Unit 4 Real Property

The principle of appraising, which states that the maximum value is achieved when the property is in harmony with its surroundings is the principle of

Conformity

The life-cycle of community is defined by stages of development. These include

Growth, stability, decline, and gentrification

The words to have and to hold in a deed define the ownership that is being transferred. This phrase is called the

Habendum clause

At a closing, the buyer received a deed in which the grantor implied possession and ownership of the property. The buyer MOST likely received a

Bargain and sale deed

Location, or situs, is one of the major factors in determining the value of a property. Another factor that the appraiser will review is the ability of the community to attract income and business. This is called the community's

Economic base

A buyer purchased property but did not record the deed. Under these circumstances, the

buyers interest is not fully protected against third parties

A buyer could learn that exact boundary lines of a property by

paying for a stake survey

The type of legal description that would MOST likely be used to subdivide a tract of land for the development of a subdivision, or that is used to describe a vacant city lot is the

lot and block

An appraiser has measured a building to compute the GLA. This means the appraiser measured the gross living are

above grade

When an owner sold a parcel of real estate, he gave the buyer a quitclaim deed. On receipt of the deed, the buyer may be certain that

all of the owners interests in the property, as of the date of the deed, belong to the buyer

Sales or financing concessions, location, age, and condition are examples of

specific data

All of the following terms are associated with the economic characteristics of real estate EXCEPT

license

An owner is entitled to all land that accumulates from the deposit of soil by the action of water. The deposits of the additional soil are called

Accretion

All of the following are intended to convey legal title to real estate EXCEPT

An equitable title

The principal of appraising, which states that a property's value will adjust with any change such as a change of zoning from residential to commercial, or factory closing, is the principal of

Anticipation

A permanent reference monument used to establish elevations and altitudes above sea level is a

Benchmark

Expenses involved in the closing of a real estate transaction are shown on the settlement as a

Debit to either the buyer or the seller

Some time ago, a special assessment was levied against a property for sidewalk and street improvements in front of a house. Under the agreement with the purchaser, the buyers will not assume the special assessment. If the assessment has not been paid off prior to the closing, the amount remaining due will appear as

Debit to the seller

A closing is scheduled to take place April 15. In January, the owner paid the taxes for the entire year, and the buyers are assuming responsibility for taxes attributable to the period following the closing. At the closing, on the settlement statement, the adjustment made for property taxes appear as a

Debit to the seller and a credit to the seller

A testamentary trust means the trust was established by a

Deceased person's will

The four elements of value are

Demand, utilities, scarcity, and transferability (DUST)

An annual crop that is considered personal property is called a(n)

Emblement

Which of the following transfers is an involuntary alienation of property?

Eminent domain

Rising interest rates are an example of

External obsolescence

Economic, locational, environmental, and external obsolescence refer to

Factors affecting value outside of the property's boundary lines

Oversized or undersized sections are called

Fractional sections

The physical characteristics of real estate that means that every parcel of land is different is called

Heterogeneity

Which of the following is TRUE regarding an abstract of title?

It contains information taken from public records.

Which of the following is NOT a method that could be used to transfer ownership?

Lease

The survey that would have a POB, and usually uses feet and inches as the units of measurement, is the

Metes and bounds

Littoral water rights are found in the deed of a property whose boundary lines are on a

Navigable lake

A defect or cloud on a title to property may be perfected by

Obtaining quitclaim deeds from all other interest parties

Personalty or chattles refer to

Personal property

Assemblage is the process of merging two or more parcels of real estate into one parcel. The value that is created by assemblage is called

Plottage

Fructus naturales is classified as

Real property

The right to possess, control, enjoy, exclude, and dispose of real property is only found in the definition of

Real property

Which of the following is NOT usually prorated between buyer and seller at the closing?

Recording taxes

Normally, a deed is considered valid even if

Signed by an authorized attorney-in-fact-rather than the seller

The owner gave the buyer a deed, which guaranteed that the property was not encumbered during the time the owner held title, except as noted in the deed. The type of deed the owner gave the buyer is a

Special warranty deed

An owner transfers property to a buyer with a special warranty deed. Which of the following is TRUE?

The owner warranties are limited to the time he owned the property

Which of the following is TRUE regarding a deed and a title?

The purpose of a deed is to convey title from the grantor to the grantee

Which of the following statements is TRUE regarding title insurance?

There are two types of title policies that may be purchased. The owners policy covers the owner, while the mortgagee's policy covers the lender

Personal property attached to a rented space in order to conduct business is called a

Trade Fixture

The state, county, and municipal sales tax is many used as general revenue and is normally a debit to the seller on the Closing Disclosure. It is sometimes called a documentary stamp tax and may also be called

Transfer tax

Which of the following is FALSE regarding taxes?

Unpaid ad valorem taxes could create a general lien on the property

For a deed to be recorded, it must be acknowledged. The primary purpose of acknowledgment is to

Verify that the deed was signed without duress

An owner's title insurance policy normally covers all of the following EXCEPT

Zoning changes

An appraiser is hired to develop and communicate

an estimate of a property's market value

An appraiser does NOT

average the prices of properties that have recently sold

The linear measurements of a property along the street line or water line is

front footage

The survey that uses the terms check, township, and sections is the

government survey

For a deed to be valid, the

grantor must be legally competent

A smaller home is surrounded by larger, more expensive homes. The value of the smaller home will

increase because of the larger, more expensive properties

When a buyer is required to purchase a mortgagee's title policy, the title insurance policy will

indemnify the lender against some, but not all, of the possible defects in the title

An area of land that is 1-by-1 mile is a

section and contains 640 acres

A buyers office was accepted. To determine the value, the appraiser will MOST likely be hired by the

third party clearing house