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My Focused Goals > Compu Cram R. Estate > Flashcards

Compu Cram R. Estate Flashcards

1
Q

👁property ownership

Which would serve as evidence of a shareholders exclusive right of possession of property owned by the shareholders corporation?

  • net lease
  • gross lease
  • proprietary lease
  • deed
A

⚡️Proprietary lease

“Shareholders = proprietary lease”

  • Net + gross = leasehold
  • Deed = convey legal title
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2
Q

👁property ownership

A buyer is considering purchasing an interest in a time share. The buyer is offered the right to buy stock in a corporation that owns the property; he will receive a lease of its units for his time share interest.

This is a ____________ time share.

  • cooperative
  • land contract
  • condominium
  • condemnation
A

⚡️Cooperative

“Cooperative is obtained through = proprietary lease”

  • Condo = freehold
  • Land contract = installment agreement

-Condemnation = not relevant to time share
“Theory” would be government taking private property for specified time.

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3
Q

👁property ownership

A telephone company has a 20ft wide easement across farmer jones land on which telephone poles are installed and through which telephone wires extend. When the telephone company goes cellular and removes the poles and wires, the easement terminates due to

  • abandonment
  • merger
  • release
  • failure of purpose
A

⚡️failure of purpose

“The purpose established no longer exists”

  • Release = beneficiary terminates easement by document relinquishing legal right
  • Merger = terminate when dominant and servient interests are united under one ownership
  • Abandonment = when clear expression of beneficiary intent to abandon
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4
Q

👁property ownership

To find out whether there is an (encroachment) on a property, a person should purchase

  • a survey
  • mortgage insurance
  • title insurance
  • homeowners insurance
A

⚡️a survey

“Survey would show any physical encroachment like tree hanging over”

  • Title ownership = insures ownership in name of purchaser
  • Homeowner insurance = protects theft & hazardous loss
  • Mortgage insurance = invalid
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5
Q

👁property ownership

Tom and sally are NOT married, but own a rental property together. Because they also have a right of survivorship, they most likely own the property in

  • tenancy by the entireties
  • tenancy in severalty
  • joint tenancy
  • tenancy in common
A

⚡️joint tenancy

“Joint is a form of co-ownership in which they both have equal undivided interest and right of survivorship”

  • entireties = marriage period.
  • common and severalty don’t have right of survivorship
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6
Q

👁property ownership

Which statement regarding the common area of a condominium project is true?

  • the common area in a condominium is owned by the government and does not require insurance coverage
  • the owners insure only their own individual units, and the common areas are left uninsured
  • each owner maintains an individual policy over the common areas
  • the homeowners association usually has liability insurance coverage for the common area
A

⚡️each owner maintains an individual policy over the common areas

“Common area usually has liability insurance paid by the condominium homeowners association. The area is owned equally by the condominium owners percentage to their ownership rights”

-not owned by government

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7
Q

👁property ownership

Scott buys a parcel of vacant land, builds a house, and begins to enjoy possession of the property. Scott later discovers that the parcel of land he believes he had legal title to had been transferred in a previous sale of a larger parcel of land. Which law requires the rightful owner of the land to compensate the rightful owner of the land for the value of the unimproved land?

  • doctrine of constructive annexation
  • doctrine of part performance
  • doctrine of emblements
  • occupying claimant law
A

⚡️occupant claimant law

“Occupying claimant would require rightful owner of the land to compensate Scott for the house he built, or for Scott to compensate rightful owner of land for value of unimproved land

  • doc. Of emblements allow tenant farmer to re-enter the land and harvest crops after tenancy ends
  • doc. Of part performance allows court to enforce oral contract
  • doc. Of annexation is what makes a built-in dish washer a fixture
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8
Q

👁property ownership

When an interest in real property is a remainder interest,

  • title goes on to someone at the end of a life estate
  • a grantor is conveying legal title to a grantee
  • the life tenant gets legal title
  • a grantor gets title back at the end of a life estate
A

⚡️title goes to someone at the end of a life estate

“Life estate = 2 types of future interest”

1) if title goes back where it came from, the interest is reversion
2) title goes to someone never held; it’s a remainder

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9
Q

👁property ownership

A grantor conveyed a vacant one-acre tract of land to a grantee. The grantee receives

-43,560 sq ft.

