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203 Multiple choice questions

  1. combination of all elements that constitute proof of ownership
  2. a valuation service performed by an individual acting as an appraiser
  3. the value a specific property has for a specific use
  4. value of a property assuming a specific use, which may or may not be the property's highest and best use on the effective date of the appraisal.
  5. amount asked, offered, or paid for a property
  6. pertain to circumstances and trends that affect supply and demand
  7. total range of ownership interests in real property. the most complete form of ownership.

    include:

    1. possession
    2. transfer
    3. lease
    4. mortgage
    5. improve
  8. the area associated with a subject property that contains its direct competition
  9. land not currently needed to support the existing improvement but can't be separated from the property and sold off
  10. principle of conformity that states that the value of a superior property is adversely affected by association with an inferior property of the same type
  11. the right to use another's land for a stated purpose
  12. the compound interest factor that indicates the amount per period that will grow, with compound interest, to $1
  13. a contract providing for regular payments of predictable amounts (monthly, quarterly, annually)
  14. the date of the value opinion
  15. a. land and water, and anything that is attached to it whether by nature or man-made.
    b. each parcel is immobile and unique, finite, and a commodity
  16. a. where the interaction of supply and demand takes place
    b. gathering of people for the buying and selling of things
  17. created intentionally by property owner's actions. mortgage is example
  18. involve the environmental surroundings, both natural and man-made
  19. a.an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which could alter the appraiser's opinion if found to be false.
    b. presumes as fact otherwise uncertain information about a property
  20. reasonably probably and legal use of vacant land or improved property that is physically possible, appropriately supported, financially feasible, and results in the highest value
  21. concept that underlying compound interest that holds that $1 received today is worth more than $1 received in the future due to opportunity cost, inflation, and certainty of payment
  22. trespassing on the domain of another
  23. interaction of buyers and sellers who trade short-term instruments
  24. the act or process of developing an opinion of value
  25. lien that binds all assets of individual debtor(their property) to the lien
  26. 4 stages:

