rising

198
Q

True or False? Building codes have no impact on property values.

A

False

199
Q

Value is influenced by

A

external market forces

200
Q

True or False? All major cities in the U.S. have zoning ordinances.

A

False

201
Q

Taxes would be a(n) _____________ force affecting property values.

A

governmental

202
Q

The cost of construction is based on three factors. What are they?

A

land, materials, and labor

203
Q

After the crash of the mortgage lending industry in the late 2000s, lenders that remained in business

A

tightened their underwriting standards

204
Q

Generally speaking, low interest rates encourage ___________, while high interest rates encourage ___________.

A

borrowing, saving

205
Q

True or False? Over the last several years in the U.S., there has been a substantial decrease in the number of people working from home.

A

False

206
Q

__________ industries consist of major employers in an area, that are net importers that produce goods that are shipped outside the region.

A

Basic

207
Q

True or False? Topography may preclude development entirely in some areas.

A

True

208
Q

Environmental influences on property values would include all of these EXCEPT

  • construction costs
  • soil conditions
  • man-made hazards
  • topography
A

construction costs

209
Q

True or False? The presence of man-made hazards may affect property values over a wide geographic area.

A

True

210
Q

“The ability of an individual or group to participate in a market, i.e., to acquire goods and services with cash or its equivalent” is the definition of

A

effective purchasing power

211
Q

Which is NOT a reason for smaller household sizes?

  • More adults never marrying
  • Declining birth rate
  • More single mothers
  • More families with more than four children
A

More families with more than four children

212
Q

An example of something that likely has no value in most situations is

  • air
  • a cup of pencils
  • a lot with hilly topography
  • a building that is in poor condition
A

air

213
Q

Economic forces would include all of the following EXCEPT

  • zoning and building codes
  • interest rates
  • unemployment rates
  • cost of construction
A

zoning and building codes

214
Q

Which federal agency is responsible for monitoring coastal habitats?

A

NOAA

215
Q

Which is NOT an economic force?

A

climate

216
Q

The majority of American households today consist of ________ person(s).

A

one or two

217
Q

Governmental forces would include all of the following EXCEPT

  • zoning
  • unemployment rates
  • taxes
  • fire protection
A

unemployment rates

218
Q

“A purchaser’s wish for an item to satisfy human needs (e.g. shelter, clothing, food, companionship) or individual wants beyond essential life-support needs” is the definition of

A

desire

219
Q

“The present or anticipated undersupply of an item relative to the demand for it….” is the definition of

A

scarcity

220
Q

The four main categories of external market forces are: governmental, ____________, social, and ________________.

A

environmental, economic

221
Q

The most prominent federal agency in the environmental arena is

A

EPA

222
Q

The first citywide zoning regulations occurred in

A

New York City

223
Q

The prime source for population demographics is

A

U.S. Bureau of the Census

224
Q

“The amount asked, offered, or paid for a property” is the definition of

A

price

225
Q

A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The appraiser’s opinion of $525,000 represents the _________ of the property.

A

value

226
Q

“The monetary relationship between properties and those who buy, sell, or use those properties” is the definition of

A

value

227
Q

A bank acquires a property at foreclosure, and they need to sell it very quickly. They ask an appraiser to provide them a value opinion based on a restricted marketing time, and considering they are under extreme compulsion to sell. What type of value is this client asking for?

A

liquidation value

228
Q

When is an appraiser required to develop an opinion of reasonable exposure time in an appraisal?

A

when reasonable exposure time is a component of the definition of value being used

229
Q

What type of value requires an appraiser to consider the expectations of a particular investor or class of investors?

A

investment value

230
Q

What type of value is based on a specific use, which may or may not be the property’s highest and best use?

A

value in use

231
Q

When is an appraiser required under USPAP to develop an opinion of reasonable exposure time in an appraisal?

A

if reasonable exposure time is a component of the value definition being developed

232
Q

“The market value of an established and operating business including the real property, personal property, financial assets, and the intangible assets of the business” is the definition of:

A

market value of the going concern

233
Q

The market value definition says that __________ is allowed for exposure in the open market.

A

a reasonable time

234
Q

Which of these property types would NOT typically be appraised based for the market value of the going concern?

