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Farm & Rural Real Estate Appraisal > Midterm 1 > Flashcards

Midterm 1 Flashcards

1
Q

What are Ratio Analyses?

A

A method of allocating values of separate classes of land; allows analysis of “imperfect” markets; each sale is adjusted to the subject’s “land mix” (% Class I soil, … etc.); Highest class of land is considered 100%, with lower classes determined as a percentage of the highest class.

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2
Q

What is a lien?

A

Charge against property in which the property is security for the payment of debt.

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3
Q

What is the Jurisdictional Exception Rule of USPAP?

A

Provides that the remainder of USPAP applies in the event that some part of USPAP is contrary to the law or public policy of a jurisdiction.

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4
Q

What is real estate?

A

Physical land and anything attached to it.

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5
Q

What is the Public Land Survey System?

A

AKA Rectangular Survey or Government Survey. Locates properties within specific regions (designated by a Principal Meridian and Baseline) using units of tiers and ranges to locate the township, sections within a township, and subdivisions of sections.

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6
Q

What is avulsion?

A

Sudden and significant movement consuming the bank of a stream.

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7
Q

What is Fee Simple Estate?

A

Absolute ownership unencumbered by any interest of estate, subject only to the four powers of government.

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8
Q

What is appreciation?

A

An increase in price or value of a property or commodity resulting from an excess of demand over supply or other factors.

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9
Q

What is the approximate size of a section of a township?

A

1 mile by 1 mile.

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10
Q

What is personal property?

A

All physical property that is not classified as real estate. Portable, tangible objects.

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11
Q

What is the general purpose of the Farmland Mapping and Monitoring service?

A

To influence governmental review and approval of land use proposals.

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12
Q

The ability to satisfy a human want, need, or desire.

A

Utility

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13
Q

What are units of comparison?

A

An increment by which quantities of the same type may be measured.

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14
Q

Above what rating is considered “very poor” in the Storie Index?

A

10%

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15
Q

The requirements of adverse possession:

A

Hostility, possession, open/notorious, exclusive use, continuous use.

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16
Q

What is the purpose of Gross Income Multipliers?

A

To compare income producing characteristics in the Sales Comparison Approach, mainly for properties where income in the sole/primary motivation for ownership.

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17
Q

The amount asked for, offered, or paid for a property.

A

Price

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18
Q

What are conservation easements?

A

Restrictions on property rights intended to preserve the status quo of the property.

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19
Q

What is value?

A

The monetary worth of a property, good, or service to buyers and sellers at a given time.

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20
Q

How many feet is in a chain?

A

66

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21
Q

A forecast of the value expected at a specific future date.

A

Prospective value

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22
Q

What is scarcity?

A

Present or anticipated supply relative to demand.

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23
Q

What is the main purpose of USPAP Appraisal Standards?

A

To address the development and communication of appraisals or reviews. Appraisers must understand and correctly employ recognized methods and techniques necessary to produce a credible appraisal, and report results that are meaningful and not misleading.

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24
Q

A value concept in which governmental agencies specify a highest and best use of public lands for purchases of preservation and conservation.

A

Public interest value

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25
Q

What is retrospective value?

A

An opinion of value that is likely to have applied as of a specific historic date.

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26
Q

The Sales Comparison Approach is based on the Principle of ______.

A

Substitution

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27
Q

What is valuation?

A

The process of estimating value.

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28
Q

Physical characteristics of real estate.

A

Immobility, indestructibility, uniqueness.

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29
Q

Expectations of an appraiser’s valuation services:

A

Competent, independent, impartial, objective.

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30
Q

What are trade fixtures?

A

Personal property that is attached by a tenant to a rented space or building for use in conducting a business, removed by tenant at the end of the lease term.

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31
Q

Termination of an easement due to the easement becoming no longer usable.

A

Termination by destruction of the servient estate

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32
Q

Sinking fund factor is the reciprocal of _______.