A

⚡️43,560 sq ft.

” 1 acre = 43,560 sq ft.”

  • 640 acres in a section of land
  • 5,280 linear feet in a mile
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10
Q

👁property ownership

When a woman has interest in land that will continue as long as she lives, she has a(n)

  • fee simple
  • easement
  • estate for years
  • life estate
A

⚡️life estate

“don’t confuse life estate with dower of percentage from deceased spouse”

  • fee simple is outright ownership
  • easement is right to use another persons real property for purpose
  • estate for years is lease hold with specific termination date
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11
Q

👁property ownership

ABC remodeling inc. buys a new warehouse for its trucks and excess building materials. How will it take title?

  • tenancy in severalty
  • tenancy in common
  • tenancy by the entireties
  • joint tenancy
A

⚡️tenancy in severalty

“ABC inc. is the sole owner. There is no co-ownership.

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12
Q

👁property ownership

A deed used to transfer title states the conveyance will remain in effect “so long as the property is NOT used for the sale of alcoholic beverages” the buyer would receive which kind of estate?

  • fee simple defeasible
  • fee tail
  • reversionary
  • fee simple absolute
A

⚡️fee simple defeasible

“Defeasible estate could be defeated if the deed restrictions are not followed”

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13
Q

👁property ownership

Sally wishes to guarantee that her grandchildren receive her home and farm after her son dies. She should then

  • put the property in the joint tenancy with herself and the grandchildren
  • devise the property directly to the grandchildren
  • make the children tenants in common with their father
  • leave her son a life estate, naming the grandchildren as a remainder interest
A

⚡️leave her son a life estate, naming the grandchildren as a remainder interest

“Naming the grandchildren as remainder interest would allow the son to own and use the property during his lifetime, while guaranteeing the interest will shift to grandchildren after his death”

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14
Q

👁property ownership

The highest and best form of ownership in real property is called

  • fee tail
  • life estate
  • fee simple absolute
  • fee simple defeasible
A

⚡️Few simple absolute

“No conditions on title”

  • fee simple defeasible can be undone if condition violated
  • life estate is an interest that lasts as long as a specified persons lives
  • fee tail (fee by entrails) freehold that must be owned by family member
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15
Q

👁property ownership

A system of ownership and fee simple title to designated areas of air space with a percentage of ownership of common elements in the property is termed a

  • chattel
  • cooperative
  • condemnation
  • condominium
A

⚡️condominium

“Condo is actual fee simple title to designated areas of air, plus common % of ownership of common elements in common area.

  • chattel = personal property
  • condemnation = government to take private property
  • coop ownership is the ownership of stock in a company with occupancy rights prescribed under a lease.
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16
Q

👁property ownership

Fixtures and showcases attached to property in a store that occupies rented space are considered

  • all of answers listed
  • trade fixtures
  • personal property
  • chattels
A

⚡️all of answers listed

“it’s all personal property”

  • trade fix can be removed = (PP)
  • chattel = (PP)
  • personal property = (PP) property not real
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17
Q

👁property ownership

For a buyer to be certain that the property has no encroachments, she should obtain a

  • owner fee policy of the title insurance
  • survey
  • abstract of title
  • certificate of no defense
A

⚡️survey

“Survey would show physical trespass on property by building or structure”

  • cert of no defense is document used my mortgagee to state outstanding balance due on mortgage which if not mortgagor does not object, will stand correct amount.
  • title insurance is an indemnity contract that insures title is marketable
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18
Q

👁property ownership

Wayne grants Brent the permission to use Wayne’s property to fish on one hot summer day. This is referred to as a(n)

  • license
  • encroachment
  • encumbrance
  • easement
A

⚡️license

“Permission to use land of another is a LICENSE which is revocable by grantor anytime”

  • encumbrance = interest in land that affects value. outstanding loans on mortgage, unpaid taxes
  • encroachment is trespass by object building or structure over property line
  • encumbrance is burden on property usually runs with land
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19
Q

👁property ownership

An inquiry notice is

  • matter of public record
  • what a person can actually see
  • what the real estate broker says
  • when circumstances exist that should be investigated
A

⚡️when circumstances exist that should be investigated

“Inquiry notice when circumstances should alert person to a problem for investigation.

