Chapter 5 - Basic Appraisal Concepts Flashcards
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.
opinion
“An identified parcel or tract of land, including improvements, if any” is the definition of
Real Estate
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
An opinion of value
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
durability
Which of these items is LEAST likely to be considered part of the real estate?
- rose bushes
- central air conditioner
- chandelier
- window air conditioner
Window Air Conditioner
“The interests, benefits, and rights inherent in the ownership of real estate” is the definition of
- real estate
- real property
Real Property
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.
True
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
Just compensation
True or False? When people buy and sell land and buildings in the marketplace, they are actually buying and selling real property rights.
True
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.
Mechanic’s lien
Private restrictions on property rights include all of the following EXCEPT
- mortgages
- escheat
- mechanic’s liens
- deed restrictions
Escheat
Which of the following would likely NOT be considered personal property?
- area rug
- washing machine
- wall to wall carpet
- drapes
Wall to wall carpet
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 ______?
Escheat
Which is NOT a characteristic of land?
- durability
- mobility
- unique location
- finite supply
Mobility
“The interests, benefits, and rights, inherent in the ownership of real estate” is the definition of
Real Property
Trade fixtures are only found in ___________ property.
Rented
Public limitations on private property rights include all of the following EXCEPT
- CC&Rs
- taxation
- eminent domain
- escheat
CC&R’s
“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
Mortgage
“The right of government, through which property is regulated, to protect public safety, health, morals, and general welfare” is the definition of
Police Power
__________ rights are considered to be vertical rights.
Air
Which is NOT a public restriction of private property rights?
- taxation
- easement
- police power
- escheat
Easement
“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.
Transferable Development
Another name for trade fixture is
Chattel Fixture
The right of government to take private property for public use upon the payment of just compensation is called
Eminent Domain