A

Amount of $1 per period

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33
Q

What is prospective value?

A

A forecast of the value expected at a specific future date.

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34
Q

What is investment value?

A

The specific value of an investment to a particular investor based on individual investment requirements.

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35
Q

How do you calculate Storie Tract Ratings with acreage weights?

A

The sum of the products of the acreages and Index ratings of the soil types of the property.

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36
Q

What is inflation?

A

An erosion of the purchasing power of currency.

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37
Q

The right to prevent an otherwise lawful activity on another’s property.

A

Negative easement.

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38
Q

What is an affirmative easement?

A

The right to use another’s property for a specific purpose.

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39
Q

How is rate of return on equity calculated (before debt service)?

A

Net Operating Income (NOI) / equity

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40
Q

How many rods are in a chain?

A

4

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41
Q

Ability to participate in a market; monetary ability to fulfill a desire.

A

Effective Purchasing Power

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42
Q

At what interval (either east-west or north-south) from the initial point are parallels and guide meridians located?

A

24 miles

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43
Q

Right that entails that the property is occupied or held by the title holder.

A

Possession

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44
Q

Above what rating is considered “good” in the Storie Index Rating?

A

60%

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45
Q

What are Matched Pair Analyses?

A

Determining the value of differences by comparing properties that differ in only one respect.

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46
Q

Why are guide meridians discontinuous?

A

To account for the curvature of the Earth.

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47
Q

An appraisal report must be written (T/F)

A

False, may also be oral.

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48
Q

How many acres in a section of a township?

A

640

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49
Q

How are the directions of deed calls formatted?

A

Based on a north or south bearing and the variation from the bearing, in terms of degrees, minutes (60/degree), and seconds (60/minute).

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50
Q

How is a Gross Income Multiplier calculated?

A

Total sale price / estimated gross income

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51
Q

What would be the grade of a soil with a Storie Index Rating of 17%?

A

Very poor

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52
Q

Termination by a signed written agreement.

A

Termination by release.

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53
Q

Value of the remaining property after a partial taking.

A

Remainder value

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54
Q

The principle in which, among similar commodities/goods/services, the one with the lowest price attracts the greatest demand and distribution.

A

Principle of Substitution

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55
Q

What is desirability?

A

A potential purchaser’s wish for an item to satisfy human needs or wants beyond essential life-support needs.

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56
Q

What is prescription?

A

The creation of an easement in a way akin to adverse possession.

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57
Q

What is the basic implication of the Sales Comparison Approach?

A

That property values tend to be set by the cost of acquiring an equally desirable substitute property.

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58
Q

What is liquidation value?

A

The most probably price that a specified interest in a real property is like to bring under extreme compulsion to sell with limited marketing effort and time allowed, among other conditions.

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59
Q

Private restrictions include:

A

Covenants, conditions & restrictions (CC&R’s), Conservation easements, limits on surface access to exploit mineral rights, and prohibitions on a particular use.

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60
Q

Valuation applies to a specific _____ as of a given _____.

A

Parcel; date

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61
Q

What is an easement?

A

An interest in real property that conveys use but does not convey ownership.

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62
Q

What would be the grade of a soil with a Storie Index Rating of 54%?

A

Fair

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63
Q

What is the range of the Storie Grade “non-agricultural”?

A

Less than 10%

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64
Q

What is a Leasehold Estate?

A

A tenant’s possessory interest created by a lease.

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65
Q

The act or process of developing an opinion of the economic exchange value of the rights inherent in the ownership of property, based on a preponderance of evidence.

A

Appraisal

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66
Q

What is an appraiser?

A

One who is expected to perform valuation services.

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67
Q

What is expansion?

A

Positive economics with increasing or sustained high demand.

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68
Q

What changes to the course of rivers and streams affect property boundaries?

A

Gradual and imperceptible changes; erosion and accretion.

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69
Q

The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate.