  • actual notice = what person sees or is told
  • constructive notice = matter of public record
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20
Q

👁property ownership

An owner of real estate sold the same parcel of land to two different buyers at the same time. When both buyers meet at the property they discover that they both have recorded deeds for the property. Which type of lawsuit will they file to determine who has title?

  • quiet title action
  • eviction lawsuit
  • civil rights lawsuit
  • action to recover title
A

⚡️quiet title action

“Lawsuit to determine who has title”

  • action to recover title may occur if condition in a deed is violated
  • civil rights lawsuit may occur in the event of discrimination in the sale or rental.
  • eviction lawsuit = filed by landlord to evict tenant
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21
Q

👁property ownership

The term “APPURTENANCE”

  • refers to the rights a tenants owns in the landlords property
  • refers to rights that last only for a certain period of time
  • means “runs with the land”
  • is best exemplified by an easement in gross
A

⚡️runs with the land

“Something appurtenant to property if it “runs with land” forever

  • tenants right in landlord property is called leasehold estate
  • easement in gross = when utility company services on private property
  • right for period of time is license which does not run with land
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22
Q

👁property ownership

A lien filed for the sole purpose of preventing a transfer of property pending the outcome of litigation is called a

  • lis pendens
  • judgement lien
  • tax lien
  • mechanics lien
A

⚡️LIS pendes

“A recorded notice starting a law suit is pending that may affect title to the defendants property”

  • tax lien = placed on property to secure payment of taxes.
  • mechanics lien = filed to assure payment labor/ materials
  • judgment lien = filed to secure payment of confirmed debt
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23
Q

👁property ownership

The additional of soil to property by the gradual operation of natural causes is termed

  • alluvium
  • accretion
  • ad valorem
  • erosion
A

⚡️accretion

“Accretion is opposite of erosion”

  • erosion = gradual wearing away
  • alluvium = silt that is suspended in the water and carried downstream
  • ad valorem = (Latin) for “according to valuation” estimating real property
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24
Q

👁 property ownership

After a buyer purchases a property, he has a survey made and finds that his neighbor recently built a fence on his land. This is an example of a(n)

  • appurtenance
  • party wall
  • encroachment
  • adverse possession
A

⚡️encroachment

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25
Q

👁property ownership

With regard to real estate, accretion refers to which process

  • silt suspended water
  • method of evaluating property according to its value
  • gradual wearing away of the property
  • gradual building up of the property
A

⚡️gradual building up of the property

“Accretion = build up of property through natural process”

  • erosion = wearing away
  • alluvium = silt suspended water
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26
Q

👁property ownership

Which is necessary to create an easement by prescription?

  • constant regular use of land for the stated prescription of years
  • hostile and adverse use of the land
  • open and notorious use of the land
  • all answers listed
A

⚡️all listed

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27
Q

👁property ownership

John dies and leaves the township 10 acres to use as it wishes, but NOT on Sunday. If the land is used for any purpose on Sunday, ownership will pass to his son, Bill. What describes the interests of the town and bill, respectively?

  • township: an estate for years; bill: a periodic tenancy
  • township: a fee simple absolute estate; bill: a life estate
  • township: a fee simple determinable estate; bill: a remainder interest
  • township: a fee simple defeasible estate; bill: reversionary interest
A

⚡️township: a few simple determinable estate; bill: remainder interest

“Automatically terminated and immediately reverts to the grantor or his heirs upon the occurrence upon the triggering event or condition”

  • conditional estate = upon occurrence of limiting condition may or may not be terminated according to grantor
  • absolute: places no conditions on use
  • estate for years and periodic tenancies describe leasehold estates
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28
Q

👁property ownership

How many acres are in a government rectangular survey that consists of the SW 1/4, NE 1/4, NW 1/4 of section 13, blendon township?

  • 80
  • 10
  • 40
  • 20
A

⚡️10

“A section has 640 acres in it. A quarter of a section has 160 acres, a quarter of a quarter has 40 acres, and a quarter of a quarter of a quarter would have 10.

  • 640/ 4/ 4/ 4 = 10
  • 4 x 4 x 4 = 64 & 640/ 64=10
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29
Q

👁property ownership

Buyer executes a chattel mortgage in favor of a lender. Which type of property would be covered by chattel mortgage?