  • hotel
  • restaurant
  • retail sales property
  • single-family home
A

single-family home

235
Q

A value that cannot be imputed to any part of the physical property is called ___________ value.

A

intangible

236
Q

“The amount a particular purchaser agrees to pay and a particular seller agrees to accept under the circumstances surrounding their transaction” is the definition of

A

price

237
Q

Exposure time is a _____________ developed by the appraiser.

A

retrospective opinion

238
Q

A bank acquires a property at foreclosure, and they need to sell it very quickly. They ask an appraiser to provide them a value opinion based on a restricted marketing time, and considering they are under extreme compulsion to sell. What type of value is this client asking for?

A

liquidation value

239
Q

A transaction between unrelated parties who are each acting in his or her own best interest is the definition of

A

arm’s-length transaction

240
Q

A comparable property was offered on the market for 8 months at $429,000, with no offers. It was reduced to $419,000 and was on the market for another 6 months. It was reduced again to $359,000 and it sold for $355,000 in 3 months. What is the reasonable exposure time indicated by this property?

A

3 months (Exposure time starts when buyers begin to have interest in the home)

241
Q

The principle of supply and demand states that price varies _______ with demand.

A

directly

242
Q

The basic economic principles, such as anticipation and substitution, apply in

A

any economic endeavor

243
Q

True or False? Basic economic principles apply in the valuation of real property only.

A

False

244
Q

True or False? Each of the four agents of production requires a return to make it work.

A

True

245
Q

True or False? When developing an opinion of site value of an improved property, an appraiser needs to consider the highest and best use of the property as though vacant.

A

True

246
Q

True or False? The highest and best use of a property is always to construct some type of building or improvement on it.

A

False

247
Q

Supply and price move in a(n) ____________ relationship.

A

inverse

248
Q

In the agents of production theory, the return on land would be __________ and the return on labor would be ________.

A

rent, wages

249
Q

“In appraisal, the concept that the value of an inferior property is enhanced by its association with better properties of the same type” is the definition of the principle of

A

progression

250
Q

When estimating the value of a swimming pool to a residential property, the most important principle is the principle of

A

contribution

251
Q

If there is anything at all left after satisfying the four agents of production, the excess profit would be returned to the land. This is the principle of

A

surplus productivity

252
Q

Which statement is FALSE concerning the highest and best use of land as though vacant?

  • It could be to leave it vacant
  • It could be for projected development
  • This analysis can only be applied if there are no existing improvements
  • It could be the existing use
A

This analysis can only be applied if there are no existing improvements

253
Q

Normally the first step in highest and best use determination is to investigate the uses that are

A

legally permissible

254
Q

How many criteria are used in highest and best use analysis?

A

4

255
Q

What process would an appraiser use to identify submarkets within a larger market?

A

market segmentation

256
Q

A subject property’s market area would be defined as

A

the area from where demand comes and that contains its competition

257
Q

“A process for examining the demand and supply of a property type and the geographic market area for that property type” is the definition of ____________ analysis.

A

market

258
Q

True or False? Availability of financing is part of supply analysis because builders and developers need to be able to obtain financing in order to build homes or buildings.

A

True

259
Q

A large local employer announces plans for immediate expansion, which will add 400 new jobs. There are only 180 houses available for sale in the market at this time. What is MOST likely to happen in the near future?

A

the number of building permits issued will increase

260
Q

True or False? While material costs vary greatly throughout the United States, labor costs do not vary with location.

A

False

261
Q

“The differentiation of a subject property from other properties on the basis of subclassifications with differing product characteristics” is the definition of

A

disaggregation

262
Q

“Study of the economy as an aggregate system, focusing on national/domestic production, national/domestic income, the supply of money, the rate of inflation, the national budget, the balance of trade, and the interrelationships among constituent sectors” is the definition of

A

macroeconomics

263
Q

A local employer announces plans for immediate expansion, which will add 600 new jobs. There are only 120 houses available for sale in the market at this time. What is MOST likely to happen in the near future?