A

Going-concern or business value

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70
Q

The active participation in demand by two or more participants for an item in short supply.

A

Competition

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71
Q

Private restrictions, often associated with a residential development or HOA, that limit property rights to protect property values.

A

Covenants, conditions, and restrictions (CC&R’s)

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72
Q

What is an easement by implication?

A

Creation of an easement in which prior use entitles buyer to reasonably assume an easement existed.

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73
Q

What is termination by release?

A

Termination by a signed written agreement.

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74
Q

What is a deed call composed of?

A

A direction and a distance.

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75
Q

What is the Scope of Work Rule of USPAP?

A

Addresses problem identification and the work that will be done by the appraiser to properly address the problem.

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76
Q

How are Storie Index Rating calculated?

A

Percentage ratings for Profile, Texture, Slope, and Other limiting conditions are multiplied together.

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77
Q

What is price?

A

The amount asked for, offered, or paid for a property.

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78
Q

How is rate of return on total investment calculated (after debt service)?

A

Net income after debt service / total investment

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79
Q

What is bracketing?

A

The process by which (1) individual subjective adjustments or ratings are made for each element, (2) objective quantitative adjustments are made if supported by data, (3) overall ratings are applied based on cumulative weight of individual ratings, and (4) a bracketed range allows identification of the likely range that the value should fall within.

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80
Q

Highest and Best Use Analyses are conducted twice (T/F)

A

True, once as if vacant and once as improved.

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81
Q

What is an easement in gross?

A

An easement in which there is no dominant estate, the benefit running instead to a person or entity.

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82
Q

The right to use another’s property for a specific purpose.

A

Affirmative easement

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83
Q

The right to sell, lease, give away, or will property.

A

Disposition

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84
Q

The Economic Cycle:

A

Expansion, decline, recession, recovery

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85
Q

What is assessed value or tax value?

A

A value set on real estate and personal property by a government as a basis for levying taxes.

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86
Q

Interest that accrues on the original principal and the accumulated interest from previous periods.

A

Compound interest.

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87
Q

Negative economics with increasing demand.

A

Recovery

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88
Q

What is demand?

A

The desire and ability to purchase or lease goods and services.

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89
Q

Ways that easements can be created:

A

Express grant, prescription, necessity, implication.

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90
Q

Absolute ownership unencumbered by any interest or state, only subject to the four powers of government.

A

Fee Simple Estate

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91
Q

What is the initial point in the Public Land Survey System?

A

The point where the principal meridian and baseline intersect.

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92
Q

Positive economics with decreasing demand.

A

Decline

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93
Q

The right of government to raise revenue through assessments on valuable goods, products, and rights.

A

Taxation

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94
Q

What is value in use?

A

The value of a specific property to a specific person/firm.

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95
Q

What are standard parallels or correction lines in the Public Land Survey System?

A

Continuous and uninterrupted east-west lines parallel to the equator.

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96
Q

What is Leased Fee Estate?

A

Ownership interest in which possessory interest have been granted to another party in exchange for lease payments.

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97
Q

What is the escrow process?

A

Items necessary to complete the transaction are deposited with the escrow agent, provided with instructions for the required conditions to be met prior to the delivery of the items to the other party.

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98
Q

The bundle of rights.

A

Possession, control, exclusion, enjoyment, disposition.

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99
Q

What type of land survey begins at a specified Point of Beginning and follows a series of deed calls around the perimeter of a property?

A

Metes and Bounds

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100
Q

Partial payment is the reciprocal of _____.

A

Present worth of $1 per period

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101
Q

How many sections are in a township?

A

36

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102
Q

What changes to the course of rivers and streams do not affect property boundaries.

A

Sudden and obvious changes; avulsion

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103
Q

What is termination by prescription?

A

Termination of an easement by preventing the easement holder from use for a statutory period.

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104
Q

How many feet is in a mile?

