Final

In valuing an improvement, the interest which a contractor must pay to borrow construction money: A. Is properly included as part of the cost approach B. Should not be included in the cost approach C. Is an expense to the contractor which should be ignored D. is an expense item of the income approach

A. Is properly included as part of the cost approach

When a property's highest and best use can reasonably be expected to change in the near future, the prevailing highest and best use is referred to as a (an) A. Interim use B. Temporary use C. Secondary use D. Current use

A. Interim use

A commercial lot 50 feet wide and 150 feet deep just sold for $70,000 cash. The sales price per front foot comes to: A. $9.30 B. $466 C. $1,400 D. none of the above

C. $1,400

If a documentary transfer tax of $275.00 is paid, what is the indicated price of the sale assuming cash to a new loan? A. $275,000 B. $302,000 C. $250,000 D. $200,000

C. $250,000

An office building has a leasable area of 45,000 square feet. Its current reproduction cost is $65 per square foot. The building is on one acre of land. Comparable land cost $17 per square foot. The building has suffered $40,000 depreciation. What is the total value of the property using the cost approach. A. $740,520 B. $2,885,000 C. $3,625,520 D. $3,665,520

C. $3,625,520

A house built in 1939, remodeled in 1970, and incorporating all significant features of houses built in 1965 would probably have an effective year of: A. 1939 B. 1952 C. 1965 D. 1970

C. 1965

A warehouse has a market value of $3,000,000. It generates an annual gross income of $500,000. Annual operating expenses are also $350,000. What is the gross income multiplier? A. 4 B. 5 C. 6 D. 6.5

C. 6

If the appropriate monthly gross rent multiplier is 180 and the monthly rental is $600, what is the indicated value of the subject property? A. $160,000 B. $180,000 C. $108,000 D. $110,000

$108,000

Which of the following describes the manner in which the real property transfer tax in California is determined: A. $.55 per $500 of cash contribution (new money) B. $ 1.10 per $1000 of sales price C. 2% of the value of the property D. 11% of the first trust deed

A. $.55 per $500 of cash contribution (new money)

What would be the documentary transfer tax on an all cash sale of $65,000? A. $71.50 B. $65.00 C. $650.00 D. $715.00

A. $71.50

The definition of personal property as defined in the Revenue and Taxation Code: A. All property except real estate B. Only property capable of being moved C. Only property that can be assessed on the unsecured roll D. All of the above

A. All property except real estate

The term "Unit Valuation" refers to: A. Appraisal of the unit of property commonly traded in the market B. Separate appraisal of the units of land, improvements, and personal property C. Appraisal of all assessable property within the same ownership unit D. Appraisal of property that comprises one assessment parcel

A. Appraisal of the unit of property commonly traded in the market

What information is not needed to apply the building residual technique A. Building value B. Land Value C. Net operating income D. Land and building capitalization rates

A. Building value

A basic characteristic of real property is: A. It's value is tied to a specific location B. The benefits are derived over a short period of time C. Among property types, there is a great degree of standardization D. All of the above

A. It's value is tied to a specific location

Which of the following is a true statement concerning the accessibility of manufactured homes ? A. Manufactured homes purchased new after July 1, 1980 are subject to assessment for property taxes B. Manufactured homes purchased new before July 1, 1980 are subject to assessment for property taxes C. Manufactured homes not anchored to permanent foundation are exempt from property taxes D. All manufactured home accessory structures are exempt from property taxes

A. Manufactured homes purchased new after July 1, 1980 are subject to assessment for property taxes

Property tax laws permits the preparation of current market value appraisals under which of the following circumstances ? A. Only if the property experiences a change in ownership, new construction or become less valuable than the base year value B. Only if the property experiences a change in ownership or new construction C. Only if the property experiences a change in ownership D. Only if the property experiences new construction

A. Only if the property experiences a change in ownership, new construction or become less valuable than the base year value