    1. growth
    2. stability
    3. decline
    4. revitilization
  27. the total return greater than or equal to the amount invested
  28. the market value of all tangible and in-tangible assets of an established and operating business
  29. a. costs associated with entrepreneur's ability to combine land, labor, and capital in property development
    b. investment of time, expertise, and equity by entrepreneur
  30. rights of use, control, and occupancy, limited to the lifetime of a party (or life tenant)
  31. a. the time the property was available for sale in the market
    b. always presumed to occur before the effective date of the appraisal (always retrospective)
  32. run north and south
  33. a sale between unrelated parties under no duress
  34. property taxation based on the value of a property
  35. value of a property interest to a particular investor based on their specific requirements
  36. concept that value of a particular component is measured in terms of the amount it adds to the value of the whole property or how much it would decrease the value if it did not exist
  37. a. real estate is only asset of land trust
    b. title is conveyed to trustee, trustor is also beneficiary.
  38. identifiable tangible objects that are considered by the general public as being "personal"
  39. addresses potential issues a claim might get from a particular party, used to clear a defect in the title.
  40. a. the type and extent if research and analyses in an assignment
    b. the second step of the valuation process
  41. the use of an appraiser's reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment
  42. focus on changes in demographics, social trends, and attitudes
  43. a. the central bank of the U.S. acting to provide the U.S. with a safe, flexible, and stable financial system
  44. a good faith deposit made by a purchaser as a consideration component of a binding contract
  45. a. physical raw land and all things that are a natural part of the land, including appurtenances
    b. when attached to land, improvements become real estate
  46. pertain to properties touching a lake or pond (non-flowing water), with emphasis on use of the shore
  47. inherent power of gov't to regulate property in order to protect public health, safety and general welfare
  48. the act or process of developing an analysis, recommendation, or opinion to solve a problem, where an opinion of value is a component of the analysis leading to the assignment results
  49. a. a cooperation that owns the real estate and offers shares to prospective tenants
    b. operating expenses, mortgage payments, insurance and taxes are paid by coop budget
  50. aka an average
  51. involve control and regulations
  52. having adequate ability to perform an assignment and produce credible results
  53. use of property based on the assumption that the parcel of land is vacant or can be made vacant
  54. principle that real property value is created and sustained when the characteristics of a property conform to the demands of its market
  55. monetary relationship between properties and those who buy, sell, or use those properties
  56. characteristics...
    1. possessory
    2. defined period of time or specified conditions
    3. possessory rights revert back to owner
  57. a. a charge against property in which the property is the security for payment of the debt
    b. types
    1. general lien
    2. specific lien
  58. the client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report
  59. system that refers to parcels' lot and block numbers, which appear on recorded maps and plats of subdivided land
  60. the cash an individual or entity places into an investment
  61. the degree, nature, or extent of interest that a person has in land
  62. a neighborhood characterized by homogenous land use, i.e. apartment, commercial, industrial, agricultural
  63. successive increments of one or more agents of production added to other agents will enhance income at an increasing rate until a max return is reached. then, income will decrease until increment of value becomes less than added agents of production
  64. mathematical object that changes
  65. in terms of finding the mode, the numbers must first be arranged in ascending or descending order
  66. 1. gov't and legal
    2. economic
    3. social
    4. environmental and geographic
  67. a. has both dominant and servient estates
    b. passes with title to dominant estate
  68. opinion of the amount of time it might take to sell property interest immediately after the effective date of an appraisal
  69. a. subject to occurrence or non-occurrence of a specific event.
    b. two types are estates that...
    1.. are qualified by special limitation
    2.. subject to a condition subsequent
  70. second or third mortgage tier lien that comes behind the first mortgage in lien priority
  71. land not needed to serve or support the existing improvement, and may be sold separately
  72. interest earned on the original investment amount and on previously earned interest
  73. complete set of all items in a specific category
  74. the degree to which an asset or security can be bought or sold in the market without affecting the asset's price
  75. right of survivorship; ownership is passed to surviving tenant
  76. a claim or liability that affect or limits the title to a property
  77. buyers and sellers of a particular real estate and the transactions that occur among them
  78. a compound interest factor that indicates how much $1 due in the future is worth today
  79. sole ownership by individual or entity where owner has no restrictions on how the property is sold to another party
  80. a. measures that include direction and distance.
    b. all intermediate points of a parcel of land
  81. local laws that implement comprehensive plan and provide regulation and control of land and structures within a district
  82. changes in neighborhood use, i.e. agricultural to residential, residential to commercial
  83. a. ownership interest held by a landlord with rights of use and occupancy conveyed by lease to others.
    b. these rights are specified by contract b/w lessee and lessor
  84. the cost of opportunities not chosen, like the cost of not buying a cheaper property
  85. a. terminal points that can be landmarks or monuments.
    b. courses or angular direction between each point
  86. generally, liens follow priority order based on when they were created
  87. process by which gov't takes away privately held land for public use
  88. when a property owner dies with no heir, it is turned over to the state
  89. equipment (machinery and tools) and buildings and infrastructure that can produce other goods
  90. net income that remains after the costs of various agents of production have been paid
  91. the lessor (landlord) pays some or all of the operating expenses
  92. purchaser's wish for an item to satisfy their needs or their wants beyond essential things
  93. present or anticipated undersupply of an item, which directly effects value
  94. the ability of a person or group to participate in a market with cash or its equivalent
  95. run east and west
  96. principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium
  97. a. for married individuals
    b. each spouse has equal interest in property
  98. one who estimates officially the worth or value or quality of things
  99. any permanent structure on real property, or any work on the property which increases its value
  100. a. tells us where money flows over time
    b. money deposited is negative, money withdraw is positive
  101. system that refers to the parcel's boundaries, formed by the POB, bounds, and metes
  102. divided or undivided rights in real estate that represent less than the whole interest
  103. a. presumes the transfer of property rights
    b. rights conveyed are not identified in market value definition, appraiser must identify ownership rights in the appraisal
  104. a. a clause found in legal instruments and conveyances that creates a new right or interest on behalf of the grantor.
    b. may include mineral rights, rental income, or easements.
  105. corporation or trust that combines capital from many investors to provide financing for all forms of real estate.
  106. horizontal row of townships
  107. condition of dying with a will
  108. the right to undisturbed use and control of designated air space above a specific land area
  109. article that was once personal property but has been attached to the land or building and has become part of the real estate
  110. rights include land, water, or anything attached to the land, natural or man-made
  111. rights above land (air rights), including...
    1. right to construct buildings in air space
    2. right to control/view solar access
    3. right to lease or sell these rights
  112. ...
  113. the first step of valuation process, which includes six elements