A

the number of building permits issued will increase

264
Q

“Buyers and sellers of particular real estate and the transactions that occur among them” is the definition of a(n)

A

real estate market

265
Q

When appraising a 250-store regional shopping mall, an appraiser is most likely to conclude that the market area is

A

national or international

266
Q

“The process by which submarkets within a larger market are identified and analyzed” is the definition of

A

market segmentation

267
Q

Researching and analyzing the number of building conversions in process would be considered part of __________ analysis.

A

supply

268
Q

“An analysis of the market conditions of supply, demand, and pricing or the demographics of demand for a specific property type in a specific area” is the definition of

A

market study

269
Q

.0091 is the same as

A

.91%

270
Q

You bought a property 2 years ago for $400,000. You sold it today for $376,000. What was your average percent of loss per year?

A

Percent Change. $400,000 - $376,000 = $24,000. $24,000 ÷ 400,000 = .06. .06 ÷ 2 = .03 x 100 = 3%

271
Q

What is 16.9% of 112,456.25?

A

19,005.11

272
Q

35% of the houses in a neighborhood are split levels and 24% are ranches. There are a total of 325 houses. How many are ranches?

A

78 (325 X .24 = 78)

273
Q

In the following set of numbers (18, 26, 29, 18, 44) what is the median?

A

26 (organize and find middle)

274
Q

In the following set of numbers (18, 26, 29, 18, 44) what is the mode?

A

18 (occurs twice)

275
Q

In the following set of numbers (18, 26, 29, 18, 44) what is the mean?

A

27 (add all and divide by total set of numbers, in this case, 5)

276
Q

Your living room measures 14 x 24 feet. You want to re-carpet it. The carpet company says it will cost $15.50 per square yard plus $2.75 per square yard for the pad. How much will it cost you? (HINT: There are 9 square feet in a square yard.)

A

C - $681.27

14 x 24 = 336 sf / 9 = 37.33 sy

$15.50 / $2.75 = $18.25 x 37.33 = $681.27

277
Q

You are analyzing sale prices of lots in a subdivision. There have been 7 lot sales in the subdivision over the last year. They sold for $75,000, $76,000, $76,500, $80,000, $80,500, $80,500, and $82,500. What is the median sale price of these lots?

A

$80,000

278
Q

You are analyzing sale prices of lots in a subdivision. There have been 7 lot sales in the subdivision over the last year. They sold for $75,000, $76,000, $76,500, $80,000, $80,500, $80,500, and $82,500. What is the mean sale price of these lots?

A

$78,714

279
Q

What is the mean of these numbers: 124.5, 146.8, 152, 187.9, 153, 217.98, 12, 542.66, 45.7, 71.44, 158.04?

A

164.73

280
Q

USPAP defines _________ as the amount asked, offered, or paid for a property.

A

price

281
Q

“Trespassing on the domain of another” is the definition of

A

encroachment

282
Q

Which of the following would NOT be considered a negative easement?

  • access right of way
  • conservation easement
  • drainage easement
  • historic preservation easement
A

access right of way

283
Q

Who retains final authority over revisions to USPAP?

A

the Appraisal Standards Board

284
Q

Eric pays $35,000 to have an inground swimming pool constructed in his back yard. When he sells the property, he only receives $10,000 more for his property than what similar property sold for without a pool. This is an example of the principle of

A

contribution

285
Q

The Uniform Commercial Code covers the sale of goods over $________.

A

500

286
Q

You apply for a mortgage. The lender will allow you to spend up to 28% of your annual income for housing costs, including your mortgage, property taxes, and insurance. Your income is $1,472 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?

A

1472 x (52 / 2) / 12 * .28 = $893.01

287
Q

Which valuation approach relies most heavily on the principle of substitution?

A

sales comparison

288
Q

Which of the following statements about offers is FALSE?

  • An offer may never be revoked once delivered to the offeree.
  • An offer may be revoked at any time prior to communication of the acceptance of the offer.
  • An offer may be revoked by the maker of the offer, by giving notice of revocation to the person to whom the offer was made.
  • An offer may be revoked by the lapse of time set forth in the offer.
A

An offer may never be revoked once delivered to the offeree.

289
Q

“A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill” is the definition of ____________ value.

A

intangible

290
Q

A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the acreage amount to two decimal places.

