Set 4: Property Description

An appraiser asks a title company to confirm a sale. The title company confirms the sale as a full value transaction using documentary transfer stamps. The stamps were issued at a rate of $.55 per $500 in value, and they total $308.55. The loan-to-value ratio is 80%, and the buyer didn't assume any pre-existing loans. What was the sales price?

$280,500

A property recently sold for $1,000,000. A tax assessor determines that 90% of the sales price is appropriate for the market value. He assesses the property at 60% of the market value. The property tax rate is $6 per $100. What is the tax bill?

$32,400

How many acres are in 47,916 square foot lot?

1.1

$250,000 square feet is equivalent to:

5.74 acres

In the government survey system, how many acres are in one section

640 acres

Gambrel Roof

A ''barn-like'' roof, where the upper portion of the roof is less-steeply angled than the lower part.

Multifamily Dwelling

A building containing two or more dwelling units

Accessory Building

A building separate from the main structure on a property. Often used for a specific purpose, such as a workshop, storage shed or garage.

Physical Characteristics

A category of elements of comparison in the sales comparison approach; comparable properties can be adjusted for differences in such characteristics as size, age (at the time of the transaction), condition, functional utility, and quality of the improvements.

Georgian

A classic, English-style hose characterized by simple rectangular shape and multiple stories.

Seasonal Dwelling

A dwelling not intended for year-round use, e.g., a vacation home such as a beach house or ski lodge, or a cabin or cottage.

Comprehensive Land Use Plan

A generalized, coordinated land use map and policy statement of the governing body of a local government that interrelates all functional and natural systems and activities relating to the use of lands, including but not limited to sewer and water systems, transportation systems, educational facilities, recreational facilities, and natural resources and air and water quality management programs. "Comprehensive" means all-inclusive, both in terms of the geographic area covered and functional and natural activities and systems occurring in the area covered by the plan. "General nature" means a summary of policies and proposals in broad categories and does not necessarily indicate specific locations of any area, activity or use. A plan is "coordinated" when the needs of all levels of governments, semipublic and private agencies and the citizens... have been considered and accommodated as much as possible. "Land" includes water, both surface and subsurface, and the air.

Dwelling

A house or other building which serves as a home.

Height Zoning

A municipal restriction on the maximum height of any building or other structure.

Zero Lot Line

A municipal zoning category wherein a building or other fixture may abut the property line.

Bungalow

A one-story, home-style dating from the early twentieth century. Often characterized by a low pitched roof.

Title Insurance

A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise.

Walk-through inspection

A process whereby an appraiser examines a property in preparation for estimating its value. Also, the process of inspecting a property for any damage prior to that property being bought or sold.

Special purpose property

A property with a unique physical design, special construction materials, or a layout that particularly adapts its utility to the use for which it was built; also called a special-design property.

Detached Single-Family Home

A single building improvement intended to serve as a home for one family.

Duplex

A single-building improvement which is divided and provides two units which serve as homes to two families.

Cape Cod Colonial

A single-story house style made popular in New England. Often characterized by a steep roof with gables.

Title

A specific document which serves as proof of ownership.

Survey

A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.

Gable Roof

A steeply angled, triangular roof.

Covenant A

A stipulation in any mortgage that, if not met, can be cause for the lender to foreclose.

Tudor

A style of architecture typified by exposed stone, wood and brick construction. Similar in style to English manor homes

Addendum

A supplement to any document that contains additional information pertinent to the subject. Appraisers use an addendum to further explain items for which there was inadequate space on the standard appraisal form.

Estate Tax

A tax on the estate or wealth of the deceased person that is usually computed as a percentage of the market value of the assets of the estate. See also inheritance tax.

Inheritance Tax

A tax on the right to receive property by inheritance; as distinguished from estate tax.

Remodling

A type of renovation that involves modification or updating of existing improvements.

Residential Property

A vacant or improved parcel of land devoted to or available for use as a residence, e.g., single-family homes, apartments, rooming houses. A piece of property used for permanent human habitation whether it be for single family or multifamily use. Many state regulatory agencies use this term to mean a property with 1-4 dwelling units.

