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Basic Appraisal Principles > Course Review - Practice Test > Flashcards

Course Review - Practice Test Flashcards

Review of the whole course. 76 questions

1
Q

Fannie Mae, Freddy Mac, Ginny Mae, and Farmer Mac are part of the secondary mortgage market.
True
False

A

True

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2
Q

A corporation offers shares of stock to prospective tenants in the real estate that it owns. This is cooperative ownership.
True
False

A

True

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3
Q

The right of possession, transfer, lease, and use are components in the total range of ownership interests known as the bundle of rights.
True
False

A

True

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4
Q

The Rectangular (government) survey system is based on township lines, base lines, range and tier.
True
False

A

True

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5
Q

The principle of contribution states that value is created and sustained when market forces are in equilibrium.
True
False

A

False

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6
Q

A general lien that binds all of the assets of a debtor, including real property, is called a judgment.
True
False

A

True

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7
Q

A deed used to convey any interest to the grantee without any warranty of title is a quitclaim deed.
True
False

A

True

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8
Q

Cash equivalency in a market value appraisal accounts for excessive seller concessions by making adjustments to the comparable sales used in the appraisal.
True
False

A

True

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9
Q

Fee simple and life estates come under the general category of freehold estates.
True
False

A

True

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10
Q

The components of a valid contract are that it be voluntary, include legally competent parties, have legal consideration, and a legal act.
True
False

A

True

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11
Q

The first two tests for highest and best use are physically possible and legally permissible.
True
False

A

True

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12
Q

The principle of anticipation is based on the perception that value is created by the expectation of benefits to be derived in the future.
True
False

A

True

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13
Q

A quit claim deed conveys any interest of the grantor, without any guarantees.
True
False

A

True

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14
Q

All easements are encumbrances.
True
False

A

True

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15
Q

The total range of property rights, which includes the right of possession, the right to transfer, to lease, to sell, to develop, are known as a partial estate.
True
False

A

False

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16
Q

In developing an opinion of the highest and best use of a property, financial supported and maximum productivity are the first two criterion considered.
True
False

A

False

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17
Q

Seller concessions such as mortgage interest buy downs or gift inducements included in the sales price must be considered and converted to cash or terms equivalent to cash.
True
False

A

True

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18
Q

An economic concept based on exchange, such as value, is a fact.
True
False

A

False

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19
Q

Value is an opinion, not a fact.
True
False

A

True

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20
Q

Price is a fact.
True
False

A

True

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21
Q

In a condominium, a corporation holds title to the real estate.
True
False

A

False

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22
Q

Fee simple and life estates are included under the general category of freehold estates.
True
False

A

True

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23
Q

Surface rights include land, water, and anything attached to the land either naturally or by human hands.
True
False

A

True

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24
Q

A district is a group of complementary land uses.
True
False

A

False

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25
Q

A neighborhood is a group of homogenous property types.
True
False

A

False

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26
Q

An example of governmental forces would be asbestos contained in a commercial building.
True
False

A

False

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27
Q

In a gross lease, the tenant pays all operating expenses.
True
False

A

False

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28
Q

All states except Texas, Arizona, and Nevada have laws that require real estate to be owned by either a corporation or partnership.
True
False

A

False

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29
Q

An easement in gross is an encumbrance.
True
False

A

True

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30
Q

A scope of work decision includes intended use, intended users, effective date, and type and definition of value.
True
False

A

False

Note: That is the Identification of the Problem, step 1. Scope of work (step 2) involves the type of data and extent of research and analysis used.