A

5,280

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105
Q

What are Tax Deferred Exchanges?

A

Allows tax payments to be deferred if proceeds from the sale of a business/investment property are reinvested in another property.

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106
Q

What is change? (Principles of Economic Theory)

A

The result of cause-and-effect relationships among the forces that influence value.

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107
Q

What distance is a link?

A

Chain/100 = 0.66 feet

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108
Q

Right over the use of a property.

A

Control

109
Q

Right to exclude others from the property.

A

Exclusion

110
Q

What is a negative easement?

A

The right to prevent an otherwise lawful activity on another’s property.

111
Q

What is the Principle of Balance?

A

The principle in which real property value is sustained by equilibrium among the interacting elements.

112
Q

The approaches to value:

A

Sales comparison approach, income approach, cost approach.

113
Q

Present worth of $1 is the reciprocal of _____.

A

Amount of $1

114
Q

What is Proposition 13?

A

The People’s Initiative to Limit Property Taxation (1978). Assessments based on the 1976 value or value at acquisition (Base Year Value) increasing at 2% per year, or the current market value, whichever is less.

115
Q

What would be the grade of a soil with a Storie Index Rating of 67%?

A

Good

116
Q

Supply is a function of:

A

Land, labor, capital, and management.

117
Q

What is the best land quality called in the Farmland Mapping and Monitoring service?

A

Prime Farmland

118
Q

What is property?

A

A legal concept encompassing all the interests, rights, and benefits of ownership.

119
Q

What is accretion?

A

Gradual deposition of material that increases the property land area.

120
Q

An easement in which there is no dominant estate, the benefit running instead to a person or entity.

A

Easement in gross.

121
Q

What is termination by estoppel?

A

Termination of an easement by the violation of the mutual terms of the easement.

122
Q

What is the Competency Rule of USPAP?

A

Addresses requirements as to an appraiser’s knowledge and experience.

123
Q

What is the format of a township designation?

A

“Township” tier, “Range” range. ex: Township 4 North, Range 2 West.

124
Q

What is the Williamson Act?

A

AKA the California Land Conservation Act of 1965.
Local governments enter into contracts (10 or 20 year terms; automatically renewed annually) with private landowners to protect agricultural property from non-agricultural uses. Landowners receive property tax assessments based on agricultural production value, usually reducing taxes.

125
Q

What would be the grade of a soil with a Storie Index Rating of 38%?

A

Poor

126
Q

The right of government to assume ownership of a property when the owner dies without a will or ascertainable heirs.

A

Escheat

127
Q

What is adverse possession?

A

A method of acquiring title to someone else’s real property.

128
Q

The specific value of an investment to a particular investor based on individual investment requirements.

A

Investment value

129
Q

What is the Principle of Substitution?

A

The principle in which, among similar commodities/goods/services, the one with the lowest price attracts the greatest demand and distribution.

130
Q

How many feet are in a rod?

A

16.5

131
Q

What is public interest value?

A

A value concept in which governmental agencies specify a highest and best use of public lands for purchases of preservation and conservation.

132
Q

The rules of USPAP:

A

Ethics Rule, Record Keeping Rule, Competency Rule, Scope of Work Rule, Jurisdictional Exception Rule.

133
Q

The present value of a series of future $1
payments for a given period of time
discounted at a given rate of interest.

A

Present worth of $1 per period; Inwood coefficient/factor

134
Q

The value of an asset as shown on books of account; usually historical cost less a reserve for depreciation.

A

Book value

135
Q

What is recovery?

A

Negative economics with increasing demand.

136
Q

What are the classifications of the Land Capability Classification System?

A

Class, Subclass, and Unit

137
Q

What is Net Operating Income (NOI)?

A

Gross income - gross expenses

138
Q

What are principal meridians in the Public Land Survey System?

A

North-south lines by which specific areas of land are defined in relation to.

139
Q

Where are correction lots located within a township?

