Test Flashcards
The “price” of money is
interest rate
A lot measures 248.4 X 378.9. How many acres is that?
2.16
Which system of legal descriptions uses townships?
Rectangular Survey
You apply for a mortgage and the lender will allow you to spend up to 28% of your annual income for housing costs. These housing costs will include your mortgage, property taxes, and insurance. Your income is $1,472 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?
893.01??
In USPAP, the word “Ethics” is formally defined
Nowhere
An appraisal is defined as “The act or process of developing an ________ of _______.
Opinion, value
“A written, legal instrument that conveys an estate or interest in real property when it is executed and delivered” is the definition of a
Deed
The price of a good varies _______ with demand.
Directly
All of the following would be considered to be economic influences on value EXCEPT
Zoning
Which of the following is NOT a characteristic of a good (i.e., an effective) market?
Heterogeneous product
Which of the following situations would not normally require an appraisal?
Life insurance
Who retains final authority over revisions to USPAP?
Appraisal Standards Board
Which principle has the strongest application in the valuation of income producing properties?
Anticipation
Here are all the sales in your area in the last 4 months. They sold for: $178,500, $166,000, $172,750, $182,000, $168,000, $174,000, $176,000, $184,000, $170,000, $175,000, $172,000, $181,500. What is the mean sale price?
174979
“An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users” is the definition of a(n) __________ market.
Sellers
The supply of money in the U.S. is regulated by
The Federal Reserve System
The process of condemnation is undertaken as a result of the government’s power of
Eminent domain
Real property appraisal reporting requirements are set forth in Standard ___ of the Uniform Standards of Professional Appraisal Practice.
2? STANDARD 1 establishes requirements for development of a real property appraisal, and STANDARD 2 addresses the reporting of a real property appraisal.
“A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill” is the definition of ____________ value.
Intangible
“The earth’s surface, both land and water, and anything that is attached to it whether by the course of nature or human hands” is the definition of
Real Estate
Which entity is responsible for monitoring state appraiser licensing and certification agencies?
Appraisal Subcommittee
8.8% is the same as
0.088
A lot contains .56 acres. It sells for $35,000. How much did it sell for per square foot?
1.43
A property is owned as a tenancy in severalty. How many owners are there?
1
All of the following would typically be considered to be personal property EXCEPT
Wall to wall carpeting
The four agents of production are Land, ________, Capital, and _____________.
Labor, Entrepreneurial Coordination
“A form of conveyance in which any interest the grantor possesses in the property described in the deed is conveyed to the grantee without warranty of title” is the definition of a ________________ deed.
Quitclaim
The appraisal standards and qualification criteria established by The Appraisal Foundation achieve legal authority by adoption, citation or implementation by
Government agencies
USPAP defines _________ as the amount asked, offered, or paid for a property.
Price
“A firm agreement to perform an act, refrain from acting or make a payment or delivery” is the definition of
Promise
The four elements of value are desire, _________, scarcity, and __________.
Utility, effective purchasing power
“The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment” is the definition of
Microeconomics
Real estate includes all of the following EXCEPT
Property rights
The principle of supply and demand states that the price of a commodity, good, or service varies __________, but not necessarily _____________, with demand.
Directly, proportionately
Real estate is unique as an economic good in that it is
Immovable
The Conduct Section of the ETHICS RULE states, in part, “An appraiser must perform assignments with:
Impartiality, objectivity, and independence
A chain contains _______ feet
66
Which of the following is a guaranteed loan?
VA
“The party or parties who engage, by employment or contract, an appraiser in a specific assignment” is the definition of
Client
“A study of the cost-benefit relationship of an economic endeavor” is the definition of
Feasibility analysis
The median price of homes sold in your county 9 months ago was $217,400. Prices have been increasing at the rate of 8% per year. What is the median price of homes today?
230444
Land is a long lasting asset, and it has a long economic life compared to other assets. What characteristic of land does this refer to?
Durability
“A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices” is the definition of a(n) _________ market.
Depressed
The stated purpose of USPAP is to promote and maintain a high level of ____________
Public trust
The four components of the Real Property Appraiser Qualification Criteria are:
Qualifying education, examination, experience, continuing education
Which would NOT be considered factors in supply analysis?
Employment rates
The strongest form of deed is the __________ deed.
Warranty
The principle that studies the relationships between participants in the marketplace, such as buyers and sellers or landlords and tenants, is the principle of
Competition
In the 1970s, who developed uniform rules for mortgage underwriting?
Fannie Mae and Freddie Mac
“A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be sold to landowners in another location” are called ___________________ rights.