A

(178 x 464) = 82,592 sqft
82,592 / 43,560 = 1.86 (rounded to 1.9)
$80,000 / 1.9 = $42,105

291
Q

“The interaction of buyers and sellers who trade long-term or intermediate-term money instruments” is the definition of the _____________ market.

A

capital

292
Q

Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the median sale price?

A

$174,500

293
Q

You apply for a mortgage and the lender will allow you to spend up to 30% of your annual income for housing costs. These housing costs will include your mortgage, property taxes, and insurance. Your income is $1,635 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?

A

1635 x (52 / 2) / 12 * .30 = $1,062.75

294
Q

“The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires” is the definition of

A

leased fee interest

295
Q

The four elements of value are desire, _________, scarcity, and ________.

A

utility, effective purchasing power

296
Q

In property measurement, a chain contains 100 links, which measures _______ feet.

A

66

297
Q

“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of

A

district

298
Q

The first appraiser organizations were formed in the

A

1930s

299
Q

You want to buy a house for $216,500. You can get a loan for 90% of value. You will also have to pay 1.5 points on the loan. If you have to pay both the down payment and the loan points at closing, how much will you have to deliver to closing to cover these?

A

$24,572.75

$216,500 x 10% = $21,650 Down Payment
$216,500 - 21,650 = $194,850 Amount financed
$194,850 x 1.5% = $2922.75 Amount paid for points
$21,650 + $2,922.75 = $24,572.75

300
Q

Which is NOT a characteristic of tenancy in common?

  • no limit to the number of tenants in common
  • the ownership does not have to be in equal amounts
  • there is a right of survivorship
  • interest can be sold or passed to heirs
A

there is a right of survivorship

301
Q

Modern definitions of the word “appraisal” have replaced the word _______ with ________.

A

estimate, opinion

302
Q

A facade easement is a type of_______________ easement.

A

historic preservation

303
Q

The strongest form of deed is the __________ deed.

A

warranty

304
Q

Under the current qualifying education criteria, there are college-level course requirements for __________ classifications.

A

both Certified Residential and Certified General

305
Q

The median price of homes sold in your county 6 months ago was $224,650. Prices have been increasing at the rate of 7% per year. What is the median price of homes today?

A

$232,513

225,650 * 1.035

306
Q

Which of these factors would result in a violation of USPAP if the appraiser based his or her appraisal fee on it?

  • the appraiser’s value opinion
  • the borrower’s estimate of value
  • the square footage of the home
  • none of these
A

the appraiser’s value opinion

307
Q

All of the following would be considered to be economic influences on value EXCEPT

  • interest rates
  • zoning
  • unemployment rates
  • Consumer Price Index
A

zoning

308
Q

The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT

  • ASB
  • FDIC
  • OCC
  • FRB
A

ASB

309
Q

An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this payment have to be disclosed?

A

in the certification and transmittal letter where conclusions are stated

310
Q

Which would NOT be an example of demand in a real property market?

  • increasing immigration into an area
  • decreasing building permits
  • decreasing vacancy rates
  • increasing unemployment
A

decreasing building permits

311
Q

What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95?

A

35.5

312
Q

The current number of appraisal education hours required for Certified General Appraiser applicants is ______ hours.

A

300

313
Q

The four components of the Appraiser Qualification Criteria are:

A

qualifying education, examination, experience, continuing education

314
Q

Valuation Advisories, issued by The Appraisal Foundation, are considered:

A

voluntary guidance

315
Q

Which of the following types of investments has historically generated the highest return on investment?

  • real estate
  • savings account
  • money market fund
  • certificate of deposit
A

real estate

316
Q

“A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be sold to landowners in another location” are called _____________ rights.

A

transferable development

317
Q

When estimating the value of a fireplace in a single-family home, the most important principle is the principle of

A

contribution

318
Q

“The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc.” is the definition of _________ rights.

A

subsurface

319
Q

You purchased a house two years ago for $190,000. It has appreciated an average of 3% per year since the time of purchase. What is its current value?

A

$201,571

190,000 x 1.03 x 1.03

320
Q

Sonic measuring devices employ _____________ to take measurements.

A

sound waves

321
Q

The ________ is responsible for establishing criteria for individuals to become real property appraisers.