A

Along the north and/or west edges of the correction sections.

140
Q

A value set on real estate and personal property by a government as a basis for levying taxes.

A

Assessed value or tax value

141
Q

The four criteria of highest and best use:

A

Legally permissible, physically possible, financially feasible, maximally productive.

142
Q

What is insurable value?

A

The value of an asset that is covered by an insurance policy.

143
Q

What are meridians in the Public Land Survey System?

A

Vertical lines that converge at the north and south poles.

144
Q

Personal property that is attached to land or a building and is regarded as an irremovable part of the real property. Regarded in law as a part of the real estate.

A

Fixture

145
Q

The fraction of $1 that must be deposited
periodically to grow to $1 in a given
period of time, including the
accumulation of interest at a given rate.

A

Sinking fund factor; Amortization rate

146
Q

The result of cause-and-effect relationships among the forces that influence value. (Principles of Economic Theory)

A

Change

147
Q

What is recession?

A

Negative economics with decreasing or sustained low demand.

148
Q

Personal property that is attached by a tenant to a rented space or building for use in conducting a business, removed by tenant at the end of the lease term.

A

Trade fixtures

149
Q

Which Classes in the Land Capability Classification System are considered arable?

A

1-4

150
Q

What would be the grade of a soil with a Storie Index Rating of 8%?

A

Non-agricultural

151
Q

Termination after an explicitly allotted time period.

A

Termination by expiration.

152
Q

What is Life Estate pur autre vie?

A

An estate held only for the duration of a specified person’s life, other than the possessor.

153
Q

How is the Farmland Mapping and Monitoring program funded?

A

By Williamson Act cancellation fees.

154
Q

What is utility?

A

The ability to satisfy a human want, need, or desire.

155
Q

How is rate of return on total investment calculated (before debt service)?

A

Net Operating Income (NOI) / initial investment

156
Q

The value of an asset that is covered by an insurance policy.

A

Insurable value

157
Q

Above what rating is considered “fair” in the Storie Index Rating?

A

40%

158
Q

What are base lines in the Public Land Survey System?

A

East-west lines by which specific areas of land are defined in relation to.

159
Q

A method of acquiring title to someone else’s real property.

A

Adverse possesion

160
Q

Where in a township are correction sections located?

A

The sections along the north and west edges of the township.

161
Q

To be considered Prime Farmland or Farmland of Statewide Importance in the Farmland Mapping and Monitoring service, land must meet what criteria?

A

Land use: used for irrigated agricultural production at some time in the four years prior to map update.
Soil: must meet the physical and chemical criteria as determined by the ESDA Natural Resources Conservation Service.

162
Q

What is the second best land quality called in the Farmland Mapping and Monitoring service?

A

Farmland of Statewide Importance

163
Q

The purpose of _________ is to communicate the appraisal findings to a client and any other intended users of the report.

A

Appraisal report.

164
Q

The increase in value due to combining two or more parcels to allow a higher use.

A

Plottage value

165
Q

What is an Express Grant?

A

An explicit conveyance of an easement from the Grantor to the Grantee.

166
Q

An estate held only for the duration of a specified person’s life, other than the possessor.

A

Life Estate pur autre vie

167
Q

The perception that value is created by expectation of benefits to be derived in the future.

A

Anticipation

168
Q

What is a range in the Public Land Survey System?

A

A row of townships extending north to south.

169
Q

The creation of an easement in a way akin to adverse possession.

A

Prescription

170
Q

Charge against property in which the property is security for the payment of debt.

A

Lien

171
Q

An easement that has both a dominant and servient estate.

A

Easement appurtenant

172
Q

What is decline?

A

Positive economics with decreasing demand.

173
Q

The adjustment sequence of the Sales Comparison Approach:

A
  1. Property rights conveyed
  2. Financing terms
  3. Conditions of sale
  4. Change in market conditions
  5. Everything else
174
Q

Typically, lenders want to see a debt coverage ratio of at least _____.