  • automobile
  • real estate
  • newly installed furnace
  • office furniture and equipment
A

⚡️office furniture and equipment

“Chattel mortgage creates a lien on personal property”

-automobile would never be considered as chattel. It is completely separate from real property

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30
Q

👁property ownership

The right to use, enjoy, possess and dispose of real property is commonly referred to as

  • bill of sale
  • bundle of rights
  • building codes
  • encumbrances
A

⚡️Bundle of rights

” all rights and enjoyment is =bundle of rights”

  • building codes = laws that builders must obide
  • bill of sale = sale transfer ownership of personal property
  • encumbrance = burdens not title
31
Q

👁property ownership

When a firm is NOT paid after furnishing material for the construction of an apartment building, the firm Amy file a(n)

  • deficiency judgement
  • writ of liability
  • mechanics lien
  • estoppel certificate
A

⚡️mechanics lien

“Filed by contractor, laborer or materials supplier whose work or materials enhanced value of real property.

  • writ = a judgment
  • creditor may obtain deficiency judgement if a foreclosure action fails to raise enough proceeds to cover the original lien
  • estoppel used by mortgagee to stop mortgagors from inserting a defense of an “amount claim due on owing” under mortgage.

-

32
Q

👁property ownership

Which type of legal description would a new residential sub-developer most likely use?

  • meets and bounds
  • lot and block
  • government rectangular survey
  • sections and townships
A

⚡️lot & block

  • most states use the lot and block method to describe real property of newly created parcels are smaller than the minimum required by statute (i.e.) per lot size of less than 5 acres
  • (i.e.) lot block description: lot #16 of Norwich lake estates subdivision, located Texas county of Wichita
33
Q

👁property ownership

Which would be considered an encumbrance but NOT a lien?

  • mortgage
  • mechanics lien
  • IRS taxes
  • easement
A

⚡️easement

” both financial lien and easement is an encumbrance but this particular question refers to it not being a lien”

So answer is (easement )

34
Q

👁property ownership

A legal description of property based on lines of longitude and latitude, townships, and sections is described as

  • metes and bounds
  • government rectangular survey
  • lot and block
  • recorded play of subdivision
A

⚡️government rectangular survey

“Gov rec. system consist of townships drawn longitude and latitude.

  • lot & block and subdivision = same and usually in residential subdivisions
  • metes and bounds = based on points of beginning distances, directions and degrees
35
Q

👁property ownership

Which type of description is inadequate for describing property in a deed?

  • lot number
  • meets and bounds description
  • rectangular survey description
  • house number
A

⚡️house number

“Address is not a legal description”

-legal description is enough to give competent surveyor enough info to find property and stake out its boundary lines

36
Q

👁property ownership

A commercial tenant offers a bank his showcase, furniture, paintings, and other items that he has placed in the rental property. In favor of the bank, the tenant would execute a(n)

  • leasehold
  • easement
  • chattel mortgage
  • mortgage
A

⚡️chattel mortgage

“Chattel creates lien on personal property”

  • mortgage = encumbered real property
  • easement = right to use land for purpose
  • leasehold = does not convey title…jus possession
37
Q

👁property ownership

A valid encumbrance affecting title of estate and land (such as a mortgage or judgement) is called a

  • chattel mortgage
  • cloud on title
  • contract for deed
  • condemnation
A

⚡️cloud on title
“Not clear from liens” mortgage. Or judgements”

  • chattel is against (personal) not (real) property
  • contract for deed is another name for land contract
  • condemnation = gov. Take private property for public use
38
Q

👁property ownership

Which would be considered chattel?

  • New furnace
  • goods or items of personal property not annexed to real property
  • fence
  • in-ground swimming pool
A

⚡️good or items of personal property not annexed to real property

“Chattel is personal property, goods or items or property (moveable or immovable) that are not real property”

39
Q

👁property ownership

One of the appurtenances to a parcel of land would be a(n)

  • easement in gross
  • assignment
  • bill of sale
  • bundle of rights
A

⚡️bundle of rights

“Legal rights to real property such as parcel of land”

“Runs with land”

  • bill of sale = written instrument transfers ownership of tangible personal property, not real property
  • easement = a right
  • assignment = transfers obligations to another party
40
Q

👁property ownership

Rich buys a tract of land and receives an easement to cross sams property to access a community lake. Rich is benefitting from the easement and thus has a(n)

  • encumbrance
  • servient estate
  • dominant estate
  • encroachment
A

⚡️dominant estate

"Rich = dominant"
"Sam = servient"
  • encumbrance = burden on title
  • encroachment = object on someone else’s property
41
Q

👁property ownership

Jack gives a life estate to Jill for so long as bob lives. Upon bobs death, the property will pass to Larry. What are the interests of Jill and Larry?

