Section 2-4 Extra Study Questions

rate

A ______ is a ratio that compares two quantities.

plat map

A detailed map of a subdivision that includes boundaries, measurements, and distances between points

Transfer ownership before death and avoid probate

A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ______.

baseline

An east-west line used as a reference point

any time

At what point during ownership may a property owner place a restriction on a deed?

Personal Property

Beneficiary interest in land that's part of a land trust is considered ______.

condemnation

Eminent domain is the governments' power to take private land for public use. What is it called when the government actually seizes someone's property?

Appraisal Practices Board

If Vlad the appraiser runs into a valuation issue that he's not sure how to address, which group will be most likely to provide guidance for him?

Is not required to inform her why her application was rejected

Janice, who has lived in an apartment for many years, is interested in moving to a cooperative. She submits an application to the cooperative's review board, but her application is rejected. The board ______.

fee simple determinable

Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?

subchapter s

Lewis and Elliot started a real estate investment business together. After much discussion with their attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't have to pay corporate taxes. What form of business do they have?

They don't require a general partner.

Limited liability companies and limited liability partnerships are favorable forms of business because ______.

Deductible on his personal income tax returns

Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______.

Peter conveys the real estate to Tom

Peter wants to set up a land trust so that his children can benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust, and Tom agreed. How is the trust created?

doctrine of laches

Property owners who are inconsistent in enforcing their rights can lose them through ______.

joint tenancy

Sam and Bridget are cousins who jointly own property. They are both named on the deed, they received title at the same time, they have the right of survivorship, and they each have equal interest and undivided rights of possession. What type of ownership do they have?

metes and bounds

Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when he surveyed the new neighborhood was to reference what type of description?

The Appraisal Foundation

The umbrella organization that's authorized by Congress to develop and oversee the standards and requirements real estate appraisers must follow is called ______.

in writing and in accordance with uniform standard

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______.

plat references

What does the lot and block system use to develop a property's legal description?

A north-south line used as a reference point in the rectangular government survey system

What is a principal meridian?

A one-square-mile square formed in the use of the rectangular government survey system

What is a section?

To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence

What is the purpose behind Appraiser Independence Requirements?

Reversionary interest

What type of interest involves the property ownership going back to the original owner at the end of the life estate?

Something that's divided into a number of equal parts

What's a fraction?

mete

When Shauna looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "north for 314 feet" represent?

Give the proceeds to the beneficiary

When a land trust expires, the trustee must either extend the trust term or sell the real estate and ______.

The southeastern-most section of the township

When looking at a rectangular government survey system map, where would Section 36 be located?

Mortgage REITs

Which REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates?

The state where the appraiser is licensed or certified

Which entity is responsible for ensuring that real estate appraisals are conducted by qualified appraisers who follow USPAP?

Joint Tenancy

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

Pur autre vie

Which term means "for another's life"?

Fee simple subject to a condition subsequent

Which type of an estate doesn't end automatically when the stated event or condition occurs?

lot and block

Which type of legal description do courts prefer?

requires board approval

With a cooperative, the transfer of ownership ______.

Sales Price

You're the listing agent for a seller who's moving to a different state and needs to unload a property quickly. You list the property for $180,000, but sell within the week at $167,000. The appraisal shows that your listing price accurately reflected the home's value. That makes $167,000 the ______.

The Jurisdictional Exception Rule

accounts for differences between USPAP and the law.

Appraisal Independence Requirements (AIR)

apply to conventional loans used to purchase a single-family dwelling of one to four units. Federally insured or guaranteed loans (such as FHA or VA or commercial loans) are exempt.

subchapter s

corporations that are taxed as partnerships. They don't pay corporate income taxes, and shareholders may deduct losses on their taxes that represent their share of the corporation's losses.

The Competency Rule

details the qualifications required of an appraiser for the different types of properties/appraisals.

The Ethics Rule

ensures integrity and impartiality throughout the appraisal process.

The Scope of Work Rule

ensures that the appraiser employs the right tools in order to tailor an appraisal to satisfy the client's needs.

restriction

may run with the land forever (appearing on all future deeds), or it may have a time limit.

The Record Keeping Rule

outlines the documentation that appraisers are required to maintain in the appraisal file.

Appraisal Practices Board

provides appraiser guidance on valuation issues.

Appraisal Qualifications Board

responsible for developing the minimum federal licensing and certification requirements for real property appraisers?

Appraisal Subcommittee

responsible for ensuring that states follow the minimum standards required of appraisers as stated in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989? monitors the way appraiser standards are upheld within each state.