Final Exam
Warranty
"A deed that conveys to the grantee title to the property free and clear of all encumbrances, except those specifically set forth in the document" is the definition of _____ deed. Bargain and sale Warranty Tax Quitclaim
Transferable development
"A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be sold to landowners in another location" are called _____ rights. Vertical Passive Temporary Transferable development
Promise
"A firm agreement to perform an act, refrain from acting or make a payment or delivery" is the definition of: Clause Promise Acceptance Commitment
Quitclaim
"A form of conveyance in which any interest the grantor possesses in the property described in the deed is conveyed to the grantee without warranty of title" is the definition of a _____ deed. Grant Quitclaim Indeterminate interest Warranty
Graduated-payment
"A lease that provides for specified changes in the amount of rent at one or more points during the lease term" is called a(n) _____ lease. Percentage Graduated-payment Net Gross
Adjustable rate
"A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied" is the definition of a(n) _____ mortgage. Adjustable rate Interest only Index Fluctuating
Estate
"A right or interest in property" is a(n): Easement Estate Fee simple estate Partial interest
Regression
"In appraisal, the concept that a higher-priced property will be worth less in a lower-priced neighborhood than it would be in a neighborhood of comparable properties" is the definition of the principle of: Regression Progression Balance Conformity
Land
"The earth's surface, both land and water, and anything that is attached to it whether by the course of nature or human hands" is the definition of: Land Site Eminent domain Property
Market area
"The geographic region from which a majority of demand comes and which the majority of the competition is located" is the definition of: Market analysis District Neighborhood Market Area
Scarcity
"The present or anticipated undersupply of an item relative to the demand for it..." is the definition of: Supply Demand Scarcity Utility
Salvage
"The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere" is the definition of _____ value. Contributory Business Salvage Going concern
Leasehold estate
"The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease" is the definition of: Leased fee estate Lessee estate Leasehold estate Lessor estate
Cost
"The total dollar expenditure to develop an improvement" is the definition of: Price Value Production cost Cost
.0315
3.15% is the same as: 3.150 .3150 .0315 .00315
$2772
A purchaser bought a property for $176000, put 10% down and borrowed the rest at 6.5% interest for 25 years. The lender charged 1.75 points at the closing. How much was paid for the points? $2456 $2772 $2823 $3245
16.5
A rod contains _____ feet. 8 16.5 66 660
Externalities
A homeowner fears the construction of a factory nearby will decrease the value of her property. This illustrates the principle of: Substitution Increasing and decreasing returns Externalities Balance
$1.43
A lot contains .56 acres. It sells for $35000. How much did it sell for per square foot? $.97 $1.12 $1.32 $1.43
All of the above
Police power would include which of the following: Building codes Zoning Environmental regulations All of the above
Zoning
All of the following would be considered to be economic influences on value EXCEPT: Interest rates Zoning Unemployment rates Consumer Price Index
Wall to wall carpeting
All of the following would typically be considered to be personal property EXCEPT: Portable dishwasher Wall to wall carpeting Countertop microwave Clothes dryer
Written or oral, client
An appraisal report is defined as "the _____ communication of an appraisal; the document transmitted to the _____ upon completion of an appraisal assignment." Written, intended user Written or oral, client Oral, client Written, homeowner
Easement in gross
An easement for a railroad or pipeline would be an example of a(n):
12
Demand analysis in a market indicates that 15 houses per month can be sold in the market. There are currently 180 houses for sale in this market. How many months' inventory does this represent? 6 9 12 18
36
Forty percent of the houses in a neighborhood are Colonials and 18% are Cape Cods. There are a total of 200 houses. How many are Cape Cods? 36 40 48 80
$174500
Here are all the sales in your area in the last 4 months. They sold for: $178500; $166000; $172750; $182000; $168000; $174000; $176000; $184000; $170000; $175000; $172000; $181500. What is the median sale price? $174000 $174500 $174900 $175000
Trustee
In a trust deed state, title to a property is vested in the _____ until the mortgage lien is satisfied. Mortgagor Grantee Grantor Trustee
Fannie Mae and Freddie Mac
In the 1970s, who developed uniform rules for mortgage underwriting? FIRREA Professional appraisal organizations The Appraisal Subcommittee Fannie Mae and Freddie Mac
Ivan
Janet has a property with no road frontage. She has an access right of way across the property of her neighbor Ivan for ingress, egress, and regress. Who has the servient tenement in this situation? Janet Ivan There is no servient tenement in this situation They are both servient tenements
Estimate, opinion
Modern definitions of the word "appraisal" have replaced the word _____ with _____. Pounds, dollars Time, market conditions Value, cost Estimate, opinion
Legally permissible
Normally the first step in highest and best use analysis is to research the uses that are: Socially acceptable Financially possible Legally permissible Maximally productive
Transferable development rights
Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wished to develop his property into additional lots. This is an example of: Transferable development rights Easement in gross Subsurface rights Easement Appurtenant
Dollars per square foot per year
Retail space is usually compared on the basis of: Dollars per square foot per week Dollars per square foot per year Dollars per cubic foot per month Dollar per gross square foot per month
Money market
Short term money instruments are traded on the: Money market Capital market Commodities market New York Stock Exchange
Sound waves
Sonic measuring devices employ _____ to take measurements. Laser beams Wheels Sound waves Light beams
Inverse
Supply and demand move in a(n) _____ relationship. Inverse Proportionate Reverse Parallel
Governmental
Taxes would be an example of a(n) _____ force affecting property values. Environmental Economic Governmental Social
Only one
Tenancy in severalty involves _____ owner(s). Only one More than one At least two Corporate
