Module 2 Quiz Flashcards
The tenant of a retail building operates a baking facility and has installed commercial ovens for baking bread. The ovens are large and heavy and a portion of the back wall of the building had to be removed for the ovens to
be installed. The appraiser is performing an appraisal of the real estate interest only. Should the ovens be included in the appraiser’s valuation?
A) The appraiser should not include the ovens because they are trade fixtures
B) The appraiser should not include the ovens because they add no value in most markets.
C) The appraiser should include the ovens in the appraisal because they are worth a lot of money and will add a lot to the property value.
D) The appraiser should include the ovens in the appraisal as part of the real estate since it would be difficult to remove them.
A) The appraiser should not include the ovens because they are trade fixtures
An appraiser has observed a portable hot tub that is permanently enclosed in a deck and has underground plumbing connected to the tub. What category should the appraiser use for the hot tub that best identifies the property type? A) real property B) real estate C) fixture D) personal property
C) fixture
The general characteristics of land are best identified as:
A) land, labor, capital, and entrepreneurialism.
B) legal, geographic and environmental, economic, and social.
C) leasehold, leased fee, and fee simple.
D) immobile, durable, finite, and useful.
D) immobile, durable, finite, and useful.
In an appraisal assignment, how should photographic printing equipment owned and used by a photo business renting space in a mall be identified for valuation purposes? A) real property B) fixture C) personal property D) trade fixture
D) trade fixture
Appurtenant means: A) associated. B) adjacent. C) attached. D) allowed.
C) attached.
What characteristic makes land unique?
A) no two parcels can occupy the same space on the face of the earth
B) no two parcels have the same tax levies
C) no two parcels have the same owners
D) no two parcels have the same soil composition
Land
A) no two parcels can occupy the same space on the face of the earth
Why do we distinguish real property, fixtures, and trade fixtures in a real property appraisal?
A) the secondary market requires that they be excluded
B) because their inclusion or exclusion could affect the value conclusion
C) because some trade fixtures could be worth more than the real property
D) because the appraisal standards suggest that they be identified
B) because their inclusion or exclusion could affect the value conclusion
Corn in a cornfield is an example of a(n): A) emblement. B) fixture. C) appurtenance. D) trade fixture.
A) emblement.
A property owner discovered during a loan refinance that a previously unknown public easement may prevent the owner from building an addition to the residence. The owner believes this will have an impact on any future sale of the property. What real right property is affected in this situation? A) right to improve B) right to transfer C) right to mortgage D) right to possession
A) right to improve
The right to occupy your home is an example of \_\_\_\_\_\_\_, which is a right in the bundle of rights. A) transfer B) possession C) improvement D) mortgage
B) possession
Littoral and riparian rights refer to \_\_\_\_\_\_\_\_ rights. A) tenants B) water C) livestock D) surface
B) water
Which of the following is NOT a characteristic used to identify a fixture? A) agreement B) adaptation C) attachment D) association
D) association
Write a number on the line opposite each item below to indicate whether the item is best described as 1. Real estate 2. Real property 3. Personal property 4. Fixture 5. Trade fixture
Note. Permanently attached fixtures are also real estate. Choose “fixture” rather than “real estate” if the test of fixtures applies to the personal property item. Trade fixtures are also personal property, but choose the best answer that fits the description.
- Photographic printing equipment owned and used by a one-hour photo business that rents space in a mall
- Chain link fence
- An estate
- Portable dishwasher
- Condominium
- Swimming pool in the ground
- Swimming pool above the ground
- Air-handling systems and filters owned and installed by a tenant in leased space of an industrial park
- Room air conditioner permanently mounted in a wall opening
- Right to occupy
- Portable hot tub permanently enclosed in a deck with underground plumbing
- Shrubbery
Key:
- Real estate
- Real property
- Personal property
- Fixture
- Trade fixture
Answers:
5 - Photographic printing equipment owned and used by a one-hour photo business that rents space in a mall
1 - Chain link fence
2 - An estate
3 - Portable dishwasher
2 - Condominium
1 - Swimming pool in the ground
3 - Swimming pool above the ground
5 - Air-handling systems and filters owned and installed by a tenant in leased space of an industrial park
4 - Room air conditioner permanently mounted in a wall opening
2 - Right to occupy
4 - Portable hot tub permanently enclosed in a deck with underground plumbing
1 - Shrubbery
What are the significant characteristics of land?
- immobile and unique
- durable (long-term) but finite
- economic concept and valued as a commodity by some people
- useful