    1. client and any other intended user
    2. intended use
    3. type and definition value (a.k.a. purpose)
    4. effective date
    5. subject of assignment and characteristics
    6. assignment conditions
  114. a. lines that run east and west at 6-mile intercals north and south of a baseline
    b. form north and south bounds of townships
  115. a. most complete form of ownership
    b. unlimied duration
    3. only government can possess
  116. middle number of a set
  117. a. assessment against against real estate levied by a public authority to pay for public improvements. example is sidealks or sewers
    b. aka betterment tax
  118. process of community change in which middle- and upper- income persons purchase properties in a neighborhood and renovate or rehabilitate them, causing property values to rise and often displacing poorer residents
  119. value of a property according to tax rolls in ad valorem taxation
  120. private or public partnership that pools funds for acquiring and developing real estate projects
  121. binds the grantor a deed and heirs to defend to defend the title conveyed to the grantee and their heirs against lawful claims of all persons
  122. cost of acquiring raw land begins process of adding value to real estate
  123. interests, benefits, and rights inherit in the ownership of real estate
  124. a written, legal instrument that conveys an estate or interest in real property to someone else
  125. rights below land, including
    1. right to use and profit of underground property
    2. extraction of minerals
    3. construction of tunnels, subways , sewers, basements
    4. solid mineral rights
    5. oil and gas rights
  126. each equals about one mile square, where each township is divided
  127. pertain to properties touching a river or stream (flowing water), with emphasis on use of the flowing water
  128. result of the cause and effect relationship among forces that influence real property value
  129. a. real estate is transferred to another person to manage for benefit of a third party
    b. players are trustor, trustee, and beneficiary
    c. types of trusts
    1. living
    2. testamentary
    3. land
  130. a. land
    b. labor
    c. capital
    d. entrepreneurial coordination
  131. a. the interaction of supply and demand
    b. moderate profits attract healthy competition
  132. conversion of benefits received in the future to present value
  133. created by agreement while property owner is alive
  134. vertical column of townships
  135. grandfathered use
  136. condition of dying without leaving a valid will
  137. a. owner holds fee simple title to individual condo unit
    b. owner holds undivided interest in common elements
    c. condo can be high-rise, townhome, or detached
  138. the act or process of developing and communicating an opinion about another appraiser's work
  139. market value is expressed as this, these three words must be present in the definition of market value
  140. a. generally presents a "what if" scenario
    b. a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used in for the purpose of analysis
  141. difference between highest value and lowest value in a data set
  142. a. legal contract that permits but does not require the holder of the option (optionee) to buy, sell, or lease the property for a said period of time
    b. an agreement to make a contract
  143. the balance point where supply and demand meet
  144. a. land areas that are not divided into quarters of a quarter due to size or location
    b. usually lie along n. and w. borders of township and edges of rivers
  145. the price that would be received to sell an asset or paid to a transfer liability in an orderly transaction between market participants at the measure date
  146. principle of conformity that states that value of an inferior property is enhanced by association with better properties of the same type
  147. a financial payment, special benefit, or non-realty item included in the sale contract or rental agreement as an incentive
  148. erosion of the purchasing power of currency characterized by price escalation and an increase in the volume of money
  149. a. agreement granting privilege to use property
    b. not an estate or interest in land
    c. not assignable, cant be sold
    d. personal agreement granted for specific time
  150. a. total dollar expenditure to develop an improvement
    b. a fact
  151. a. property is held by two or more people and has four types...
    1. tenancy in common
    2. join tenancy
    3. tenancy by the entirety
    4. community property
  152. appraiser's obligation to

