Appraisal Book 2

  1. Anything that is capable of being owned and gained lawfully
  2. The interests, benefits and right inherent in the ownership of real estate

    A. real property
  3. An ownership concept describing all the legal rights that attach to the ownership of real property

    D. bundle of rights
  4. An identified parcel or tract of land

    D. real estate
  5. Real property to a reasonable height

    A. airspace
  6. The rights to underground, natural resources such as minerals, oil, gas

    C. subsurface rights
  7. Identifiable tangible objects that are considered by the general public as being personal

    A. personal property
  8. Another term for personal property

    C. chattel
  9. Personal property that has become affixed to real estate

    B. fixture
  10. An item of personal property used to conduct business

    C. transferability
  11. General term of various legal rights, which attach to certain types of information, ideas, or other intangibles

    B. intellectual property
  12. A limitation on the use of real property and may be placed by a private owner, a developer, or the government

    A. restriction
  13. 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
  14. The right of the government to take private property from an owner, for the public good, paying fair market value
    eminent domain
  15. A legal process in which property reverts to the state because the deceased left no will and has no legal heirs

    D. escheat
  16. Recorded deed restrictions that run with the land, usually initiated by the original subdivider

    D. CC&Rs (Conditions, convenant & restrictions)
  17. The monetary relationship between properties and those who buy, sell, or use those properties
  18. The desire to buy or obtain a commodity
  19. The ability to transfer ownership of an item from one person or entity to another
  20. The most probably price property should bring in a competitive and open market under all conditions requisite to a fair sale
    market value
  21. Property is best defined as:

    D. anything capable of being owned and gained lawfully
  22. Which os these is considered real property

    A. airspace
  23. Which of the following is not one of the tests of a fixture?

    A. time of attachment
  24. 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
  25. 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
  26. 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
  27. 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
  28. Privately owned real property in most states is subject to real estate taxation. Exempt properties may include

    D. all of the above
  29. For an appraiser, value is:

    B. not a fact, it is a qualified opinion
  30. 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
  31. The value of real property is best measured by:

    C. demand, utility, scarcity, and transferability
  32. The ultimate test of functional utility is:

    A. marketability
  33. 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
  34. 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
  35. The process of estimating market value for a real property as of a specific time

    D. valuation
  36. 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
  37. A short-term and temporary use of a property until it is ready for a more productive highest and best use
    interim use
  38. Requires that land and improvements be appraised on the basis of the same use

    A. principle of consistent use
  39. 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
  40. 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
  41. The first phase of teh life cycle, which consists of initial construction of improvements on vacant land
  42. Delayed repairs and deterioration of building generally mark the third phase in the life cycle of a neighborhood
  43. The depreciation of an asset due to ordinary usage
    Wear and Tear
  44. The fourth and final phase in the life cycle of a neighborhood that occurs through the demolition, relocation, or major renovation of existing buildings
  45. States that maximum value results when properties in a neighborhood are relatively similar in size, style, quality, use and/or type
    Principle of conformity
  46. States that highest-valued properties tend to suffer when placed in close proximity with lower-valued properties
    Principle of regression
  47. Computer software programs that analyze data using automated systems, such as regression analysis and/or so-called artificial intelligence

    C. automated valuation models
  48. 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
  49. States that real estate values are affected by supply and demand because of competition
    Principle of competition
  50. Calculates the worth of a particular component in terms of its contribution to the value of the whole property
    Principle of contribution
  51. 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
  52. The income generated by a project after the four agents of production have been paid
    Surplus productivity
  53. Labor, management, capital, and land
    four agents of production
  54. Recognizes competing investments, usually in different industries, that may have a greater return
    Principle of opportunity cost
  55. Highest and best use can best be described as the use that will

    D. result in the maximum return on investment
  56. The principle of conssitent use affirms that:

    C. improvements are not taken into consideration
  57. 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
  58. The principle of supply and demand must include an anlysis of:

    D. all of the above
  59. 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
  60. The principle of anticipation is easiest to measure int he case of

    A. income-producting property
  61. What are the four stages of the heighborhood life cycle?

    D. development, stability, decline, and revitalization
  62. 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
  63. 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
  64. Typically, the principle of competition follows 3 steps. Which of the following is not one of the tree steps?

    C. competition decreases profits
  65. 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
  66. Overall, the principle of contribution emphasezes that cost:

    B. is not necessarily equal to value
  67. The principle of increasing and decreasing returns can best be applied when there is

    C. an over-improvement on a parcel of land
  68. The income generated by a project after the four agents of production have been paid is known as

    C. surplus productivity
  69. 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
  70. 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
  71. Which type of estate represents the most complete form of ownership?

    B. fee simple estate and estate in fee
  72. 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
  73. Which of the following is a leasehold estate?

    B. estate for years
  74. A month-to-month tenancy is typically an:

    B. estate from period to period
  75. A partial interest is best described as an interest in real estate that represents:

    B. less than the fee simple estate
  76. 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
  77. 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
  78. The words time, title, interest, and possession are associated with:

    B. survivorship
  79. 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
  80. All of the following are classifications of a lease, except:

    A. amount of payment
  81. 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
  82. 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
  83. What is the commonality between mobile homes and manufactured homes?

    C. both are factory built
  84. Time-share properties are primarily designed for buyers who want:

    C. vacation property
  85. Ownership concept describing all the legal rights that attach to the ownership of real property

    A. bundle of rights
  86. Ownership interest or claim a person has in real property

    B. estate
  87. An estate of indefinite duration and can be sold or inherited

    B. freehold estate
  88. Tenant's interest in the leased property during the term of the lease

    C. leasehold estate
  89. The most complete form of ownership

    B. estate in fee
  90. Limited in duration to the life of its owner or the life of another designated person

    C. life estate
  91. A mode or method of ownership or holding title to property

    B. tenancy
  92. Lease with a definite end date

    D. estate for years
  93. Type of estate in which there is no written agreement between the landlord and tenant

    B. . estate at will
  94. The legal portion of the property and rights that are owned

    A. interest
  95. Ownership of all the rights to the property

    A. fee simple
  96. An interest in real estate that represents less than the fee simple estate

    A. partial interest
  97. When property is owned by two or more persons or entities at the same time

    D. concurrent ownership
  98. Allows two or more people to hold equal percentages with   the right of survivorship

    A. joint tenancy
  99. 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
  100. Another name for lease

    A. rental agreement
  101. Combines the individual ownership of private dwellings with the shared ownership of common facilities of the entire project

    D. common interest development (CID)
  102. 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
  103. A planning and zoning term describing land not subject to conventional zoning requirements

    B. planned development
  104. A real estate development in which a buyer can purchase the exclusive right to occupy a unit for a specified period each year

    A. time-share
Card Set
Appraisal Book 2
Ch 1-3