exam Flashcards
A single-family residence doesNOTreach its full value because it is located in an industrial area. This illustrates the appraisal principle of
a. competition.
b. plottage.
c. conformity.
d. increasing and diminishing return.
c. conformity.
The market value of a property is
the most probable price a property should bring.
What should be done to the sales price of the comparable property if it is missing features that are present in the subject property?
It should be increased.
Which creates a lien against the property as security for the debt?
Deed of trust
Charging interest in excess of the maximum rate of interest set by state law is called
usury.
Which originate loans with either their own money or funds borrowed from other institutions?
Mortgage bankers
In an amortized loan, the initial payments are applied mainly to
the interest.
Donna gives Tom a general warranty deed that doesNOTmention an existing mortgage lien on the property. This is a violation of the covenant
a. of seisin.
b. of quiet enjoyment.
c. of further assurance.
d. against encumbrances.
d. against encumbrances.
What kind of notice refers to information that is available in the public record?
Constructive
A brief history of all the documents affecting title is
an abstract of title.
A bedroom without a closet is an example of what type of depreciation?
Functional obsolescence
The final step in the cost approach for estimating value of property is to
add estimated land value to the depreciated cost of the building and other site improvements.
The first step in estimating property value using the income approach is to estimate
annual potential gross income.
A loan that isNOTinsured or guaranteed by a government agency against default of the borrower is called
a. a VA loan.
b. a conventional loan.
c. an FHA loan.
d. a nonconventional loan.
b. a conventional loan.
What kind of title policy is guaranteed for the amount paid for the property?
Owner’s
The purpose of the Real Estate Settlement Procedures Act (RESPA) is to
ensure that buyers and sellers know all settlement costs.
If the seller’s debits are greater than the seller’s credits on the closing statement, the seller will
pay cash at closing.
The appraisal principle of value stating that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable property is
substitution.
In which approach to value does an appraiser base the property’s value on reproduction cost?
Cost
Which isTRUEof the reconciliation process in determining a property’s estimate of value?
a. The process of reconciliation averages the three indications of value computed by an appraiser: the sales comparison approach, the cost approach, and the income approach.
b. The income approach would be given the greatest weight in valuing an apartment building.
c. The cost approach would be given the greatest weight in valuing an existing single-family residence.
d. The sales comparison approach would be given the greatest weight in valuing churches, libraries, and schools.
b. The income approach would be given the greatest weight in valuing an apartment building.
The market value of a property is
the most probable price a property should bring.
What should be done to the sales price of the comparable property if it is missing features that are present in the subject property?
It should be increased.
