Basic Appraisal Principles All Chapters Flashcards
The basic requirements for state, licensed and state certified appraiser’s had their Genesis in Title _______ of FIRREA
XI
The number of required classroom education hours for certified residential appraisers under the 2018 AQB criteria is ____ hours
200
Which is a true statement regarding appraiser examinations?
They are the same in every state, with few exceptions
The current AQB real property appraiser qualification criteria went into affect:
May 1, 2018
An appraiser is “one who is expected to perform valuation services, competently, and in a manner that is independent, ______ and ______
Impartial, objective
The document transmitted to the client upon completion of an appraisal assignment is the:
Appraisal report
Which of the following situations would not normally require an appraisal?
Life insurance
Which of the following situations would not normally require an appraisal?
Title insurance
If you have specific questions about appraisal certification or licensure requirements in your state, you should:
Contact the appraiser licensing and certification agency in your state
The continuing education requirement in the 2018 AQB criteria (compared to the previous criteria):
Remain unchanged
The fair housing act of 1968, as amended, does not prohibit discrimination based on
Age
Which is considered to be “other communications” provided by the ASB
All of the above: advisory opinions, index, Q&A’s
ECOA Prohibits creditors from discriminating against credit applicants on the basis of all of these categories, except:
Employment status
The fair housing act of 1968 prohibits discrimination in all of these, except for:
Commercial leasing
The uniform standards of professional appraisal practice (USPAP) was copyrighted by:
The Appraisal Foundation
The professional society that specializes in appraising personal property is the
American Society of Appraisers
ECOA applies to all the following types of loans EXCEPT
Vacant land
The AQB and the ASB were created for the express purpose of promoting and maintaining a high level of:
Public trust
Which of the agencies or institutions listed below are NOT directly involved in fair lending?
VA
The savings and loan crisis happened in the
Late 1980s
An appraiser find that the pending sale price of the subject residential property is not supported by market data. To avoid causing a problem for the buyer and the seller, the appraisal reconciles the value conclusion to meet the sale price anyway. Which statement is true regarding this situation?
The appraiser has violated his ethical obligations by doing this.
Under USPAP, and appraiser would be permitted to base the fee for a residential mortgage lending appraisal on:
The gross living area (square footage) of the dwelling
True or false? Websters dictionary, defines ethics as relating to the principals, established by the world’s most common religions.
False
USPAPs addresses an appraisers ethical obligations in
The ETHICS RULE
Is an appraiser permitted to base his or her appraisal fee on the owners estimate of value of the subject property?
Yes, this is permissible
Websters dictionary, defines ethics as relating to:
What is good or bad
A common language called _______ Was developed and standardized so that most software companies produced a common language that could be read by most lending clients
XML
What is the name of the technology that allows the transmission of information from one computer application to another?
EDI
Today, most appraisals are delivered to the client by
Sharing through a comprehensive electronic system
In a GIS mapping system, ________ of data can be turned on and off for viewing or printing
Layers
The subject property had a prior transfer on October 15, 2012. When reporting that date of this prior sell in a UAD complaint appraisal report, what would be the correct way the state must be formatted.
10/15/2012
What would be the correct way to format the date March 15, 2013 in a UAD -complaint appraisal report?
03/15/2013
The public restriction on property rights that allows the government to place a lien on a property is:
Taxation
“The right to construct and maintain tunnels, subways, subcellars, pipelines, sewer, etc.” is the the definition _______
rights
Subsurface
“A development right can 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.
Transferable development
Which of the following would most likely be considered personal property?
Window air conditioner
An article that was once personal property, but has since been installed or attached to the land or building in a rather permanent manner is a(an)
Fixture
____ rights are considered to be vertical rights
Air
The right of government to take private property for public use upon the payment of just compensation is called
Eminent domain
“The interest, benefits, and rights, inherent in the ownership of Real Estate” is the definition of
Real property
Which would NOT be a characteristic of a good appraisal?
Unsupported
Which is NOT considered to be Real Estate?
Property rights
In the rectangular survey system, a section contains _____ square mile(s)
1
Which system of legal description is found primarily in the Northeast?
Metes and bounds
A rod contains ______ feet
16.5
A rancher owns 8 full sections and 3 half sections. He sells off 5 quarter sections. How many acres are left?
5,280
The earliest system of legal descriptions is the _______ system.
Metes and bounds
A section contains ______ acres
640
Which system of legal descriptions uses townships?
Rectangular survey
The most desirable form of timesharing is called ______timesharing.
Fee
Which type of ownership can only be held by a married couple?
Tenancy by the entirety
“The holding of property by any form of title” is the definition of
Tenancy
Which ownership includes the right of survivorship?
Joint tenancy and tenancy by the entirety
Which is NOT a partial estate?
Fee simple estate
“And Estate held by two or more persons, each of whom has an undivided interest” is the definition of
Tenancy in common
A leasehold interest may have value when
The contract rent is less than market rent
“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
Fee simple
A facade easement is a type of ________
easement.