A

1.25

175
Q

The present value of $1 to be collected in
the future, discounted for a given period
of time at a given rate of interest.

A

Present worth of $1; Reversion factor

176
Q

What are Rancho Surveys?

A

Mostly old fashioned metes and bounds descriptions, validated by the United States during/after the acquisition of California from Mexico.

177
Q

The value of a specific property to a specific person/firm.

A

Value in use

178
Q

Factors of Value:

A

Utility, Scarcity, Desirability, Effective Purchasing Power.

179
Q

Ownership interest in which possessory interest have been granted to another party in exchange for lease payments.

A

Leased Fee Estate

180
Q

What type of land survey is found only in urban or rural subdivisions?

A

Lot & Block

181
Q

Restrictions on property rights intended to preserve the status quo of the property.

A

Conservation easements.

182
Q

What would be the grade of a soil with a Storie Index Rating of 82%

A

Excellent

183
Q

What is cost?

A

The total dollar expenditure to develop an improvement; the amount required to create, produce, or obtain a property.

184
Q

An increase in price or value of a property or commodity resulting from an excess of demand over supply or other factors.

A

Appreciation

185
Q

What is the preferred punctuation for writing Rectangular Survey Legal Descriptions?

A

-Use “and” to separate tracts within the same section.
-Use “,” to separate different sections, to separate sections from townships and ranges, and to separate the final township and range from the Base & Meridian.
-Use “;” to separate different townships.

186
Q

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale.

A

Market value

187
Q

What is salvage value?

A

An expected price for all or part of a structure or equipment to be moved and used elsewhere for a different purpose, or at a forecast date of retirement.

188
Q

What are guide meridians in the Public Land Survey System?

A

Discontinuous north-south lines.

189
Q

An expected price for all or part of a structure or equipment to be moved and used elsewhere for a different purpose, or at a forecast date of retirement.

A

Salvage value

190
Q

What is intellectual property?

A

Creations of the mind. A form of intangible property.

191
Q

What is Class in the Land Capability Classification System?

A

Expresses the increasing degree of hazard or limitation, from I to VIII (lowest to highest degree of hazard).

192
Q

What is Unique Farmland in Farmland Mapping and Monitoring?

A

Farmland of lesser quality soils used for the production of the state’s leading agricultural crops.

193
Q

What is remainder value?

A

Value of the remaining property after a partial taking.

194
Q

Positive economics with increasing or sustained high demand.

A

Expansion

195
Q

Conservation easements (are/are not) generally subject to the Doctrine of Merger and (can/cannot) be bought out by the fee holder.

A

Are not; cannot

196
Q

What is a tier in the Public Land Survey System?

A

A row of townships extending east to west.

197
Q

What is depreciated value?

A

Cost less a single form of depreciation, or replacement cost less depreciation.

198
Q

What is an easement appurtenant?

A

An easement that has both a dominant and servient estate.

199
Q

What is Scrivener’s Error?

A

When someone inaccurately transcribed deed calls and omitted, repeated, or mistyped some language.

200
Q

An explicit conveyance of an easement from the Grantor to the Grantee.

A

Express Grant.

201
Q

What is the preferred order for writing Rectangular Survey Legal Descriptions?

A
  1. Begin with lowest numbered range.
  2. Within each range, begin with lowest numbered township/tier.
  3. For properties both north and south of Base Line or east and west of the Principal Meridian, start to the NE of Initial Point and move counter clockwise.
  4. Within each township, begin with lowest numbered section.
  5. Within each section, and within each subsection of a quarter, start in the NE quarter and move counter clockwise, giving priority to the largest contiguous combination.
202
Q

What is the Ethics Rule of USPAP?

A

Addresses the conduct of appraisers, the management of appraisal practical, and the confidentiality obligations of appraisers.

203
Q

What is stagflation?

A

A condition of slow economic growth, relatively high unemployment, and inflation.

