Anything that is capable of being owned and gained lawfully
Property
The interests, benefits and right inherent in the ownership of real estate
A. real property
An ownership concept describing all the legal rights that attach to the ownership of real property
D. bundle of rights
An identified parcel or tract of land
D. real estate
Real property to a reasonable height
A. airspace
The rights to underground, natural resources such as minerals, oil, gas
C. subsurface rights
Identifiable tangible objects that are considered by the general public as being personal
A. personal property
Another term for personal property
C. chattel
Personal property that has become affixed to real estate
B. fixture
An item of personal property used to conduct business
C. transferability
General term of various legal rights, which attach to certain types of information, ideas, or other intangibles
B. intellectual property
A limitation on the use of real property and may be placed by a private owner, a developer, or the government
A. restriction
Power of the state to enact laws within constitutional limits to promote the order, safety, health, morals, and general welfare of our society
Police Power
The right of the government to take private property from an owner, for the public good, paying fair market value
eminent domain
A legal process in which property reverts to the state because the deceased left no will and has no legal heirs
D. escheat
Recorded deed restrictions that run with the land, usually initiated by the original subdivider
D. CC&Rs (Conditions, convenant & restrictions)
The monetary relationship between properties and those who buy, sell, or use those properties
Value
The desire to buy or obtain a commodity
demand
The ability to transfer ownership of an item from one person or entity to another
transferability
The most probably price property should bring in a competitive and open market under all conditions requisite to a fair sale
market value
Property is best defined as:
D. anything capable of being owned and gained lawfully
Which os these is considered real property
A. airspace
Which of the following is not one of the tests of a fixture?
A. time of attachment
Tenant Bob installs a ceiling fan, Bob informs landlord Pat that he will re-install the old fixture when he moves. Of the five tests of a fixture, this is an example of:
B. intention
In legal terms, ____ is a general term for various legal rights, which attach to certain types of information, ideas, or other intangibles
B. intellectual property
The primary difference between condemnation through exercise of power of eminent domain and condemnation through the exercise of police power is :
C. there is no payment involved in condemnation under police power
In most cases, when there is a conflict between a public (governmental) restriction on a property and a private deed restriction, which one must be adhered to?
B. the one that is most restrictive
Privately owned real property in most states is subject to real estate taxation. Exempt properties may include
D. all of the above
For an appraiser, value is:
B. not a fact, it is a qualified opinion
Price is the amount asked, offered, or paid for a property. Once stated, price:
C. is a fact, whether it is publicly disclosed or retained inprivate
The value of real property is best measured by:
C. demand, utility, scarcity, and transferability
The ultimate test of functional utility is:
A. marketability
According to the USPAP, the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale is known as:
D. market value
A sale that is characterized an an arm's length transaction is a sale:
A. in which all involved parties act in their own self-interest
The process of estimating market value for a real property as of a specific time
D. valuation
The use, from among reasonably probably and adequately supported alternative uses, that is physically possible, legally permitted, economically feasible, and maximally productive
highest and best use or principle of highest and best use
A short-term and temporary use of a property until it is ready for a more productive highest and best use
interim use
Requires that land and improvements be appraised on the basis of the same use
A. principle of consistent use
States that market value is affected by the intersection of supply and demand forces in the market as of the appraisal date
principle of supply and demand
States that it is the future, not the past, which is of prime importance in estimating value
a. principle of change
b. four agents of production
c. decline
d. obsolescence
The first phase of teh life cycle, which consists of initial construction of improvements on vacant land
development
Delayed repairs and deterioration of building generally mark the third phase in the life cycle of a neighborhood
decline
The depreciation of an asset due to ordinary usage
Wear and Tear
The fourth and final phase in the life cycle of a neighborhood that occurs through the demolition, relocation, or major renovation of existing buildings
revitalization
States that maximum value results when properties in a neighborhood are relatively similar in size, style, quality, use and/or type
Principle of conformity
States that highest-valued properties tend to suffer when placed in close proximity with lower-valued properties
Principle of regression
Computer software programs that analyze data using automated systems, such as regression analysis and/or so-called artificial intelligence
C. automated valuation models
States that the worth of a lesser-valued residence tends to be enhanced by association with highest-valued residences in the same area
principle of progression
States that real estate values are affected by supply and demand because of competition
Principle of competition
Calculates the worth of a particular component in terms of its contribution to the value of the whole property
Principle of contribution
Method of adjusting comparable sales in which two comparable properties with one differing feature are used to estimate an amount of adjustment for that feature
matched pair analysis
The income generated by a project after the four agents of production have been paid
Surplus productivity
Labor, management, capital, and land
four agents of production
Recognizes competing investments, usually in different industries, that may have a greater return
Principle of opportunity cost
Highest and best use can best be described as the use that will
D. result in the maximum return on investment
The principle of conssitent use affirms that:
C. improvements are not taken into consideration
Which of the following statements is correct?
a. if supply is high and demand is high, then value tends to be high
b. if supply is low and demand is high, then value tends to be high
c. if supply and demand are in equilibrium, then value tends to be high
d. if supply is high and demand is low, then value tends to be high
The principle of supply and demand must include an anlysis of:
D. all of the above
Reasonably, a buyer will not pay more for a particular property than the cost of buying a similar property. This is the underlying basis of which principle?
