Chapter 9: Expropriation and Appraisal Review Flashcards
Arnold lives in a four-bedroom home that has been designated for expropriation. He has asked for you advice since the home has a magnificent waterfront view and the compensation offered by the expropriating authorities is not sufficient to allow Arnold to relocate to a similar location. Which of the following would you suggest to him as the most appropriate recourse under the Expropriation Act?
1.) Injurious affection
2.) Disturbance damages
3.) Gratuitous benefit
4.) Equivalent reinstatement
4.) Equivalent reinstatements
(home for a home)
Terran owns a home located near a busy thoroughfare that is soon to be designated a major transit corridor. Terran will not have to give up any of his land, but he will lose some of his privacy, which will in turn lower the value of his property. Which of the following can Terran rely on to obtain compensation?
1.) Equivalent reinstatement
2.) Disturbance damages
3.) Injurious affection
4.) General benefits
3.) Injurious affection
Haley owns a rental duplex. It is located on a busy street, but the shrubs and mature trees on the boulevard provide a noise and privacy screen that have made it easier for her to rent out her unit. The municipality is now pursuing a rode widening with plans to remove the mature trees, but has assured the residents that these will be replaced upon completion of the project. The project is anticipated to take 3 years. Her tenants have requested a reduction in rent. What is Haley’s BEST recourse for compensation?
1.) Injurious affection for betterment
2.) Larger parcel
3.) Disturbance damages
4.) Equivalent reinstatement
3.) Disturbance damages
A residential property owner has a small sliver of land near the rear of his property expropriated by the government, but has no evidence of a reduction in the property’s market value. According to this lessen, can the owner still obtain compensation?
1.) Yes
2.) No
3.) Only if less than 100 sq m was expropriated
4.) Only is more than 100 sq m was expropriated
1.) Yes
Which of the following statements regarding expropriation valuation is TRUE?
1.) The appraiser must provide estimates of value for all “heads of claim” related to an expropriation
2.) The principal function for the appraiser is to estimate market value as defined in the federal Expropriation Act
3.) The effective date of the appraisal is usually established by the expropriating authority
4.) The guidelines provided by the expropriating authority take priority over the applicable legislation when preparing an appraisal for that authority.
2.) The principal function for the appraiser is to estimate market value as defined in the federal Expropriation Act
Cammy owns two adjoining parcels of land. She plans to develop a residential project with a communal gym and entertainment facility, as well as extra parking for the resident’s guests. However, she finds out that one of the parcels will be expropriated by the City. She anticipates this will make the project infeasible. To measure the loss using the “larger parcel” approach, three conditions must be present. Which of the following is NOT one of these conditions?
1.) Unity of ownership
2.) Continguity
3.) Unity of zoning
4.) Unity of use
3.) Unity of zoning
Which of the following is/are included as an offsetting factor in the amount of compensation payable in expropriation legislature?
1.) Bobby and his family live on a property that was involved in a project that the expropriating authority has since abandoned
2.) The city moved to expropriate 20 acres for a recreational facility, but with changing project scope, only ended up expropriating 5 acres.
3.) The expropriating authority has taken a strip from the back portion of a ranch for a highway widening, but built a fence along the strip for the rancher.
4.) All of the above
4.) All of the above
If negotiations between an owner and the expropriating authority break down, which of the following is an option to determine compensation through a process that is public?
1.) Hearings
2.) Settlements
3.) Arbitration
3.) None of the above
1.) Hearings
The “effect of the scheme” concept requires that the appraiser do which of the following?
1.) Recognize that knowledge of the scheme may skew sales evidence, so the appraiser must ignore the effects of the scheme in the analysis of highest and best use after the taking
2.) Recognize the effects on market value resulting from the scheme that gave rise to the expropriation
3.) Disregard any effects on the market value resulting from the scheme that gave rise to the expropriation
4.) Account for any anticipated or actual use by the Crown of the land at any time after the expropriation
3.) Disregard any effects on the market value resulting from the scheme that gave rise to the expropriation
If Chris has been hired as a review appraiser for a litigation, which of the following is NOT an appropriate action for Chris?
1.) Assisting in preparing the appraiser as expert witness
2.) Advocating the conclusion of value in the appraisal report
3.) Advising on cross examination or rebuttal arguments
4.)Preparing courtroom exhibits
2.) Advocating the conclusion of value in the appraisal report
Which of the following represents the key distinction between “appraisal” and “appraisal review”?
1.) There is no distinction - both are applications of the appraisal process
2.) An appraisal estimates market value via the appraisal process, while an appraisal review always recalculates the estimate of market value
3.) An appraisal estimates market value via the appraisal process, while an appraisal review supports the market value estimate
4.) An appraisal estimates market value via the appraisal process, while an appraisal review evaluates the strengths and weaknesses of the application of the appraisal process in the appraisal report.
4.) An appraisal estimates market value via the appraisal process, while an appraisal review evaluates the strengths and weaknesses of the application of the appraisal process in the appraisal report.
Which of the following statements regarding appraisal review forms is FALSE?
1.) The appraisal review form is a guide to assist the reviewer
2.) The appraisal review form should document the strengths and weaknesses in the appraisal report.
3.) The appraisal review form is a mandatory tool in reviewing an appraisal report
4.) The appraisal review form is primarily used in a supporting role to help document the steps undertaken by the reviewer
3.) FALSE - The appraisal review form is a mandatory tool in reviewing an appraisal report
Which of the following is NOT a primary function of an appraisal review?
1.) To allow the reviewer to negotiate a property acquisition
2.) To ensure due diligence
3.) To provide risk mitigation
4.) To provide litigation support
1.) To allow the reviewer to negotiate a property acquisition
According to CUSPAP, when completing an appraisal review, members must comply with which of the following Review Standards rules?
1.) Exclude the reasons for any disagreement or agreement with the report being reviewed
2.) Assign an additional appraiser to approve the conclusions of the of the appraisal review upon completion
3.) Recalculate the estimate of market value
4.) Provide an opinion as to the appropriateness and proper application of the methods and techniques used
4.) Provide an opinion as to the appropriateness and proper application of the methods and techniques used
A plot plan can highlight potentially significant errors in an appraisal report when it does which of the following?
1.) Excludes the exterior dimensions of the building on the lot
2.) Excludes a north direction arrow
3.) Includes building setback distances that are less than the minimum zoning criteria, but are not addressed in the land use conformity analysis section of the report
4.) Include both imperial and metric measurements
3.) Includes building setback distances that are less than the minimum zoning criteria, but are not addressed in the land use conformity analysis section of the report