Transferable Development
“The right held by the tenant to use and occupy real estate for a stated term and under the conditions specified in the lease” is the definition of
Leasehold estate
The primary operators in the secondary mortgage market include all of the following EXCEPT
FHA
“The sum of a series of values divided by the number of values in the group” is the definition of
Mean
Which two of the following would be private restrictions on property rights?
Deed restriction and mechanic’s lien
Public Limitations on private property rights include all of the following EXCEPT
CC&R’s
“In appraisal, the concept that a higher-priced property will be worth less in a lower-priced neighborhood than it would in a neighborhood of comparable properties” is the definition of the principle of
Regression
An easement for a railroad or pipeline would an example of a(n)
Easement in Gross
You bought a property for $264,500, 2 years ago. Values increased in that area by 5% the first year and 7% the second year. How much is your property worth today?
297166
“A manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer” is the definition of
Acceptance
Which federal agency is charged with monitoring coastal habitats?
NOAA
USPAP requires an appraiser to be
Objective
“A debt secured by real property with an interest rate that may move up or down following a specified schedule or in accordance with the movements of a standard or index to which the interest rate is tied” is the definition of a(n) ______________ mortgage.
Adjustable rate
What is the median of these numbers: 17, 12, 54, 36, 71, 28, 31, 55?
33.5
The oldest system of legal descriptions is
Metes and Bounds
A homeowner fears the construction of a factory nearby will decrease the value of her property. This illustrates the principle of
Externalities
The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT
Fannie Mae
The 2018 Real Property Appraiser Qualification Criteria specifies college-level course requirements for __________ classifications.
Certified Residential and Certified Genera
The web site with the largest amount of demographic information is
Census.gov
As part of the requirement for continuing education, licensed and certified appraisers must complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s).
every 2
Under the current AQB education criteria, an applicant for Appraiser Trainee must have completed ___ creditable class hours as specified in the required Core Curriculum Appendix.
75
You want to buy a house for $216,500. You can get a loan for 90% of value. You will also have to pay 1.5 points on the loan. How much will you have to put down at the closing?
24572.75
_________ is a computerized mapping system for encoding, retrieving, analyzing and presenting geographic or spatial data.
GIS
“The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms” is the definition of
Functional utility
What is the name of the interest rate charged by the Fed when it makes loans to banks?
Discount Rate
The intent of USPAP is to ____________ a high level of __________ in professional appraisal practice.
Promote and maintain, public trust
To whom is the Fed accountable?
Congress
The Management Section of the ETHICS RULE states, in part, “An appraiser must _______ a fee or commission, or gave a thing of value in connection with the procurement of an assignment.”
Disclose that he or she paid
“A deed that conveys to the grantee title to the property free and clear of all encumbrances, except those specifically set forth in the document” is the definition of a _______________ deed.
Warranty
A leasehold interest belongs to the
Tenant
You purchased a property two years ago for $190,000. Property values in the area have increased an average of 3% annually since you purchased it. What is the current value of the property?
201571
“For real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property” is the definition of
License
“A lease that provides for specified changes in the amount of rent at one or more points during the lease term” is called a(n) ____________ lease.
Graduated rental
“The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires” is the definition of
Leased fee interest
What type of property ownership is characterized by purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit?
Cooperative
A rod contains ______ feet.
16.5
“A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of
Partnership
Acceptance may occur as
Either an express act or an implied act
USPAP includes performance standards for the appraisal of
Real property, personal property, business/intangible property
An appraisal is best described as
An opinion of value
Which is NOT a characteristic of tenancy in common?
There is a right of survivorship
A property has a first mortgage of $100,000, a second mortgage of $20,000, and a third mortgage of $10,000. It is foreclosed and sold for $125,000. The holder of the third mortgage gets________ and the holder of the second mortgage receives _________.
$5,000, $20,000
Which of the following would NOT be considered a governmental influence on value?
Wage levels
In analyzing a real estate contract you should be able to find all of the following items EXCEPT
Amount of property taxes
Here are all the sales in your area in the last 4 months. They sold for: $178,500, $166,000, $172,750, $182,000, $168,000, $174,000, $176,000, $184,000, $170,000, $175,000, $172,000, $181,500. What is the median sale price?
174500
All of the following could lead to a non-arms-length transaction EXCEPT
Knowledgeable buyer and seller
“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of
District
Which of these factors would result in a violation of USPAP if an appraiser based his/her appraisal fee on it?
The appraiser’s value opinion
“The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc.” is the definition of ___________ rights.
Subsurface
The distances that a boundary runs at a prescribed angle is called
Bounds
The _______ maintains a national registry of State certified and licensed appraisers who are eligible to perform appraisals in federally related transactions.
Appraisal Subcommittee
