Estate Fundamental Flashcards
The most probable price a property should bring in a fair sale
Market Value
- Office Building, apartment complex, shopping center
- Schools or church
- Vacant land
- Income Approach
- Cost Approach
- Sales Comparison Approach
What the property actually sells for is
Market Price
A promissory note
Makes the borrower personally liable for the debt
The purpose of an appraisal is to
Estimate the market value
The four characteristics necessary for property to have value are:
Scarcity, transferability, utility, and demand
In the appraisal process, which of the following reflects the stages through which a neighborhood passes?
Growth, stability, decline, and renewal
Which of the following would require the value of the land to be calculated separately from the value of the improvements?
The Cost Approach
The loss of value due to the normal wear and tear on a property is called
Physical deterioration
Airplane hangars, warehouses, and industrial buildings uses
Cubic Footage
The pledging of property for a loan without actually giving up possession of the property is referred to as
Hypothecation
The charge a borrower pays the lender for use of the money would be BEST describe as
Simple interest
Which of the clauses would give the lender the right to have all future installments become immediately due and payable upon default by the borrower?
Acceleration Clause
A promissory note
Makes the borrower personally liable for the debt
A state law that regulates the maximum interest rates that lenders can charge is known as the
Usury law