  • pur autre vie with remainder
  • ordinary life estate with remainder
  • ordinary life estate with reversion
  • pur autre vie with reversion
A

⚡️pur autre vie with remainder

” jack will not get life estate back”

Jill = life tenant w/ BOB is measuring life

Life tenant for someone else life spans is (pur autre vie)

Larry a future interest in property = remainderman

42
Q

👁property ownership

Which is NOT appurtenant to real property?

  • chattels
  • mineral rights
  • easement
  • deed of trust
A

⚡️chattels

” personal property that never stays with land”

  • deed of trust = mortgage in some states appurtenant to ownership
  • easement & mineral rights = run with land
43
Q

👁property ownership

Mr. Green gives a life estate to Sandra. Upon Sandra’s death, the estate is to go to Mr. Blue. Mr. Blue’s interest is known as a

  • leasehold interest
  • reversionary interest
  • contract for deed
  • remainder interest
A

⚡️remainder interest

“Remainder means “going forward to someone else”

  • reversionary interest = go back to original grantor
  • leasehold = temporary right to possession without title of ownership
  • contract for deed = another name for land contract
44
Q

👁property ownership

The legal description of a property based on points of beginning, distances, directions, and degrees is a

  • government rectangular survey
  • metes and bounds description
  • lot & block description
  • recorded plat of subdivision
A

⚡️metes and bounds description
“Start at point of beginning sometimes with monuments as markers and end at same point”

  • gov rectangular = land controlled by gov
  • lot & block = how developers legally describe the property
  • recorded plat = detailed map recorded in county where land is located
45
Q

👁 property ownership

Real property rights are defined in terms of a “bundle of rights” that includes the right to

  • build a house
  • grow flowers
  • sell at a cheap price
  • all of the answers listed
A

⚡️all listed

“Bundle of rights allows fee simple owner to real property to use, enjoy, and dispose of the property as he wishes, so long as his use is legal and does not adversely affect others

46
Q

👁property ownership

Which is NOT real property?

  • drapes
  • an in-ground swimming pool
  • sump dump
  • a built-in-dishwasher
A

⚡️drapes

“Drapes are not but maybe the fixture holding it is fixed”

47
Q

👁property ownership

Which is NOT an example of common area in a condominium?

  • swimming pool
  • living room
  • laundromat
  • land
A

⚡️living room

“Living room is part of air space owner owns exclusively”

-Laundromat, swimming pool, and land are all common elements owned by all & used by all

48
Q

👁property ownership

Subsurface rights, such as mineral rights & the limited right to use the air above the surface of real property, are commonly referred to as

  • avionics
  • appurtenances
  • actuaries
  • appliances
A

⚡️appurtenances

“Rights that go with real property”

  • appliances are (PP) unless built in or attached
  • actuaries = skilled mathematicians
  • avionics = science of electronics applied to aviation
49
Q

👁property ownership

Mike and Larry take title together at the same time under the same deed, each owning half of the real property. What form of co-ownership will law presume they have?

  • Joint tenancy
  • estate by the entireties
  • tenancy in common
  • severalty
A

⚡️tenancy in common

“Did not specify if right of survivorship so automatically presumes as tenancy in common”

50
Q

👁property ownership

A garage door opener is often considered a fixture. As such, it would be an example of

  • actual annexation
  • adverse possession
  • prescriptive easement
  • constructive annexation
A

⚡️ constructive annexation

” when something is so closely related to the property it is a fixture even though it is not physically attached”

  • actual annex. = Physically attaching something to land
  • adverse possession = when one acquires title to land by occupying the property for specified time
  • prescriptive easement is acquiring right to use property by using without permission for specified period of time
51
Q

👁property ownership

Which is NOT limited common area?