Which of the following is exempt from property taxes only when an exemption is filed? A. Properties used exclusively for religious worship B. Business inventories C. Household personal property of a home owner D. All of the above

A. Properties used exclusively for religious worship

Generally the rights to be appraised for property tax purposes are: A. The fee-simple rights B. Not subject to government limitations C. only those held by the owner of record D. All of the above

A. The fee-simple rights

One of the basic assumptions of the income approach is that A. Value is a function of income B. Expense for management in a large building is more C. The market approach should agree with the income approach D. None of the above

A. Value is a function of income

An apartment has a scheduled gross of $140,000 per year. Vacancy and collections loss is 5%. Other expenses will amount to $47,000 per year. Using a gross rent multiplier of 8 will result in an appraisal of ? A. $1,064,000 B. $1,120,000 C. $688,000 D. $1,075,000

B. $1,120,000

A township is A. an unincorporated town located in a rural area B. A geographical area that contains 36 square miles C. A geographical area that contains one square mile D. A six mile wide strip that runs parallel to the prime meridian

B. A geographical area that contains 36 square miles

Replacement cost, as used in the field of appraisal, may be defined as the cost, as of the date of: A. Appraisal, of replacing the existing improvements with an exact replica B. Appraisal, of replacing the existing improvement with one of like utility C. Construction, of replacing the existing improvement with an exact replica D. Construction, of replacing the existing improvement with one of like utility.

B. Appraisal, of replacing the existing improvement with one of like utility

Lannie and Carol bought a homesite several years ago, it remained vacant until this year when they built and occupied their new home. How should the assessor treat the property? A. Appraise the new building; reappraise the land B. Appraise the new building; do not reappraise the land C. Do not appraise the new building, reappraise the land D. Do not appraise the new building, do not reappraise the land

B. Appraise the new building; do not reappraise the land

The reliability of the cost approach is directly related to the: A. Type of construction B. Estimated of depreciation C. Manner in which the neighborhood is maintained D. Ration of land to building value

B. Estimated of depreciation

An agreement between the buyer and the seller on the asking price of a property is: A. Always assumed to be the market value B. Market value when similar properties are selling for this amount C. Never the market value D. The market value only when the lender also agrees

B. Market value when similar properties are selling for this amount

Residential percent good tables provide the most realizable adjustments to replacement cost estimates of which of the following: A. Residences constructed prior to 1940 B. Residences whose maintenance is typically of others of the same age C. Residences located in non-urban areas D. Wood frame structures

B. Residences whose maintenance is typically of others of the same age

Which economic principle is indicated by the statement, potential buyers of property consider prices paid for similar properties? A. Conformity B. Substitution C. Highest and best use D. Increasing returns

B. Substitution

Satisfactory application of the appraisal process permits the appraiser to: A. State an opinion of value at the beginning of the process B. Withhold the value decision until making an analysis of the separate value indicators C. By-pass the steps when the sales price of the subject seems reasonable D. Base the value decision on the average of the separate value indicators

B. Withhold the value decision until making an analysis of the separate value indicators

Which of the following procedures would be most valid in the market approach when comparing houses with abnormal size differences A. Apply the average price per square foot derived from sales B. Apply the median price per room derived from sales C. Adjust each comparable sale by dollar amount from sales for size difference D. Use the average price paid per total property unit

C. Adjust each comparable sale by dollar amount from sales for size difference

The price paid for a property sold under conditions of duress most likely will represent: A. A reliable indicator of value of similar properties B. A reliable indicator of value of the sold properties only C. An unreliable indicator of value of similar properties and the sold property D. An unreliable indicator of value only of the sold property

C. An unreliable indicator of value of similar properties and the sold property

Two identical properties have recently sold, one for $60,000 and the other for $55,000. Both sales appear to meet the conditions of a market value sales. The proper conclusion for you to draw is that: A. Prices should be average to arrive at market value B. The highest price is the only one meeting the definition of value C. Both prices may be within the band of value D. None of the above