204
Q

An erosion of the purchasing power of currency.

A

Inflation

205
Q

Covenants, conditions & restrictions (CC&R’s), Conservation easements, limits on surface access to exploit mineral rights, and prohibitions on a particular use are examples of _______.

A

Private restrictions.

206
Q

How is rate of return on equity calculated (after debt service)?

A

Net income after debt service / equity

207
Q

Termination of an easement by means of acquiring ownership of the other estate.

A

Termination by merger.

208
Q

Termination of an easement by preventing the easement holder from use for a statutory period.

A

Termination by prescription.

209
Q

An interest or right in real property that may decrease or increase the value of the fee estate but does not prevent conveyance by the owner. Generally a permanent reduction in owner’s property rights.

A

Encumberance

210
Q

What is Unit in the Land Capability Classification System?

A

Expresses the kind of secondary limitation or hazard.

211
Q

What are parallels in the Public Land Survey System?

A

The equator and all horizonal lines north and south of it.

212
Q

The right of government to take private property for public use upon payment of just compensation.

A

Eminent domain

213
Q

The most probably price that a specified interest in a real property is like to bring under extreme compulsion to sell with limited marketing effort and time allowed, among other conditions.

A

Liquidation value

214
Q

What is real property?

A

The interests, benefits, and rights inherent to the ownership of real estate.

215
Q

What is an appraisal?

A

The act or process of developing an opinion of the economic exchange value of the rights inherent in the ownership of property, based on a preponderance of evidence.

216
Q

Present or anticipated supply relative to demand.

A

Scarcity

217
Q

What is going-concern or business value?

A

The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate.

218
Q

Above what rating is considered “excellent” in the Storie Index Rating?

A

80%

219
Q

An estate held only for the duration of a specified person’s life, usually the possessor’s.

A

Life Estate

220
Q

What is Effective Purchasing Power?

A

Ability to participate in a market; monetary ability to fulfill a desire.

221
Q

What are the major land designations of Farmland Mapping and Monitoring?

A

Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, and Grazing Land.

222
Q

What is anticipation?

A

The perception that value is created by expectation of benefits to be derived in the future.

223
Q

What is the approximate size of a township?

A

6 miles by 6 miles

224
Q

What is book value?

A

The value of an asset as shown on books of account; usually historical cost less a reserve for depreciation.

225
Q

What is termination by merger?

A

Termination of an easement by means of acquiring ownership of the other estate.

226
Q

What is the Record Keeping Rule of USPAP?

A

Establishes workfile requirements.

227
Q

A potential purchaser’s wish for an item to satisfy human needs or wants beyond essential life-support needs.

A

Desirability

228
Q

The right to use the property in any legal manner.

A

Enjoyment

229
Q

What is a fixture?

A

Personal property that is attached to land or a building and is regarded as an irremovable part of the real property. Regarded in law as part of the real estate.

230
Q

The principle in which real property value is sustained by equilibrium among the interacting elements.

A

Balance

231
Q

The level of periodic payment required
for both principal and interest on a loan
of $1 for a given period of time with
interest at a given rate.

A

Partial payment; Installment to amortize $1; Annuity worth $1 today

232
Q

Above what rating is considered “poor” in the Storie Index Rating?

A

20%

233
Q

The right of government to protect public safety, health, morals, and general welfare.

A

Police power

234
Q

What is the definition of the appraisal problem?

A

The stage of an appraisal project in which clients, intended use and users, the property identification, purpose and function of the appraisal, date of value opinion, completion date, fees/expenses are determined.

235
Q

How is the debt coverage ratio calculated?

A

Net Operating Income (NOI) / debt service

236
Q

An opinion of value that is likely to have applied as of a specific historic date.

A

Retrospective value

237
Q

What is an encumberance?

A

An interest or right in real property that may decrease or increase the value of the fee estate but does not prevent conveyance by the owner. Generally a permanent reduction in owner’s property rights.