Historic preservation
An easement for a railroad or pipeline would be an example of a(n)
Easement in gross
A law changed after the contract was arranged, but before the full performance of the contract. The law prohibits the transaction from taking place. This would be an example of
Impossibility
“A lease that provides for specified changes in rent at one or more points during the lease term, e.g., step-up and step-down leases, or leases with a set percentage adjustment” is a ________ lease.
Graduated rental
The Uniform Commercial Code covers the sale of goods over $________
500
“A written, legal instrument that conveys an estate or interest in real property when is it is executed and delivered” is the definition of a
Deed
“A manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer” is the definition of
Acceptance
A deed of trust is similar to a
Mortgage
“A legally binding agreement between two or more persons that represents their promise to do or not to do a particular thing” is the definition of a(n)
Contract
“A writ (order) issued by a court ordering someone to do something or prohibiting some act after a court hearing” is the definition of
Injunction
“To finish, complete or perform as required, as in fulfilling one’s obligations under a contract or a court order” is the definition of
Execute
The seller of a property is called the
Grantor
Breach of contract is also known as
Default
All of the following are required ingredients of a valid contract EXCEPT
Legal description
“A form of conveyance in which any interest the grantor possesses in the property described in the deed is conveyed to the grantee without any warranty of title” is the definition of a ______ deed.
Quitclaim
The weakest form of deed is the ______ deed
Quitclaim
“Failing to perform any terms of a contract, written or oral, without a legitimate legal excuse” is the definition of
Breech of contract
The real property market is generally classified as a(n) ______ market.
Imperfect
“A market characterized by numerous transactions.” is the definition of a(n) ______ market.
Active
“The area associated with a subject property that contains its direct competition” is the definition of a
Market area
All the following are characteristics of a good market, except
Small number of buyers and sellers.
Good market: prices are stable, buyers and sellers act rationally, little regulation.
“A group of complementary land uses; a congruence grouping of inhabitants, buildings, or business enterprises” is the definition of
Neighborhood
Which is usually larger?
Market area
(Bigger than neighborhood, district, village)
“A market in which product differentiation exists, there is a lack of important product or market information, and some of the producers, and/or consumers are significant enough to affect the price and quantity of goods by their actions, alone” is the definition of a(n) _______ market.
Imperfect
“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial. Industrial, agricultural” is the definition of
District
The FDIC insures deposits up to $_______
250,000
Which is NOT a short-term money instrument?
5 year balloon mortgage
Amenities such as a nice view are generally more important to
Homeowners
The rate that banks employ when lending money to their highest rated customers is called the ______ rate.
Prime
The capital market deals in all of the following EXCEPT
Real estate
Which investment alternative has the least liquidy?
Real estate
How do investors typically compensate for higher risk in an investment?
They demand a higher rate of return
“ A tangible or intangible benefit of real property that enhances its attractiveness, or increases the satisfaction of the user” is the definition of
Amenity
Which of the following is an insured loan?
FHA
(Not insured: VA, personal, ARM)
Which of the following is a guaranteed loan?
VA
Which of the following entities guarantees mortgage loans?
VA
“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
The primary participants in the secondary mortgage market are:
Fannie Mae, Freddie Mac, and Ginnie Mae
Which type of loans are assumable without the permission of the lender?
Very few loans are assumable without lender approval
A property has a first mortgage of $120,000, a second mortgage of $30,000, And a third mortgage of $15,000. It is foreclosed and sold for $155,000. The holder of the third mortgage gets $______ In the holder of the second mortgage receives $______
$5,000, $30,000
Another name for an installment sale contract is a(n)
Contract for deed
A point is _____ percent of the amount of the _______.
1, mortgage loan
What kind of mortgage is not fully amortized at maturity, and thus requires a lump sum payment of the outstanding balance?
Balloon
A type of mortgage design for retirees and other fixed income homeowners who owe little or nothing on their homes and want to top their equity is called a _____ mortgage.
Reverse annuity
Mortgage assumptions are
Attractive when rates are rising
The FHA mortgage insurance program is funded by
Mortgage insurance premiums paid by borrowers
“Mortgages that are neither insured nor guaranteed by an agency of the government, although they may be privately insured” are called ________ mortgages.
Conventional
A mortgage that has priority over all other mortgage liens on a property is a
First mortgage
The government entity that overseas the conservatorship of Fannie Mae and Freddie Mac is
Federal Housing Finance Agency (FHFA)
Another name for an installment sale contract is a(n)
Contract for deed
“The ability of a product to satisfy a human want, need or desire” is the definition of
Utility
The most prominent federal agency in the environmental arena is
EPA
Which federal agency is responsible for reviewing coastal development, and water projects that may alter or destroy habitat?
NOAA
Total construction costs are a combination of __________ costs.
Land, materials, and labor
“The present or anticipated undersupply of an item relative to the demand for it…” is the definition of
Scarcity
“The ability of a property or building to be useful and to perform the function for which it intended, according to current market tastes and standards; the efficiency of a buildings use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms“ is the definition of
Functional utility
Which of the following is NOT a governmental force?
Family formations
