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V_Basic Appraisal Principles > Chapter 5 - Basic Appraisal Concepts > Flashcards

Chapter 5 - Basic Appraisal Concepts Flashcards

1
Q

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

An appraisal is defined as: The act or process of developing an _________ of value.

A

opinion

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2
Q

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

A

Real Estate

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3
Q

An appraisal is best described as

  • an opinion of value
  • the estimated cost to replace the property
  • a guarantee of the true worth of the property
  • an estimate of value
A

An opinion of value

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4
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?

  • unique location
  • immobility
  • durability
  • finite supply
A

durability

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5
Q

Which of these items is LEAST likely to be considered part of the real estate?

  • rose bushes
  • central air conditioner
  • chandelier
  • window air conditioner
A

Window Air Conditioner

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6
Q

“The interests, benefits, and rights inherent in the ownership of real estate” is the definition of

  • real estate
  • real property
A

Real Property

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7
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

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8
Q

The Fifth Amendment to the U.S. Constitution guarantees payment of ________ for the taking of private property.

  • just compensation
  • top dollar
  • an equally desirable substitute property
  • time and money
A

Just compensation

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9
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

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10
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

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11
Q

Private restrictions on property rights include all of the following EXCEPT

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

Escheat

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12
Q

Which of the following would likely NOT be considered personal property?

  • area rug
  • washing machine
  • wall to wall carpet
  • drapes
A

Wall to wall carpet

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13
Q

The right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs is call ______?

A

Escheat

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14
Q

Which is NOT a characteristic of land?

  • durability
  • mobility
  • unique location
  • finite supply
A

Mobility

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15
Q

“The interests, benefits, and rights, inherent in the ownership of real estate” is the definition of

A

Real Property

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16
Q

Trade fixtures are only found in ___________ property.

A

Rented

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17
Q

Public limitations on private property rights include all of the following EXCEPT

  • CC&Rs
  • taxation
  • eminent domain
  • escheat
A

CC&R’s

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18
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

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19
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

20
Q

__________ rights are considered to be vertical rights.

A

Air

21
Q

Which is NOT a public restriction of private property rights?

  • taxation
  • easement
  • police power
  • escheat
A

Easement

22
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

23
Q

Another name for trade fixture is

A

Chattel Fixture

24
Q

The right of government to take private property for public use upon the payment of just compensation is called

A

Eminent Domain

25
Q

Police power would include all of the following EXCEPT

  • building codes
  • zoning
  • taxation
  • fire codes
A

Taxation

26
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

27
Q

The public restriction on property rights that allows the government to place a lien on a property is

A

Taxation

28
Q

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

  • real estate
  • real property
A

Real Estate

29
Q

The right of government to take private property for public use upon the payment of just compensation is called

A

Eminent Domain

30
Q

Public limitations on private property rights include all of the following EXCEPT

  • CC&Rs
  • taxation
  • eminent domain
  • escheat
A

CC&R’s

31
Q

“a valuation service that is provided by an appraiser as a consequence of an agreement with a client.” is a definition of __________?

A

Appraisal

32
Q

The process of eminent domain is administered through

  • escheat
  • condemnation
  • just compensation
  • police power
A

Condemnation

33
Q

“Land and all things that are a natural part of the land, e.g., trees and minerals, as well as things that are attached to the land by people, e.g., buildings and site improvements. All permanent building attachments such as plumbing, heating and cooling systems; electrical wiring; and built-in items like elevators or lifts “ is a definition of?

A

Real Estate

34
Q

the physical thing, tangible thing that we can see and touch it is:

  • real estate
  • real property
A

real estate

35
Q

Name 4 important characteristics of land:

A
  • Unique location
  • Immobility
  • Durability
  • Finite Supply
36
Q

The rights to the use and profits of the underground portion of a designated property; usually refers to the right to extract minerals or the right to construct and maintain tunnels, subways, subcellars, pipelines, sewers - is a definition of

A

Subsurface Rights

37
Q

“The right to undisturbed use and control of designated air space above a specific land area within stated elevations.” is a definition of?

A

Air Rights

Air rights may be acquired to construct a building above the land or building of another or to protect the light and air of an existing or proposed structure on an adjoining lot.

38
Q

What are Transferable development rights?

A

A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be conveyed to landowners in another location or leased for a period of years to then revert back to the original owner

39
Q

“An article that was once personal property but has since been installed or attached to the land or building in a rather permanent manner so that it is regarded in law as part of the real estate.” is a definition of?

A

Fixture

(don’t mistake with Trade Fixture!)

40
Q

What is Personal Property?

A

Personal property is generally something that is portable. We can pick it up (or load it on the back of a truck or trailer) and take it with us.

Any tangible or intangible article that is subject to ownership and not classified as real property, including identifiable tangible objects that are considered by the general public as being “personal” such as furnishings, artwork, antiques, gems, and jewelry, collectibles, machinery and equipment; and intangible property that is created and stored electronically such as plans for installation art, choreography emails, or designs for digital tokens. (USPAP, 2020-2021 ed.)

41
Q

The appraisal of personal property is covered in STANDARDS ? and ? of USPAP.

A

7 & 8

42
Q

What are Trade Fixtures?

A

Articles placed in or attached to rented buildings by a tenant to help carry out the trade or business of the tenant are generally regarded as trade fixtures. For example, a tenant’s shelves used to display merchandise are trade fixtures and retain the character of personal property, as opposed to all other fixtures that were but are no longer personal property when they are attached to and become part of the real estate. Despite the consensus on the concept of trade fixtures in general, applicable law and custom govern when a specific item is a trade fixture in a particular assignment. Also called chattel fixture.

43
Q

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

A

Real property

44
Q

Real property is what we appraise. When you appraise real property, it is vital that you research and understand what particular property _______ (i.e., the property interest) you are appraising. Then you need to identify the property interest being appraised in your appraisal report.

A

rights

45
Q

The bundle of ________ includes the _________ to:

  • Use the property
  • Sell it
  • Lease it
  • Give it away
  • Transfer it by will or trust
  • Choose not to do anything
A

rights

V_Basic Appraisal Principles (19 decks)

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