Ch 1 Quiz

Question 1

Who is responsible for identifying the intended use of an appraisal?

Answer 1

the appraiser

Question 2

Each appraisal report must contain two dates, the ____________ and the ______________.

Answer 2

effective date of the appraisal, date of the report

Question 3

The objective for an assignment is its

Answer 3

purpose

Question 4

The intended user of an appraisal is the ________ and any other user, as identified by _________.

Answer 4

client
name or type.

The intended user is the client (and any other named) user). They can be identified by name or by type (such as a secondary market participant or a court of law).

Question 5

An appraiser observes that an underground tank is leaking. An appraisal could be done of the property in its “as is” contaminated condition or could be appraised under the _______________ that the property is free of contamination.

Answer 5

hypothetical condition

Question 6

What is the last step in the valuation process?

Answer 6

Report the final opinion of value

Question 7

The SCOPE OF WORK RULE says that “the appraiser must be prepared to demonstrate that the scope of work is sufficient to produce _________________”

Answer 7

credible assignments results

Question 8

Scope of work applies to

Answer 8

Both appraisals and appraisal review assignments

Question 9

An appraiser must be prepared to demonstrate that the scope of work is sufficient to produce

Answer 9

credible assignments results

Question 10

The valuation process is a systematic procedure employed to provide the answer to a(n) ________ question about the value of __________.

Answer 10

client’s, real property

Question 11

True or False: A workfile must be in existence prior to the issuance of a written or oral report.

Answer 11

TRUE

Question 12

True or False: All three approaches to value must be used in every real property appraisal.

Answer 12

FALSE

Question 13

What is the final step in the valuation process?

Answer 13

report the final opinion of value

Question 14

A step-by-step procedure that can be applied to any type of appraisal assignment is

Answer 14

the valuation process

Question 15

An appraisal report must contain sufficient information to allow ________ to understand the scope of work.

Answer 15

intended users

Question 16

An appraiser encounters a small crack in a foundation slab on a house he is appraising. He discloses the crack in the appraisal report and states that he is not a structural engineer and assumes the crack is not structural in nature and does not require a repair. This is an example of the use of a(n) ______________.

Answer 16

Extraordinary assumption. There is no known problem, but the appraiser is protecting him or her self in case there really is a problem.

Question 17

True or False: HUD/FHA requires an appraiser to verify all comparable sales data used in an appraisal.

Answer 17

TRUE

Question 18

Which is NOT an appropriate source for a legal description?

Answer 18

postal address

Question 19

Which appraisal term is defined as: “A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis”?

Answer 19

Hypothetical condition

Question 20

An appraiser encounters an underground storage tank. If there is no evidence of any observable leaks, the appraiser could indicate a value opinion based on the ______________ that the tank is indeed not leaking.

Answer 20

extraordinary assumption

Question 21

True or False: An appraiser’s client must always directly engage the appraiser.

Answer 21

FALSE

Question 22

The effective date of value can be

Answer 22

a present, past, or future date

Question 23

“An assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser’s opinions or conclusions” is the definition of

Answer 23

extraordinary assumption.

Question 24

What is the first step in the valuation process?

Answer 24

define the problem

(Der Super Vater hold land (und) 3 Rustige Russen)

Question 25

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

Answer 25

client

Question 26

“Documentation necessary to support an appraiser’s analyses, opinions, and conclusions” is the appraiser’s

Answer 26

workfile

Question 27

Which would NOT be a sub­-step in defining the problem?

Answer 27

highest and best use

Question 28

What appraisal term is defined as “The type of data and the extent of research and analyses”?

Answer 28

scope of work

Question 29

An appraiser must comply with the SCOPE OF WORK RULE when completing:

Answer 29

an appraisal assignment

Question 30

In highest and best use analysis, which criterion is applied LAST?

Answer 30

maximally productive. Generally speaking, the criterion “legally permissible” is applied first, and “maximally productive” is applied last.

Question 31

True or False: Real property appraisal reports may be written or oral.

Answer 31

TRUE

Question 32

Where would an appraiser keep the documentation that supports her appraised value?

Answer 32

Workfile

Question 33

An appraiser produces an appraisal report that includes the effective date of the value. What other date does the appraiser need to include in the appraisal report?

Answer 33

Date of report

Question 34

True or False: The effective date of the valuation must be the date on which the appraiser inspected the subject property.

Answer 34

FALSE. In many cases, the effective date is the date the appraiser inspects the subject property. But that is not always the case. The effective date can be any date, whether past, present, or future.

Question 35

“An interest or interests in real estate” is the definition of

Answer 35

real property

Question 36

An appraiser is valuing a property under a condition that is known by the appraiser to be false. The appraiser is employing a(n) ____________ in this appraisal.

Answer 36

hypothetical condition

Question 37

True or False: There is one universal definition of market value used in real property appraisal.

Answer 37

FALSE

Question 38

“The type and extent of research and analyses in an appraisal or appraisal review assignment” is the definition of

Answer 38

scope of work