CCMA Flashcards
Study for CCMA exam
What is Market Value?
Market value is the most probabale price property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the prices is not affected by undue stimulus.
What is Nature of Value?
- Scarcity 2. Purchase Power 3. Utility 4. Desirability
What are the 5 factors of a fair market sale?
- Buyer and seller are typically motivated 2. Both parties are well informed or well advised and acting in their own best interests 3. Property was exposed to the open market for a reasonable length of time 4. Payment made in terms of dollars or under terms of financing comparable thereto. 5. The price represents normal considerations for a property sold unaffected by special/creative financing or sales concessions from anyone associated with the transaction.
What is PEGS?
PEGS is the acronym for forces affecting value.
What does the acronym PEGS stand for?
P - physical E - economic G - governmental S - social
Name the six common styles of homes?
Ranch, Cape, Colonial, Raised Ranch (bi-level), Split Level, Contemporary
Name the five roof styles?
Gable, Hip, Mansard, Gambrel, Flat
What does RCN stand for?
Replacement Cost New
What does RCN - D stand for?
Replacement Cost New minus Depreciation
What does MV = LV + (RCN-D) mean?
Market value equals Land Value plus Replacement Cost New minus Depreciation
Describe the 4 Methods of estimation costs
Quantity Survey, Unit in Place, Index (aka Factored Historical Cost), Comparative Unit or Square Foot
What are the three categories of depreciation?
Physical deterioration, functional obsolescence and economic obsolescence
In depreciation, What are the two types of physical deterioration?
Curable and Incurable
In depreciation, What are the two types of functional obsolescence?
Curable and Incurable
What are the 2 measurements of depreciation?
Overall age-life method and observed condition
What are the three categories of overall age-life method?
Effective age (overall age-life method), Remaining Economic Life and Total Economic Life
What does the acronym REL stand for?
Remaining Economic Life
What does the acronym TEL stand for?
Total Economic Life
What are non-usable conveyance codes?
Codes for sales that are not-arms length, unimpacted fair market sales
There are 30 non-usable codes for conveyances. What are they?
Family, Love & Affection, Inter Corporation, Correcting Deed/Convenience, Deed Date, Portion of Property, Change in Property, Part Interest, Tax Sale, A Will, Court Order, Non-Buildable Lot, Bankruptcy, Foreclosure, Government Agency, Charitable Group, Two Towns, In Lieu of Foreclosure, Easement, Cemetery, Personal Property Exchange, Money and Personal Property, Zoning, Plottage, Other Reasons, Rehabilitation Deferred, Crumbling Foundation Assessment Reduction, Use Assessment, No Consideration, Auction
Under Non-Usable Codes: Define Family
Sale between members of the same family
Under Non-Usable Codes: Define Love and Affection
Sale in which “love and affection” are stated to be part of the consideration
Under Non-Usable Codes: Define Inter Corporation
An intra corporation sale; for example, sales between a corporation and its stockholder, subsidiary, affiliate or another corporation whose stock is in the ownership
Under Non-Usable Codes: Define Correcting Deed/Convenience
Transfers of convenience; for example, sales for the sole purpose of correcting defecs in title (a correcting deed), for the purpose of creating survivorship, etc.