C. Both prices may be within the band of value

The analysis of an apartment neighborhood indicated that income expectations have been adversely affected by closing a large industrial plant. This is an example of depreciation: A. Due to functional obsolescence B. Due to physical deterioration C. Due to external obsolescence D. All of the above

C. Due to external obsolescence

Access to the second bedroom of a house may be gained only through the first bedroom. This is an example of A. Eminent domain B. Amenities C. Functional obsolescence D. Aversion

C. Functional obsolescence

Which of the following is an example of a taxable possessory interest A. Jake builds a cabin on land owned by the Balzac Corporation B. Jake builds a cabin on land he purchased from the U.S. department of interior C. Jake builds a cabin on land he leased from the U.S. forest service D. All of the above

C. Jake builds a cabin on land he leased from the U.S. forest service

Land values of parcels which are the same size and are side by side A. Should have the same value B. Must have different values C. May have different value D. None of the above

C. May have different value

The presumption that the market value of a property will conform to the sales price of close substitutes is based upon the: A. Principle of conformity B. Market approach C. Principle of substitution D. Presumption of market value

C. Principle of substitution

It is proper to adjust a sale price as an indicator of value when the A. Property was not on the open market B. Buyer was uninformed C. Sale is old D. The transaction resulted in cash to the seller

C. Sale is old

In the replacement cost approach, representative costs should reflect A. the costs of the most efficient builders in the area B. Costs dictated by local representatives of the Carpenters' Union C. The cost of typical builders who are doing the bulk of the work in the area D. A statistical sample of construction costs in the area

C. The cost of typical builders who are doing the bulk of the work in the area

The principle of substitution encompasses the idea that: A. All properties will be replaced B. Utility is available in all property C. The upper limit of value is found by acquiring an equally desirable property D. Properties are seldom replaceable

C. The upper limit of value is found by acquiring an equally desirable property

A house is rented unfurnished for $500 per month. Using the gross rent multiplier method, the appraiser estimated the value of the property to be $80,000. What monthly gross rent multiplier did he use? A. 0.16 B. 1.60 C. 16.0 D. 160.0

D. 160.0

How many acres are in the S1/2 of the SW 1/4 of section 12 A. 4 acres B. 40 acres C. 10 acres D. 80 acres

D. 80 Acres

Land value can be estimated by: A. Vacant land sales B. Capitalization of ground rents C. Land residual capitalization technique D. All of the above

D. All of the above

The existing lease on a property: A. May affect the selling price B. Will not affect the market value for the property tax purposes C. May meet the requirements of an economic rent D. All of the above

D. All of the above

The principle of anticipation can be applied to A. An apartment building B. A commercial structure C. A single family residence D. All of the above

D. All of the above

The reactions of people in the market toward real estate are different from many other commodities because: A. Real estate is immobile B. The nature of the real estate market is different C. Benefits of real estate are yielded over a longer period of time D. All of the above

D. All of the above

The California Constitution provides that: A. All property is taxable B. All property is taxable except for unsecured personal property C. All property is taxable except for disabled veterans homes D. All property is taxable unless otherwise provided

D. All property is taxable unless otherwise provided

While actual sales are preferred in the market approach, listings and offers may help bracket the value. in this respect A. Listing should not be considered direct evidence of value B. Real estate brokers and title companies are other sources of sales data C. Neither of the above is correct D. Both a and b are correct

D. Both a and b are correct

Which of the following categories of depreciation cannot be cured by the property owner A. Physical deterioration B. Functional obsolescence caused by some deficiency C. Function obsolescence cause by excessiveness or over adequacy D. Economic obsolescence

D. Economic obsolescence

After freeway construction, the volume of business on a street decreased by 50%. This can be considered as A. Functional Obsolescence B. Poor smog controls C. Poor Urban planning D. External Obsolescence

D. External Obsolescence

The maximum earnings of a property based on economic rent is A. Effective gross income B. A long term annuity C. A reversionary right D. Gross income

D. Gross income