238
Q

Termination of an easement by the violation of the mutual terms of the easement.

A

Termination by estoppel

239
Q

A tenant’s possessory interest created by a lease.

A

Leasehold Estate

240
Q

The steps in the Sales Comparison Approach analysis:

A
  1. Identify important characteristics
  2. Research the market for comparable data
  3. Develop relative elements and units of comparison
  4. Compare sale properties to subject property and adjust for dissimilarities
  5. Reconcile value indications into final value opinion
241
Q

What is a Life Estate?

A

An estate held only for the duration of a specified person’s life, usually the possessor’s.

242
Q

Termination of an easement due to non-use and an intent to abandon.

A

Termination by abandonment.

243
Q

An interest in real property that conveys use but does not convey ownership.

A

An easement

244
Q

If not enrolled in the Williamson Act, a property falls under jurisdiction of _______.

A

Proposition 13

245
Q

The monetary worth of a property, good, or service to buyers and sellers at a given time.

A

Value

246
Q

What are elements of comparison?

A

Property of transaction characteristics that might influence price.

247
Q

What is competition?

A

The active participation in demand by two or more participants for an item in short supply.

248
Q

The stages of an appraisal project:

A
  1. Define the appraisal problem
  2. Data collection
  3. Analyze highest and best use
  4. Application of approaches to value
  5. Reconciliation of value indications
  6. Final value opinion
  7. Report appraisal results
249
Q

Cost less a single form of depreciation, or replacement cost less depreciation.

A

Depreciated value

250
Q

How many square feet in an acre?

A

43,560

251
Q

What is market value?

A

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale.

252
Q

The amount to which $1 will grow in a given period of time including the accumulation of interest at a given rate.

A

Amount of $1; Future worth of $1

253
Q

The amount to which a series of $1
investments will grow in a given number
of periods with interest at a given rate.

A

Amount of $1 per period; Future worth of $1 per period

254
Q

Ways easements can be terminated:

A

Merger, prescription, estoppel, abandonment, destruction of servient estate, release, expiration.

255
Q

A condition of slow economic growth, relatively high unemployment, and inflation.

A

Stagflation

256
Q

What are Swamp and Overflowed Land Surveys?

A

Surveys of land that was originally swampy or tidal (therefore not conducive to cultivation), that was left to the domain of the state to be surveyed on behalf of the person seeking to obtain title.

257
Q

What is plottage value?

A

The increase in value due to combining two or more parcels to allow a higher use.

258
Q

How is Farmland of Local Importance determined in Farmland Mapping and Monitoring?

A

County board of supervisors and local advisory committees.

259
Q

How do you calculate Storie Tract Ratings with percentage weights?

A

The sum of the products of the percentage of acreages and Index ratings of the soil types of the property.

260
Q

The four powers of government.

A

Taxation, eminent domain, police power, escheat.

261
Q

An Express Grant must be in signed writing to endure longer than ______.

A

One year

262
Q

The total dollar expenditure to develop an improvement; the amount required to create, produce, or obtain a property.

A

Cost

263
Q

What is Subclass in the Land Capability Classification System?

A

Expresses the kind of major limitation or hazard.
e = erosion
w = wetness
s = soil limitation
c = climate

264
Q

The stage of an appraisal project in which clients, intended use and users, the property identification, purpose and function of the appraisal, date of value opinion, completion date, fees/expenses are determined.

A

Definition of the appraisal problem.

265
Q

What is termination by abandonment?

A

Termination of an easement due to non-use and an intent to abandon.

266
Q

Creation of an easement in which prior use entitles buyer to reasonably assume an easement existed.

A

Easement by implication.

267
Q

Interest that accrues only on original principal.

A

Simple interest

268
Q

Negative economics with decreasing or sustained low demand.

A

Recession

Farm & Rural Real Estate Appraisal (2 decks)

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