  • patio of a unit
  • unit the manger lives in
  • assigned parking
  • foyer in a unit
A

⚡️foyer in a unit

” it is a part of unit therefore not common area”

52
Q

👁property ownership

A tenant farmer, upon being told the field he farms has been sold, may have to

  • replant to assure the new landlord of an income
  • plow under his crops
  • vacate the property once
  • vacate the property but with the right to harvest the crops at maturity
A

⚡️vacate property but with the right to harvest the crops at maturity

“Under doctrine of emblements after planning, before harvest, tenant farmer who is in not default may re-enter land and harvest first crop to mature after tenancy ends

53
Q

👁property ownership

An example of a natural attachment to real property is

  • garden bench
  • a chain link fence
  • landscaping
  • an electrical power pole
A

⚡️landscaping

“Natural attachment” the rest is non natural

54
Q

👁property ownership

Two people are buying a property for $165,000 at 7% interest. The maximum monthly payment they can afford is $1,100. Their loan has to be for a minimum of _____ years to pay it off and stay within their budget. (Use amortization schedule)

  • 30
  • 20
  • 25
  • 15
A

⚡️30

“Amortization schedule uses a dollar amount per $1000 borrowed.

55
Q

👁property of ownership

The highest, best form of ownership interest in real estate is called

  • leasehold
  • fee simple
  • fee simple conditional
  • life estate
A

⚡️fee simple absolute

“Absolutely and can do whatever he wants”

  • fee simple conditional = owns forever only so long he does not violate
  • life estate = given so long as the owner or specified person lives
  • leasehold estate = not a form of land; rather a type of interest by a tenant (i.e.) a lease
56
Q

👁property ownership

All property is classified as either real or

  • fixtures
  • emblements
  • easements
  • personal
A

⚡️personal property

“Moveable and not permanently attached to real property”

  • fixtures = attached to real property
  • emblements = crops
  • easement = encumbrance on real property
57
Q

👁 property ownership

The heirs of an estate are selling their deceased father home. They remove a bedroom set, an organ bench what matches a built-in organ, a television, and various famous paintings. Which would be considered personal property?

  • TV set
  • famous painting
  • bedroom set
  • organ bench
A

⚡️organ bench

“Since it was built to match the built in organ under doctrine of constructive annexation”

-everything else (PP)

58
Q

👁property ownership

Attaching a fixture to real property, therefore making it part of the real property, is

  • adverse possession
  • the doctrine of emblements
  • actual annexation
  • easement by prescription
A

⚡️actual annexation

” when personal property is attached to real property”

  • doctrine of emblements refers to crops yet to be harvested from leasehold land
  • adverse possession = acquisition of title through hostile occupancy of another’s property
  • easement same as adverse jus no transfer of title
  • constructive annexation = occurs when (PP) is associated with real property in such a way that law treats as a fixture, even through it is not physically attached to property
59
Q

👁property ownership

Which is considered real property

  • light fixtures
  • tenants fixtures
  • emblements
  • area rugs over a hardwood floor
A

⚡️light fixtures

“Part of the home”making real property

  • tenant fixtures can be removed prior to expiration of lease
  • emblements are crop which allowed to be moved
  • area rug is not a fixture
60
Q

👁property ownership

Which is both lien and an encumbrance on property?

  • license
  • mortgage
  • deed restriction
  • easement
A

⚡️mortgage

“Is actually and financial lien and encumbrance”

-everything else is jus an encumbrance

61
Q

😎valuation and market analysis

An insurance company might use an appraisal to determine

  • the ethnic composition of a neighborhood, for better rate estimates
  • none of these answers
  • market price
  • replacement cost to determine the amount of coverage
A

⚡️replacement cost, to determine the amount of coverage required

62
Q

😎valuation and market analysis

Situs can best be define as

  • when the property is joined to increase value
  • An area of preference, which can attribute value
  • the joining of several parcels
  • a piece of land that has been enhanced and is ready for a structure
A

⚡️an area of preference, which can attribute value

  • joining is assemblage of several parcels of land
  • pottage is when joined to ‘increase’ value
  • site is enhanced land ready for structure
63
Q

😎valuation and market analysis

Which income is calculated by subtracting vacancy and collection losses and expenses from gross income

  • effective gross income
  • gross income
  • net income
  • capital gain
A

⚡️effective gross income

“effective g. Income is gross income minus a figure for vacancy and collections”

  • gross income. Is the total income a property produces; used to calculate a gross rent multiplier
  • net income. Is the income after expenses and used in capitalization method
  • capital gain. Is the portion of income that is taxed after a sale
64
Q