    1. protect public trust
    2. develop work that is meaningful and not misleading
    3. when acting as appraiser, must perform ethical and competent assignments
  153. plays a significant role in how investments compete against each other
  154. a. a type of value for insurance purposes
    b. based on cost of physical items subject to loss, mainly which are improvements
  155. the tenant pays all operating expenses
  156. characteristics...
    1. present or future possession
    2. indeterminate duration
    3. ownership

    types:
    1. fee simple estate
    2. life estate
  157. concept that land can't be valued on the basis of one use while the improvements are valued on the basis of another
  158. articles placed in or attached to rented buildings by a tenant to carry out the trade or business of the tenant, always personal property
  159. a loan secured by the collateral of some specified real property, which obliges a borrower to pay
  160. allows for open space between two land uses
  161. interest in each period is calculated based on the original deposit or investment, and it doesn't compound
  162. 2 or more people own a property, assumed to be equally divided among the two
  163. a. a building development built for complementary use
    b. not an ownership type
    c. housing, schools, recreation, retail
  164. when several similar commodities, goods, or services are available, the cheapest one will attract the most demand
  165. the objective of an assignment, to develop an opinion defined value of any real property interest
  166. 1. riparian rights
    2. littoral rights
    3. unrestricted right to use water that adjoins property
  167. the ability of a product to satisfy a human want, need, or desire
  168. a. parts of condo real estate inside and outside the building
    b. can include land, pools, tennis court, elevators, gym, laundry rooms
  169. a. divides land into townships and ranges about 6 miles square
    b. normally have 36 one-sq-mile sections of 640 acres
    c. system used in florida, alabama, mississippi, and all states north of ohio river or west of miss. river except texas
  170. a. benefits a legal person or entity and not a particular tract of land
    b. has a servient but no dominant estate
  171. a. gov't lines that extend north and south at 6-mile intervals and are numbered east or west from principal meridian.
    b. form north and south bounds of townships
  172. use that should be made of a property as though it exists
  173. interaction of buyers and sellers trading long-term or intermediate-term money instruments
  174. used to authorize property for modification outside normal zoning for property
  175. a group of complementary land uses; a congruous grouping of inhabitants, buildings, or businesses
  176. a. a purchaser of real estate agrees to pay a portion of the purchase price when the contract is signed
    b. primarily protects the seller's interest in unpaid balance
  177. most frequently occurring number
  178. provision written into a deed that limits the use of land, usually remains in effect when title passes to next owner
  179. aka CERCLA, when landowners had a hazardous material released on their property, they were held liable for the contamination
  180. a future interest held by someone other than the grantor entitling a remainderman to an estate after a prior estate or interest has expired
  181. the cost of overall development, which includes project coordination and supervision
  182. a. a common concession that appraisers adjust for when analyzing comparable sales.
    b. intended to buy down the interest rate of the buyer's mortgage
    c. one discount point = 1% of the mortgage amount
  183. established by will of property owner after their death
  184. perception that value is created by expectation of benefits to be derived in the future
  185. a. principle that economies outside a property have a positive effect on its value
    b. two types: positive and negative
  186. a. exception to general zoning regulations
    b. permits specific, small parcels of land to be zoned for use not permitted to surrounding area
  187. an appraiser must

    1. correctly employ recognized methods
    2. not make a substantial error or omission that effects an appraisal
    3. not render appraisal services in a careless manner
  188. created by law rather than choice. property tax lien is example
  189. the distance, in time and cost, to get to and from certain public buildings
  190. temporary use to which a site or improved property is put until it is ready to be put to its future highest and best use
  191. annual crops such as corn, wheat, and vegetables
  192. legally binding agreement between two or more parties that represents their promise to do or not do a particular thing
  193. services pertaining to aspects of property value
  194. ...
  195. a. area between two township lines and two range lines
    b. contains 36 sections of 640 acres each
  196. an analytical process in which the sale price of a transaction with nonmarket financing is converted into a price expressed in cash terms
  197. the money an individual or entity has borrowed
  198. written document signed by a byer and seller who agree to the transfer of ownership interests in real estate
  199. something added or attached to a property that becomes an inherent part of the property, usually passes with the property when the title is transferred
  200. involuntary transfer of property that where a party makes a property claim by taking possession over a period of years and the owner fails to contest the possession
  201. ??
  202. the price of a real property varies directly, but not necessarily proportionately, with demand and inversely, but not nec. proportionately, with supply
  203. lien that is levied or attached to a specific piece of property