Gross Building Area (GBA)

According to Fannie Mae, gross building area is the total finished area including any interior common areas, such as stairways and hallways of the improvements based on exterior measurements. It must include all finished above-grade and below-grade living areas, counting all interior common areas such as stairways, hallways, and storage rooms. It cannot count exterior common areas such as open stairways. It is the most common unit of comparison for two- to four-unit properties. GBA may be defined differently when used for office, industrial and agricultural buildings. GBA for these types of properties is often broken down further into Gross Leasable Area and/or Net Usable Area.

Gross Living Area(GLA)

According to Fannie Mae, the most common unit of comparison for one-unit properties, including units in PUD, condo, or co-op projects. Only finished above-grade areas can be used in calculating and reporting of above-grade room count and square footage for the gross living area. Exterior measurements should be used to calculate above-grade GLA, except that interior measurements should be used for units in condo or co-op projects. Gross living area does not include garages, basements or seasonal living areas such as porches, patios or decks. One standard of measurement used by some appraisers in calculating the gross living area of a single-family residence is the ANSI standard (American National Standards Institute).

Allison grants a life estate to Sam for the life of Kim, and after Kim's death, the estate will pass to Peter. Which of the following is true?

Allison has retained no interest in the property.

Variance

An exception to municipal zoning regulations granted for specific time period to allow for non-conforming use of land.

Common areas

Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of property nearby. Commonly found in condominium, PUD or office spaces.

Quadraplex

Any building designed to accommodate four families often shortened to more common term "fourplex"

Prefabricated

Any building or portion thereof which is manufactured and assembled off site, then erected on a property.

Latent Defects

Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

Attached Housing

Any number of houses or other dwellings which are physically attached to one another but are occupied by a number of different people. The individual houses may or may not be owned by separate people as well.

Improved land

Any parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.

Unencumbered Property

Any property which has no outstanding claims or liens against it.

Tax-Exempt Property

Any property which is not taxed.

Property Tax

Any tax that is imposed on persons on account of their ownership or possession of property and is measured by the number of units, the value, or some presumptive evidence of number of units or value, of such property. Note: This tax is generally, but not necessarily, intended to be a direct, proportional ad valorem tax

Hidden Amenities

Assets of a property which contribute to its value but are not readily apparent. Examples might include upgraded or premium building materials.

On-site improvements

Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

off-site improvements

Buildings, structures or other amenities which are not located on a piece of property but are necessary to maximize the use of the property or in some way contribute to the value of the property.

An appraiser is working on a residential appraisal and discovers during his property inspection that the owner has a copy of a recent appraisal report. How should the appraiser proceed?

Continue with his inspection and gather the data firsthand, including measuring the house

Frank is appraising a property, which is in a large development where the individual owners pay a monthly fee to the homeowner's association. What should Frank ask about in order to determine whether the subject property is a Condo or a PUD?

Do owners own the land on which their respective units sit?

A structural element that creates extra space in a roof for additional headroom or windows is a :

Dormer

Common Area Assessment

Fees which are charged to the tenets or owners of properties to cover the costs of maintaining areas shared with other tenets or owners. Commonly found in condominium, PUD or office spaces.

Jim needs to indicate the architectural term for the house's roof. The house is rectangular and the rain runs off on two sloping sides of the pitched roof. What type of roof does the house most likely have?

Gable

Compared with older homes, modern ___________ tend to suffer the greatest amount of functional inutility.

Kitchens and bathrooms

Suprus Land

Land that does not economically support the existing improvements and cannot be utilized to expand the current use or be sold separately, is called:

Manufactured Housing

Manufactured housing refers to Structures that are transportable in one or more sections. They are designed to be used as a dwelling when connected to the required utilities, which include the plumbing, heating, air-conditioning, and electrical systems contained therein. Manufactured Housing is designed and constructed to the federal Manufactured Housing Construction and Safety Standards (MHCSS), as evidenced by an affixed HUD Certification Label. Manufactured housing may also be referred to as mobile housing, sectionals, multi-sectionals, double-wide, triple-wide, or single-wide. (HUD Handbook 4000.1)

An accurate and adequate description of the improvements would include which of the following?