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31
Q

A statistical mean is the most frequently occurring number in an array.
True
False

A

False

32
Q

The price of money is expressed as a capitalization rate.
True
False

A

False

33
Q

The word price means the most probable amount that a willing buyer would pay a willing seller.
True
False

A

False

34
Q

The right of the government to take private property for public use upon payment of just compensation is called eminent domain.
True
False

A

True

35
Q

The right of the government to control construction and development is called police power.
True
False

A

True

36
Q

If you die intestate and without heirs, the state will acquire your property through escheat.
True
False

A

True

37
Q

A township contains 640 sections.
True
False

A

False

38
Q

A township is six miles by six miles.
True
False

A

True

39
Q

A section is one mile square.
True
False

A

True

40
Q

An acre contains 43,660 Square Feet.
True
False

A

False

41
Q

In order to satisfy the competency requirement of USPAP, an appraiser must be familiar with the market, geographic area, the analytical technique used, and the specific property type.
True
False

A

True

42
Q

The stages in the life cycle of a neighborhood include, growth, stability, decline, and implosion.
True
False

A

False

43
Q

When middle-and upper-class purchase and renovate in a declining neighborhood, it is called urbanization.
True
False

A

False

44
Q

The principle of consistent use states that land can not be valued for one use, and the improvements for another.
True
False

A

True

45
Q

The amount that a particular purchaser agrees to pay and a particular seller agrees to accept is called market value.
True
False

A

False

46
Q

The principle of contribution states that the value of a component is equal to its cost.
True
False

A

False

47
Q

An interim use is one that the city permits between zoning changes.
True
False

A

False

48
Q

A trust is an ownership interest held by a person called a fiduciary for the benefit of a third party.
True
False

A

True

49
Q

The interests, benefits and rights inherent in the ownership of physical real estate is called real property.
True
False

A

True

50
Q

The Competency Rule does not require competency at the outset of an assignment, but does by the completion of the assignment.
True
False

A

True

51
Q

Debt and equity are the two primary sources of capital for real estate markets.
True
False

A

True

52
Q

The four agents of production are land, labor, capital and entrepreneurial coordination.
True
False

A

True

53
Q

A license is an encumbrance on property rights.
True
False

A

False

54
Q

A quantitative analysis involves a mathematical process, while a qualitative analysis does not.
True
False

A

True

55
Q

Building size, acreage, parking spaces, and rentable area all examples of quantitative data.
True
False

A

True

56
Q

A balloon payment is the down payment made at the beginning of the loan
True
False

A

False

57
Q

A balloon mortgage is a partially amortized mortgage with a lump sum payment at the end.
True
False

A

True

58
Q

Appraisers and brokers set prices.
True
False

A

False

59
Q

Supply and demand set prices.
True
False

A

True

60
Q

Short-term buyers and sellers trade in the capital markets.
True
False

A

False

61
Q

An appraisal is an opinion of price.
True
False

A

False

62
Q

A VA loan is a good example of a guaranteed mortgage.
True
False

A

True

63
Q

An FHA loan is a good example of an insured mortgage.
True
False

A

True

64
Q

An appraisal is the act or process of developing an opinion of value.
True
False

A

True

65
Q

An appraisal that has an effective date of value in the past is called a prospective appraisal.
True
False

A

False

66
Q

A lien is an encumbrance that is a financial claim against a property that can affect the transfer of title
True
False

A

True

67
Q

An easement appurtenant is attached to, and passes with the dominant estate.
True
False

A

True

68
Q

An appraiser is one expected to perform valuation services competently, and in a manner that is independent, impartial, and objective.
True
False

A

True

69
Q

The four factors of value include utility, scarcity, desire and effective purchasing power.
True
False

A

True

70
Q

Joint tenancy involves the right of survivorship.
True
False

A

True

71
Q

Zoning is an example of police power.
True
False

A

True

72
Q

Appraisal consulting involves an opinion of value as a component of the analysis.
True
False

A

True

73
Q

A retrospective appraisal has an effective date in the past, and a prospective appraisal has an effective date in the future.
True
False

A

True

74
Q

Real estate is the physical land and appurtenances, while real property is the rights inherent to the physical land and appurtenances.
True
False

A

True

75
Q

The NW ¼ of the NW ¼ of the NW ¼ of Section 24,Township 13N, Range 52E, contains 10 acres.
True
False

A

True

76
Q

A corporation offers shares of stock to prospective tenants in the real estate that it owns. This is cooperative ownership.
True
False

A

True

Basic Appraisal Principles (47 decks)

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