Not-for-profit organization
The Appraisal Foundation is a: Federal agency Private shareholder-owned corporation State agency Not-for-profit organization
First
The Ethics Rule of USPAP is the _____ of five Rules in USPAP. Fifth Third First Second
500
The Uniform Commercial Code covers the sale of goods over $_____. 500 100 50 250
Government agencies
The appraisal standards and qualifications criteria promulgated by the boards of The Appraisal Foundation achieves legal authority by adoption, citation, or implementation by Government agencies The U.S. Congress only Fannie Mae and Freddie Mac Ginnie Mae
Qualifying education, examination, experience, continuing education
The four components of the Appraiser Qualification Criteria are: Qualifying education, examination, experience, continuing education Continuing education, examination, experience, college credits Continuing experience, qualifying experience, examination, continuing education Experience credits, examination, qualifying credits, unpaid internship
Voidable at the minor's option
The general rule of contracting with minors is that a contract with a minor is: Illegal Voidable at the minor's option Voidable by either party to the transaction Valid and fully enforceable in most states
$230444
The median price of homes sold in your county nine months ago was $217400. Prices have been increasing at the rate of 8% per year. What is the median price of homes today? $214580 $217360 $225720 $230444
USPAP
The nationally-recognized ethical and performance standards for appraisers are known as: The HUD code 1004 FIRREA USPAP
Directly, proportionately
The principle of supply and demand states that the price of a commodity, good, or service varies _____, but not necessarily _____, with demand. Indirectly, proportionately Directly, proportionately Inversely, directly Directly, inversely
Imperfect
The real property market is generally classified as a(n) _____ market. Perfect Imperfect Segregated Distressed
Interest payments
The return ON investment is usually accomplished through: Reinvestment Refinancing Interest payments All of the above
Warranty
The strongest form of deed is the _____ deed. Warranty Grant Tax Bargain and sale
Census.gov
The web site with the largest amount of demographic information is: Realtor.gov Demographics.com Bls.gov Census.gov
Supply, demand
Unfortunately, with real property, the _____ side of the equation is relatively fixed and slow to change whereas the _____ side of the equation can change quickly. Supply, highest and best use Demand, supply Supply, demand Demand, distribution
Voluntary guidance
Valuation Advisories, issued by The Appraisal Foundation are considered: Enforceable by the federal government Prohibited acts, and should not be followed Voluntary guidance Law
146.62
What is the mean of these numbers: 123.5, 136.2, 162, 188.9, 153.27, 227.98, 16, 342.66, 72.7, 21.55, 168.08? 135.55 146.62 183.22 202.56
94.5
What is the median of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)
35.5
What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95? 31 35.5 36 37.2
Cooperative
What type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit? PUD Condominium Cooperative REIT
122, 126 (bi-modal)
When appraising an income producing property, you have the following GRMs indicated from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the mode of the GRMs? 139 122, 126 (bi-modal) 124 There is no mode
Contribution
When estimating the value of a fireplace in a single-family home, the most important principle is the principle of: Change Substitution Increasing and decreasing returns Contribution
The Appraisal Subcommittee
Which entity is responsible for monitoring state appraiser licensing and certification agencies? The Appraisal Foundation The Appraisal Standards Bureau The Appraisal Subcommittee Bureau of Consumer Financial Protection
Fee simple estate
Which is NOT a partial estate?
Must be recorded
Which is NOT a requirement of a valid deed? Must be in writing Property adequately described Consideration stated Must be recorded
This analysis can only be applied if there is no existing improvements
Which is NOT true concerning the highest and best use of land as though vacant? It could be to leave it vacant It could be for projected development This analysis can only be applied if there are no existing improvements It could be the existing use
It is not limited by governmental powers
Which is NOT true of a fee simple estate? It is inheritable It is not limited by governmental powers It is transferable It is perpetual
All of the above
Which of the below is a requirement of a valid real estate contract? Consideration In writing and signed Lawful objective All of the above
Real estate
Which of the following types of investments has historically generated the highest return on investment? Real estate Savings account Money market fund Certificate of deposit
Anticipation
Which principle has the strongest application in the valuation of income producing properties? Externalities Change Substitution Anticipation
Decreasing building permits
Which would NOT be an example of demand in a real property market? Increasing immigration into an area Decreasing building permits Decreasing vacancy rates Increasing unemployment
$1062.75
You apply for a mortgage and the lender will allow you to spend up to 30% of your annual income for housing costs. These housing costs will include your mortgage, property taxes, and insurance. Your income is $1635 every two weeks. If you apply for the loan, how much can your maximum monthly payment be? $1062.75 $1145.42 $1187.50 $1204.66
$744120
You bought a property for $650000, 2 years ago. Values increased in that area by 8% the first year and 6% the second year. How much is your property worth today? $724600 $741000 $744120 $788020
There is no mode
You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the mode of these indications? $930 $1070 $995 There is no mode
$24572.75
You want to buy a house for $216500. You can get a loan for 90% of value. You will also have to pay 1.5 points on the loan. How much will you have to put down at the closing? $2922.75 $19456.25 $21650 $24572.75
$93.53
Your property, which consists of a house and lot, is valued at $244000. You want to insure it for 80% of value and the annual insurance premium will cost $5.75 per thousand. How much will your insurance cost per month? $78.90 $86.60 $93.53 $101.16
GIS
_____ is a computerized mapping system for encoding, retrieving, analyzing and presenting geographic or spatial data. MLS GIS GPS EDI