FPV Flashcards
What are the 4 elements of Problem Identification
Purpose - objective
Intended Use - guides scope of work
Definition of Value - may vary given purpose or intended use
Effective date
What is the purpose of discussing Property Content?
Occurs at the beginning of each assignment. It’s about understanding the subject and its content.
Property Content
What legal elements will I consider at this stage in the case study
Property rights
Potential encumbrances (incl. restrictive covenants)
What are the elements of Property Content?
Physical
Legal
Financial
Location
What are the 3 legal considerations?
Property Rights
Land Use Regulations
Legislation/Courts
How will I describe Property Rights in the “Legal Considerations” section.
Identify (fee simple, leased fee) and any encumbrances
Understand the effects on value
What should I know about legislation/courts
Basic knowledge of aspects of law that affect the assignment
What is the definition of HBU
The reasonably probable use of real prop that is physically possible, legally permissible, financially feasible and maximally productive, that results in the highest value
Describe the “physically possible” test of HBU
It addresses the physical characteristics of the site that might affect its hbu
Describe the “legally permissible” test of hbu
Determines what uses are permitted, what could be permitted and what are restricted
Aside from site shape/size/topography, what other factors should you consider with physical permissibility?
Location (exposure)
Defects
Surrounding uses
Transportation
How do you describe the “financially feasible” HBU test
Explores the uses that pass the first 2 tests to determine if the uses have value to commensurate costs
What are the 2 steps of financial feasibility
Market/marketability analysis
Financial analysis
What are the 2 steps of financial feasibility
Market/marketability analysis
Financial analysis
What is the purpose of a marketability analysis?
Determines if there is a market for the use
