1.6-1.8

In order to obtain a real estate license, an applicant must be at least how many years old?

18

Assessed value

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.

Who holds the real estate license of an agent?

Broker

Price is typically equal to the cost of the property...?

False

A licensees license may be suspended or revoked if which of the following occurs?

The licensee is convicted of a felony

Real estate agents and brokers must be careful not to provide legal advise to their clients?

True

Real estate license are issued for a period not to exceed how many years?

2

Marketing comparison approach

A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties

Cost approach

An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.

Appraised value

An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.

A non-profit organization is looking to purchase a church. An appraiser was hired to assess the value of the church ñ. What appraisal method did the appraiser use?

Cost approach

If a real estate salesperson terminates their employment with their sponge ring broker, the salesperson license is concidered what?

Inactive

Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What method did the appraiser use...?

Income approach

Income Approach

One of three methods of the appraisal process applied to income producing property, and it involves a three step process- (1) find net annual income, (2)- set an appropriate capitalization rate or present worth factor, and (3) capitalize the income dividing the net income by the capitalization rate.

If a person's license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license...?

Satisfy the education requirements and retake the State exam

Depreciated value

The basis of depreciable asset used to compute the taxable gain from its sale, the basis is acquisition cost plus capital improvements less accrued depreciation

Insured value

The cost of replacing a structure completely destroyed by an insured hazard.

Improvements typically ............ in value?

depreciate