Photos and Sketches

Building Code

Regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards.

An owner's right to recover the use of his property at the end of a lease is called:

Reversionary Right

Example of riprian right is the reasonable use of water from a(n)?

River

In the rectangular survey method of legal land description, what is the name for an area of land measuring one mile by one mile?

Section

Kim is appraising a house and needs to indicate the architectural term for the house's roof. The house is rectangular and the rain runs off one side of sloping roof. What type of roof does the house most likely have?

Shed

In a climate where there is little or no freezing weather, which type of foundation became typical in the 1950s and generally did not have crawl space or a basement?

Slab on Grade

A property for which there is no identifiable market is called a(an)

Special purpose property.

Built-ins

Specific items of personal property which are installed in a real estate improvement such that they become part of the building. Built-in microwave ovens and dishwashers are common examples.

Ad Valorem Tax

Taxes assessed based on the value of the land and improvements.

Grade

The Slope of land around a building.

Assessment Ratio

The comparative relationship of a property's assessed value to its market value.

Improvement Ratio

The comparative value of an improved piece of land to its natural, unaltered state.

Assessment

The function of assigning a value to a property for the purpose of levying taxes.

Assessor

The jurisdictional official who performs the assessment and assigns the value of a property.

Sweat Equity

The method whereby a homeowner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.

Renovation

The process in which older structures or historic buildings are modernized, remodeled, or restored. Generally, the objective of renovation is to maintain or restore the basic plan and style of the building rather than to modify the original design by accretions or alterations, though new construction often accompanies restoration. Renovation is closely associated with urban renewal and may encompass the development of facilities to serve the community.

Title Search

The process whereby the title company researches a property's title history and ensures that no outstanding claims exist

Subject property

The property that is appraised in an assignment.

Location

The relative position of the property to competitive properties and other value influences in its market area; the time-distance relationships, or linkages, between a property or neighborhood and all other possible origins and destinations of people going to or coming from the property or neighborhood.

Floor Plan

The representation of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other features. Often includes detailed information about other fixtures and amenities.

Tenancy

The right to occupy a building or unit.

A floor framing plan must specify what?

The sizes and spacing of joists, girders and columns used to support the floor

BOMA Standard

The standard method of measurement for office buildings as defined by the Building Owners and Managers Association. -Visit BOMA for more information.

Building Line or Setback

The statutory distance between buildings and the property line, imposed by municipalities, home associations, or other agreements.

Non-conforming use

The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.

Assessed Value

The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than the market value or based on an assessment ratio that is a percentage of market value.

Semi-Detached housing

Two residences which share a common wall.

A homeowner wants to add a room to his house, but the current zoning does not permit the future use. The homeowner should apply for which of the following?

Variance

Joe and Bill are neighbors. Joe realizes that the wall Bill built last year is actually on Joe's property. This is:

an encroachment

A __________ mortgage is a mortgage that is secured by two or more separate properties.

blanket

All of the following are powers of government except:

deed restrictions

A private property is taken by the state for public use and the owner is paid just compensation. This is an example of

eminent domain

Before selling his property, Joe places a deed restriction on the property that states it must never be used for anything but a Little League field, which is its curent use. Bob buys the property, and due to the deed restriction, has a:

fee simple defeasible

An appraiser would not consider littoral rights when valuing a/an:

house whose lot borders a river.

A land tract is designated as wetlands if:

it possesses the hydraulic, soil type, or vegetation influences that lead the government to designate it as wetlands.

A littoral right is the reasonable use of water from a :

lake

All the following properties are subject to ad valorem taxes except

office machinery

Footings are;

part of the sub-structure

An avigation easement is an easement that:

permits aircraft approaching an airport to fly at low elevations above private property.

Lease purchase agreements would not be in the best interest of tenants who

plan to move eslewhere in the near future

Fenestration is:

the design and placement of windows in a building.

All of the following statements are true about condominiums EXCEPT

the developer funds the cost of maintaining common areas.

personal residence

the primary domicile of a person or family.