😎valuation and market analysis

A site can best be define as

  • piece of land that has been enhanced and is ready for structure
  • the joining of several parcels of land
  • an area of preference, which can attribute value
  • when the property is joined to increase value
A

⚡️Piece of land that has been enhanced and is ready for structure

-REFER: market analysis Q2

65
Q

😎valuation and market analysis

It would be unethical for an appraiser to

  • ask for payment in advance
  • base her payment on a percentage of the appraised value
  • appraise a property in which she has a disclosed interest
  • refuse to make a commercial appraisal because she has only residential experience
A

⚡️UNETHICAL: to base payment of a percentage of appraised value

  • obtain necessary assistance and/or competence if asked to appraise property outside of her/his field of expertise
  • also must disclose any personal Future/present interest in property
  • no way to take percentage from appraised value
  • there is no prohibition asking for payment in advanced
66
Q

😎valuation and market analysis

What best defines highest and best use of land?

  • the land produces highest total gross annual income
  • the land is in compliance with zoning and deed restrictions
  • the use of the land allows for minimum depreciation
  • the use of the land results in the highest net income attributable to the land
A

⚡️the use of the land results in the highest net income attributable to the land

“This defines highest best use even more then
(total gross annual income)

67
Q

😎 valuation and market analysis

An appraisal is the

  • utility
  • cost, less depreciation for age and condition
  • supported opinion of value
  • value divided by gross income
A

⚡️supported opinion of value

“An appraisal is an opinion of value based on objective evidence and date”

68
Q

😎valuation and market analysis

Staff appraisers might be used by a

  • both a large corporation with many properties to manage and a large mortgage company reviewing hundreds of appraisals a year
  • large corporation with many properties to manage
  • homeowner who wants to estimate of value
  • large mortgage company reviewing hundreds of appraisals a year
A

⚡️both a large corporation with many properties to manage and a large mortgage company reviewing hundreds of appraisals a year

-staff appraisers are often used by these companies. They are usually paid by salary

69
Q

😎valuation and market analysis

Features that enhance the desirability of real estate are often called

  • amenities
  • assessments
  • appurtenances
  • appraisal
A

⚡️amenities

“(i.e.) amenity - fireplace, desirable location, floor plan, anything with value (enhances desire)”

  • assessments - are done by government to determine taxes
  • appraisal - opinion of value
  • appurtenance - right that goes with property (for the life of the land)
70
Q

😎valuation and market analysis

A defensible opinion or estimate of value of a real property as of a certain date is known as

  • appreciation
  • market price
  • marketable title
  • appraisal
A

⚡️appraisal

  • appreciation - when real property is more valuable
  • market price - refers to the price the buyer actually pays a seller at closing
  • marketable title - refers to ease with which ownership of property can be transferred from one party to another
71
Q

😎valuation and market analysis

Which type of income is calculated by subtracting a figure for vacancy and collection losses from the gross income multiplier?

  • capital gain
  • gross income
  • effective gross income
  • net income
A

⚡️effective gross income

“Is gross income minus a figure for vacancy and collections”

  • capital gain - portion of income that is taxed after sale
  • gross income - total of income property produces; used to calculate gross rent multiplier
  • net income - income after expenses; for capitalization method
72
Q

😎valuation and market analysis

A large manufacturer is building a factory in flint. This will be a definite economic boost to the city. How will this affect home prices in this area?

  • there is no real way to determine this
  • home prices will rise
  • home prices will fall
  • will make no immediate difference
A

⚡️home prices will rise

“Supply and demand. More people moving into area = fewer homes to choose = higher price homes”

73
Q

😎valuation and market analysis

The income cap technique uses

  • net monthly income
  • annual net income
  • annual gross income
  • gross monthly income
A

⚡️annual net income

Annual gross - is the total income

Net income - is income minus expenses

74
Q

😎valuation and market analysis

An increase in the value of property, either due to positive improvements in the area or elimination of negative factors, is called

  • appurtenance
  • appreciation
  • assignment
  • appraisal
A

⚡️appreciation

“Increase in value”

  • appurtenance - rights run with land
  • assignment - obligation to be liable for conditions in contract
  • appraisal - defensible opinion or estimate by certain date

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