C. substitution
The principle of anticipation is easiest to measure int he case of
A. income-producting property
What are the four stages of the heighborhood life cycle?
D. development, stability, decline, and revitalization
Same purchased adjacent lots in a suburban area twhere the typical house is 3-brdroom/2-bath, under 2,000 square feet. Sam intends to combine the lots and build a 7 bedroom/5 bath, 6,000 square-foot Spanish-style mansion, which principle of valuation is Sam disregarding?
A. progression
The principle of ___ states that the worth of a lesser-valued residence tends to be enhanced by association with higher-valued residences in the same area
A. progression
Typically, the principle of competition follows 3 steps. Which of the following is not one of the tree steps?
C. competition decreases profits
Ted and Gayle bought a cabin in the mountains for $145,000. They repaired the furnace, redecorated the interior, and repainted the exterior. All of this work totally just over $9,000. When the couple tried to resell the cabin a few months later, their best offer was $148,500. Which principle of valuation does this scenario exemplify?
A. contribution
Overall, the principle of contribution emphasezes that cost:
B. is not necessarily equal to value
The principle of increasing and decreasing returns can best be applied when there is
C. an over-improvement on a parcel of land
The income generated by a project after the four agents of production have been paid is known as
C. surplus productivity
Joe is presented with Investment A and Investmen B, both very attractive. He can only afford to invest in one and chooses Investment B. One year later, he learns that Investment A yielded 80% more profit than the investment he chose. Joe is a victim of
C. opportunity cost
The bundle of rights consists of all legal rights that are attached to the ownership of real property. These include the right to _____ the property
D. all of the above
Which type of estate represents the most complete form of ownership?
B. fee simple estate and estate in fee
A property owner may impose qualifications, conditions, or restrictions when transferring title to property. If a seller imposes qualifications or conditions that the buyer must do or not do, this is known as a(n):
B. fee simple qualified estate
Which of the following is a leasehold estate?
B. estate for years
A month-to-month tenancy is typically an:
B. estate from period to period
A partial interest is best described as an interest in real estate that represents:
B. less than the fee simple estate
When property is owned by two or more persons or entities at the same time, it is known as concurrent ownership, or co-ownership. Which of the following is not a type of concurrent ownership?
B. tenancy at sufferance
An uncle left his nephew 2/3 interest and left his nephew's wife 1/3 interest i real property jointly and without the right of survivorship. The couple will assume title to an estate that is classified as
C. tenancy in common
The words time, title, interest, and possession are associated with:
B. survivorship
As used in real estate law, the term tenancy is best ddescribed as:
D. a mode or method of holding title to real property by a lessee or owner
All of the following are classifications of a lease, except:
A. amount of payment
The owner of a condominium has a title to the unit and:
D. both an undivided interest in the common areas and pays property taxes for his or her own unit
In an undivided interest, the land itself is not divided--just the ownership. The buyer receives an undivided interest in a parcel of land as a____ with all the other owners.
D. tenant in common
What is the commonality between mobile homes and manufactured homes?
C. both are factory built
Time-share properties are primarily designed for buyers who want:
C. vacation property
Ownership concept describing all the legal rights that attach to the ownership of real property
A. bundle of rights
Ownership interest or claim a person has in real property
B. estate
An estate of indefinite duration and can be sold or inherited
B. freehold estate
Tenant's interest in the leased property during the term of the lease
C. leasehold estate
The most complete form of ownership
B. estate in fee
Limited in duration to the life of its owner or the life of another designated person
C. life estate
A mode or method of ownership or holding title to property
B. tenancy
Lease with a definite end date
D. estate for years
Type of estate in which there is no written agreement between the landlord and tenant
B. . estate at will
The legal portion of the property and rights that are owned
A. interest
Ownership of all the rights to the property
A. fee simple
An interest in real estate that represents less than the fee simple estate
A. partial interest
When property is owned by two or more persons or entities at the same time
D. concurrent ownership
Allows two or more people to hold equal percentages with the right of survivorship
A. joint tenancy
A contract by which real estate is conveyed for life, for a term of years, or at will, usually for a specified rent
D. lease
Another name for lease
A. rental agreement
Combines the individual ownership of private dwellings with the shared ownership of common facilities of the entire project
D. common interest development (CID)
Consists of a separate fee interest in a particular specific space (the unit), plus an undivided interest in all common or public areas of the development
C. condominiums
A planning and zoning term describing land not subject to conventional zoning requirements
B. planned development
A real estate development in which a buyer can purchase the exclusive right to occupy a unit for a specified period each year