A

Appraiser Qualifications Board

322
Q

What is the mode of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)

A

93

323
Q

“The party or parties who engage, by employment or contract, an appraiser in a specific assignment” is the definition of

A

client

324
Q

The Management Section of the ETHICS RULE states, in part, “An appraiser must __________ that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment.”

A

disclose

325
Q

A client has requested that an appraiser value a property that is improved with an old dilapidated single family home, and asks the appraiser not to mention the existence of the home in the appraisal report. Which statement is TRUE regarding this situation?

  • The client has violated USPAP.
  • The appraiser must avoid mentioning this structure in the report.
  • It would be misleading if the appraiser did not disclose the existence of this structure in the report.
  • USPAP does not address this issue.
A

It would be misleading if the appraiser did not disclose the existence of this structure in the report.

326
Q

You purchased a house for $120,000, three years ago. Property values increased 3% the first year, 5%, the second year, and 7% the third year. How much is your house worth now?

A

$138,865

327
Q

Which of the below is a requirement of a valid real estate contract?

  • consideration
  • in writing and signed
  • lawful objective
  • all of the above
A

all of the above

328
Q

You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the down payment and the loan points?

A

$30,376.63

329
Q

The interest rate that banks charge when lending money to their highest rated customers is called the __________ rate.

A

prime

330
Q

“The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment” is the definition of

A

microeconomics

331
Q

Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of

A

transferable development rights

332
Q

In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.

A

Trustee

Deed of trust. Title is vested in a third party, the trustee, until the mortgage lien is satisfied.

333
Q

Reporting requirements for real property appraisers are set forth in STANDARD ___ of the Uniform Standards of Professional Appraisal Practice.

A

2

334
Q

The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT

  • Fannie Mae
  • FDIC
  • OCC
  • FRB
A

Fannie Mae

335
Q

Real estate includes all of the following EXCEPT

  • land
  • buildings
  • property rights
  • trees
A

property rights

336
Q

“A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied” is the definition of a(n) ______________ mortgage.

A

adjustable rate

337
Q

Which is NOT an economic force affecting property values?

  • wage rates
  • transportation
  • expense levels
  • Consumer Price Index
A

transportation

338
Q

You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the mean of these indications?

A

$1,070

339
Q

Which is NOT a requirement of a valid deed?

  • must be in writing
  • property adequately described
  • consideration stated
  • must be recorded
A

must be recorded

340
Q

“The rate at which vacant space in a property or group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time” is the definition of

A

absorption rate

341
Q

The real property market is generally classified as a(n) __________ market.

A

imperfect

342
Q

The appraisal standards and qualification criteria promulgated by the boards of The Appraisal Foundation achieves legal authority by adoption, citation or implementation by

A

government agencies

343
Q

In USPAP, the word “Ethics” is defined

A

nowhere

344
Q

A circle contains _______ degrees.

A

360

345
Q

Under the current qualification criteria, an applicant for Appraiser Trainee must have completed ___ creditable hours of experience.

A

0

346
Q

The primary operators in the secondary mortgage market include all of the following EXCEPT

  • Fannie Mae
  • FHA
  • Ginnie Mae
  • Freddie Mac
A

FHA

347
Q

Normally the first step in highest and best use analysis is to research the uses that are

A

legally permissible

348
Q

Twenty years ago, most appraisal reports that were sent electronically were sent using _____ technology; today, most appraisals are sent electronically using a _______ format.

A

EDI, PDF

349
Q

Which is the fullest and most complete type of estate?

  • leased fee
  • life estate
  • leasehold
  • fee simple
A

fee simple

350
Q

A client asks an appraiser to omit the client’s identity from the appraisal report. What can the appraiser do?

A

omit the client’s identity from the report but identify the client in the workfile

351
Q

The _______ maintains a national registry of state certified and licensed appraisers who are eligible to perform appraisals in federally related transactions.

A

Appraisal Subcommittee

352
Q

Which of the following is a characteristic of an effective market?

  • prices relatively low
  • supply and demand operate freely
  • buyers and sellers act rationally
  • all of the above
A

all of the above

353
Q

A homeowner fears the construction of a factory nearby will decrease the value of her property. This illustrates the principle of

A

externalities

Basic Appraisal Principles (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions