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350 Multiple choice questions

  1. expected future cash flows used in inc appr to est prop V
    inc and balance sheets show prior cash flows
  2. analysis of HIBUSE
  3. 125k x 1.05 = 131250
    131250 / 1.10 b/c its better you divide!
  4. wall that seperates 2 condo units
  5. relat. of final V est to mkt perceptions should be considered
  6. equilibrium in assembling and using factors of production
  7. time distance relationship b/w prop n all other possible origins
  8. confidence interval
  9. lgl interest
    present worth of contract + present worth of reversion
  10. to dvlp est projection of expected inc + EXP that reflect earning capacity
  11. normal distribution
  12. C of restoring item yo new or reasonably new
  13. R may change according to an index of rates
  14. landlord gets more than mkt rents
  15. record keeping and ethics
    reporting record keeping and ethics
  16. leasehold
  17. bldg V + V of land
  18. Ann Depr * age of bldg
    repro C new - PV = accrued Depr
  19. movable= not attached to or assoc w/ real prop- autos, boats, clothes, tools, furn. $$
  20. present worth of $1 to b recv'd in the future
    1 / ( 1+i )^ n
  21. lot n block
    metes n bounds (monument)
    rectangular survey (govt survey)
  22. C to fix > or = increase in V
  23. universe
  24. both parties have equal barganing
  25. L must conform 2 surrounding L use for max V 2 b acheived
  26. residiual inc to L / L cap R
  27. comparative method
    V of site - each comp = V of improv
    V/ A or volume = $ p/ unit measure
  28. req's that AppR must contain sufficient info to understand report properly
  29. net proceeds from sale of asset exceed adjusted C or book V
  30. cash inflow / cash outflow
  31. bldg V * bldg cap R = residual inc to L
    NOI - res inc = residual inc to L
  32. most prob price A/O given date 4 which prop should sell to typical, knowledgable buyer in competitive mkt via arms length
    closely assoc w/ V in exchange
  33. use of Dr CAP to aquire asset
  34. allows dvlpr flexblty of design by allowing mixture of uses n densities. owner holds no int in common A, owner provides fees to maintion common A
  35. prin repaid during life of mtg
  36. NOT movable- attached to or assoc.
    A. tangible= trade fixtures, Emblements,
    B. intangible- mtgs., leases, options, easements NOT DEEDS (real prop conveyed by deeds)
  37. always the same
  38. Release= easmnt holder gives release 2 servient est (quitclaim deed)
    Abandonment= easmnt holder fails to use for specfc time
    Vacation= by court when no need exists
    Merger= dom n serv come under 1 ownrshp
    Expiration= expires after spec x
  39. the sum of
    holds reversion int
    FYI tenant is lessee
  41. corner sites have higher V p/sq ft than other SITES
  42. non-ownershp real prop int grants 2nd pary to use owners Land
  43. is current HIBUSE
    HIBUSE expected to change
  44. NOI - Dr service(mtg pmt)
  45. legally permissable
    phys possible
    financially/ econ feasible
    maximally productive
  46. exception to non inheritable rule based on 3rd party
  47. dividing n selling land 4 specific x use
  48. lg national tenant that occupies space in shopping center
  49. diff b/w $ + net proceeds from any mtg used to purch a prop
  50. adjustments should be made in $ amts or %'s depending on how its derived
  51. establishes the context of the V est
  52. converting PV into FV
  53. land meets STILL water; cant alter the way water meets land
  54. sales comp and inc
  55. Accr Depr
    repl C
    repro C
    Land V
  56. method of lgl description
    distance n direction
  57. leasehold estate likely have no V
  58. V for prop tax purposes
  59. assesed V / mkt V
  60. enforcing govt right of eminent domain
  61. phys structure
    rights of ownrshp
    bundle of rights
  63. combining of 2 or more parcels////////////////////////////////////////////////V resulting from the assemblage
  64. loss in V due to factors outside prop
  65. converting FV to PV
  66. no repayment of prin
  67. AppR REVIEW
    3.1 competancy and dilligance
    3.2 qlty of work under review
    3.3 dvlpmnt of review
    3.4 reporting
    3.6 certifications requirements
    3.7 requirements for oral AppR
  68. application of appr's to V
  69. A measure of the precision of a measure of central
  70. no
  71. MOST PRECISE 4 est repl/ repro C
    system of estimating bldg C by duplicating contractors methods
    DIRECT C: material, labor, equip, etc...
    INDIRECT C: taxes, permits, insurance, surveys, etc...
  72. est prop V based on future income
  73. when lessee subleases and also becomes lessor
  74. L V est its being used under its HIBUSE
  75. L V * L cap R = inc to L
    NOI - inc to L = residual inc to L
    res inc to L / bldg cap R = bldg V
  76. 1%
  77. grouping of similar land uses w/in accepted geo. boundaries
  78. divide inc b/w land and improvement and then capitalize residual inc to improvements
  79. recv'd @end of each period
  80. A branch of statistics concerned only with characterizing, or describing, a set of numbers; the measures used to characterize a set of data, e.g., average, maximum, coefficient of dispersion" is the definition of ____________ statistics.
  81. Able= is owner, leased fee
    Baker= is lessee and lessor (sandwiched)
    Collins= subleesee , subleasehold
  82. relieves borrower from any personal liability
    no deficiency judgment
  83. most restrictive takes effect
  84. date of sale of comp + AppR date
  85. discount
  86. right of govt to assume prop if owner deceased n prop abandoned n no will was left
  87. get % n subtract from 100
  88. owned by 1+
  89. cost to fix < or = increase in value
  90. affect supply n weigh down on dmd
  91. realty
  92. confirms if completed improvements n mkt conditions are consistent w/ earlier prospective AppR
  93. Cost
  94. mkt rent x GRM
  95. voluntary conveyance of title to land from private owner to public
  96. capatilazation
  97. improvements
    the phys structure n attachments
  98. created to secure Dr
    mtg lien: voluntary
    tax lien; involuntary, statutory (HIGHEST RPIORITY)
    ad valorem; specific; prop taxes
    special assesment; improvements (sidewalks)
    fed inc tax ; general
    mechanics; LIS PENDIS; lien on prop having work done
    judgement; involuntary; court order; WRIT OF EXECUTION ; SHERRIFS SALE
    deficiency judgement lien; foreclosure
    race status lien; given priority by recordation
  99. 25 / 15 = 60
    10000 x .6 = 6000
    amt of Depr
  100. prop rights
    finacing terms
    condition of sale
    phys char
  101. is the foundation when calculating Depr. for Cost appr
    can also adjust for sq footage, age, Q3
    Ann. Depr. * age of bldg= Accrued Depr.
  102. appropriateness, qty of evidence, accuracy
  103. safe R for returnn OF Cap
    risky R for return ON Cap
  104. type of V must be defined
    ID any extraordinary assumptions necessary for the assignment
    Appr must not commit an error that can affect the assignment
  105. prin to be repaid during life of mtg
  106. sales comp / mkt
  107. FNMA abnd GNMA
  108. transfers ownership of personal prop
  109. int or V owner has in RE
  110. land owned 4ever n can be passed on
  111. analyze agreement of sales, options, listings
  112. land meets FLOWING water;if navigable prop ends at low water mark; if un- navigable prop ends at middke of water
  113. amt recv'd when rented in open competitve mkt
  114. lender participates in inc of mtgd prop beyond a fixed return
  115. applications of apprch to V
  116. land is not inheritable
    land is sovereign
    only for lifetime
  117. not protected by fha
  118. dominant uses prop of serviant; always held by dominant
    ex. a driveway that runs thru serviant so dominant can access their driveway
  119. actual $ paid in transaction
  120. transfers ownrshp of real prop
  121. when prop is new
  122. = 2+ owners = carrys survivorship- same title 2 undivided int- reqrs pitts= may sell int w/out consent of co-owners= new ownr bcomes tenant in common with remnng joint tnants= no corporations= can b partitioned= no dower rights in invest props
  123. inc / $ales price
  124. possession= undivided int tenancy in common
    interset= equal ownership
    time= aquire at same time
    title= aquire w/ same title
    survivorship= transferable
  125. improvements cannot be V'd based on uses diff. from Land
  126. V
  127. lesser of contract price or AppR'd V
  128. RE mkts not perfect n highly competitive
    exact data 4 approach to V may not b avail
    diff applications to approaches to V may result in diff est of V
  129. NOI / mtg pmt
  130. attachment otherwise personal propert
    adaptation= adapted to real prop
    agreement= b/w buyer n seller trumps both
  131. improvements cannot be valued based on use diff from land
    important in temprary or interim use
  132. self contained - describe- intended users other than client
    summary - summarize- state real prop interest
    restricted use - state- client only user
  133. should be similar to subject in: size, age, cond, sld as recently as poss to AppR date
    must be adjusted to subject prop 4 differences that can be IDd br AppR
  134. paired data set
  135. a pre existing use that doesnt conform to zoning
  136. cash outflow - cash inflow
  137. protects against forged docs, defctv title, encumbrances, liens= most cover mtgee (mtg co)
  138. ID type n def of V
    dvlp reasonable exposure x
  139. annual NOI / annual mtg pmts
    most often used 4 investment criterion
  140. lender who makes loan
  141. 2 parties 1 wall
  142. fixed= do not vary w/ occupancy
    variable = vary ww/ occupancy
  143. how to assess prop tax
  144. diff b/w
    econ life - remaining econ Life
  145. OBSO
  146. Emblements- personal prop. Ex corn n wheat
  147. automated valuation model
  148. cummulative inc = initial investment
  149. actual date in AppR report
  150. Cost approach
  151. NOI / PGI
  152. V of prop created when there is equilibriium in supply, dmd, location of RE
  153. FV{ i / [(1 + i) ^n - 1]} = pmt
  154. - ammoratzation loans
  155. landlords/ lessors lgl right to aquire ownership to all that is asdded intentionally or by mistake (carpeting)
  156. existing use is only reasonable use
  157. allows 4 ammoratzation
  158. equal int aquired thru marriage= not b4 marriage or thru will or gift
  159. NOI / Ann Dr (mtg pmts)= DCR
    Mc LTV DCR = overall return
  160. police power
    eminent domain
  161. remaining 40 - total 50= 10 / total 50 = 20%
  162. $ ( 1- LTVR) = #
    # / b4 tax cash flow = EQ dividend
  163. fixture
  164. GRM
  165. eff age + remaining econ life = #,
    # / remainiing econ life
  166. process of dvlpg anlysis, reco or opinion to solve prob where opinion of V is component, also dvlp reasonable exposure x
  167. $ales price/ income
  168. risk to Dr financing
  169. longer than standards
    many followed by explanatory comments
    adherence req'd
    more specific in direction
  170. unit in place
  171. 80000 (1.04 ^ 3) = 89989
  172. land recieves any surplus inc after providing return on bldg
    inc attributable to land rent that remains after labor, capital, n mgmt compensated
    net inc remaining after agents of production satisfied
  173. V to a TYPICAL investor
  174. NOI - Dr / Equity
  175. amt of rent paid OVER BASE in a percentage
  176. unauth. intrusion or trespass by L
    extension of improv or object such as bldg or driveway across lgl boundary of adjoining tract
    remedies incl $ damages n improvmnt
  177. AppR should apply all appropraite units of comp, explain all differences for wide variation of results and pick most reliable
  178. excess of contract rent over mkt rent
  179. when overall R calc by using info directly from sales comp
  180. loan pmt / loan amt
  181. state intended use, state ID of client, state any intended users by name or type, state type or def of V
  182. influences outside of a prop will have effect on its V
  183. prop rights
  184. should not be used as comp
  185. lump sum investor recieves at the end of investment
  186. pers prop permanantly attached to RE to become real prop
  187. AppR who resolves dispute in regard to speciffic opinion of V
  188. covers 2 or more parcels
  189. econ age life
    modiffied age life
    sales comp
    break down
  190. fin teq when dvlpr bldr or seller make payment to lender to reduce loan pmt 4 purchaser
  191. involves repayment of prin n int
    may be fully or patially ammortized
    amt of ammortization is influenced by length of x over which loan is to be repaid
  192. purchasing power
  193. unit in place
    Qty survey method (most accurate)
    comparative unit method
    NOT! breakdown (its 4 Accr Depr)
  194. V / EGI
  195. can b terminated at any time
  196. $#.## / $100 = ## mills
    assesed V
    $2.10 / $100 = 21 mills
  197. The difference between an observation and the measure of central tendency for that array, without regard as to the sign of the difference
    just dont use it!
  199. EQ div
    pre tax - cash flow
    b4 tax - cash flow
  200. recv'd @ beginning of each yr
  201. NOI / R
  202. sole ownrshp
  203. An estimate of the variation likely to be encountered in making forecasts based on a regression equation
  204. unbiased opinion of the nature qlty V or utility of an int in RE or related personalty
  205. IDs items that contribute to a concise AppR
  206. RENTAL
    TENANT is LESSEE (personal prop)
  207. borrower is MORTGAGOR
    lender is MORTGAGEE
  208. T Accr Depr is the loss in V from phys deter., Fn obso, or econ obso. HIBUSE cant be residential even if its being used as 1
  209. req's AppR to define V to be est., both lvl of info n content to b addressed, communication must be in a manner not misleading, real prop AppR must contain certification,
    content n lvl of info req'd in report
    report in way which is not misleading
  210. employer signing report is as responsible for for contetnt n conclusion as is person who prepared it
  211. exp / egi
  212. Accr Depr
  213. done aafter all 3 appr complete
  214. no repayment of prin,
  215. est V of land + Depr V of improv
  216. exp / egi
  217. may be lower for res n higher for commercial - varies.
    use corner influence tables for mass appraisals
  218. recipricol of overall R
    if R = 8%
    1/ .08 = 12.5
  219. operating expenses
  220. lgl rights to remove topsoil or coal
  221. discounting
  222. reqrs only unity of poss.= undivided int in prop= hold separate titles to undivdd int= no survivorship- is inheritable- no unity of int so shares may be equal or not- if no specific form of ownrshp = ten in common= can b partitioned
  223. rights of ownership= bundle of rights
    use, possession, enjoyment, disposal
    includes all benfits interests and rights from ownership of RE
  224. govt right to aquire prop w/out consent of owner 4 public use via compensation
  225. ID client but not other intended users
    base rent projections and EXP on public record data
    explain exclusion of any unusual V appr
    Appr must not render services in a careless manner
  226. L thats been improved
  227. V of component part or peice of prop that adds to T V
    ex. sqft, age,
  228. break down method measures 5 types of Depr
    1 curtable phys deter
    2 incurable " "
    3 curable Fn obso
    4 incurabl " "
    5 external obso
  229. voluntary
  230. existing loan is engulfed and lrgr new loan is made
    "its wrapped @"
  231. regarding reconciling the AppR
  232. sales price / rent
    rent / price = GMRM
  233. own no prop, buy stock to obtain lease, title held by non profit corp., tenants assoc makes rules, lgl rights n int considered personal prop
  234. amt borrowed - equity = V
  235. A measure of the precision of a measure of central tendency" is the definition of
  236. measure SAMPLE
  237. annual Dr service / loan amt
  239. the mean
  240. V * R
  241. mgmt EXP
  242. assesed V prop to measure mkt V
  243. dvlpmnt of real prop consulting
  244. IMPROVEMENTS CANNOT be valued based on use DIFFERENT from land
  245. 43560 sq ft
    640 acres
    36 sq miles, 6x6 miles, 36 sections
    QUADRANT= 1/4 of section
  246. diff b/w bldgs repro or repl C n mkt V on AppR date
    repro/repl C - AppR V
  247. req's AppR in review in AppR n reporting results of that review must dvlp n report credible opinion as 2 qlty of other AppR work
  248. based on prin of anticipation
  249. to study relationship b/w sales price n prop characteristics such as sqft, age to determine adj $ sales comp appr
    to complete mass AppR of res. A
    to test effect of flood on home V most similar to sales comp appr
  250. lgl form of ownership, hold int in common A, fee int in units, occupy air lots, state laws= horiz prop, strata title, condo act
    part of horiz prop regime
  251. PMT[( 1 + i) ^ n] / i = FV
  252. has start n end date
    can b 4 any amt of x
  253. floor space that may be rented to tenants
  254. N* I/Y divide!!
    semi N*2 i/y / 2
    quarterly N*4 i/y / 4
    monthly N*30 i/y / 30
    daily N* 360 i/y / 360
  255. written instrument that acknowledges a Dr n promise to repay obligation
  256. repayment of Dr over x in series of periodic pmts
  257. ror on cap used to convert Fpmts into PV
  258. lmt on oper expense paid by owner
  259. uspap rule for MASS AppR
    leasehold and opinion
  260. 5/1 x 1/4 = 20 stories
  261. 50 x 1.08 = 54.
    54 x .89 = $ 48.06
  262. borrower
  263. compensation not contingent
    no one provided assistance
    AppR has/ has not made personal inspection
  264. Private grant= agreement b/w owner and easement holder
    Prescription= aquire thru hostile uninterupted possession 5 - 20 yrs
    Condemnation= govt eminent domain
    Reservation= reserves easement in deed and conveys to another party
    Necessity= prevents from being landlocked (no acces to street)
  265. NO, paid % of inc (EGI)
  266. tenant pays taxes insurance and maintanence; all oper exp pais by lessee; lessor recv's fixed, guaranteed amt of annuity
  267. NOI / LOAN ( Dr service of mtg)
    indication of riskiness
    lenders want 2 make sure NOI is enough to cover dr services w/out tapping owners capital to repay
  268. analysis of economic activity of a community that allows it to attract income from outside its bouondaries
    poopulation, demographic, int R, date
  269. avg
  270. condition
    prop rights
    NOT C
  271. multi parcels of RE under 1 mtg allows dvlpr or owner to sell a parcel
  272. .5 x 25000= 12500
    12500 x 9 = 112500 Accr Depr
  273. "according to V"
  274. method off lgl description
    ht, lat, long., rivers streams ...
  275. they r both based on info from sales of other props
  276. movable items
    all benefits from ownrshp of phys structure attached to the land
  277. $ / MONTHLY rent
  278. not business, terminates w/ death, doesnt run w/ the land, not revocable
  279. increase in outstanding balance of loan from failure to pay periodic Dr service
  280. A w/ central city and a specified population
  281. congress
  282. FV { 1/[ 1 + i] ^ n} = PV
  283. 2200 x 55 = 121000 x .94 = 113740 x (1.05)!!! = 119427
    repl C
  284. economic life
  285. 1. tax% x AppR V = V
    2. V - exemptions (if any)= V
    3. V x mills = tax bill
    (.0## or ## mills)
  286. diff est in V
  287. lessor / landlord pays prop txs, prop ins, and maintenance
    tenant pays exp such as txs, ins, maint.
  288. V / PGI
  289. V down
    V up
  290. personal right to use land of another
    only has servient estate
    utility companies(transfers w/ sale)
    overall R = M Rm + (1-m) Re
    M= laon V / prop V
    Rm= Mc
    Re= EQ div R
  292. allocation of V b/w land n bldg
  293. used to find fee simple V of prop
    C commanded by factor of production or inelastic supply
  294. Fn or external
    loss of V w/in prop from all causes EXCEPT phys deter.
  295. deed restrictions
    law of nuisance
    eminent domain
    NOT supply (econ)
  296. pgi
    - vac n collection losses
    + other inc (ancillary [parking, vending])
    = EGI
  297. when analyzing data
  298. middle #
  299. C appr
  300. interest only
  301. C appr
    eff. age / T econ life (econ useful L)= age life
    C new * age/ L = Accr Depr
  302. INT R
  303. not permntly attachd( not affixed), can b tangible, aka chattel, prop that can b moved, rights held < lifetime, personal prop but not perm attached
  304. transfers ownrshp int in real prop= act of transfer is grant = must be = must be written n signed by grantor(party transfering)=consideration= must b 18 yrs n competent= must name grantor n grantee= party recvng is grantee- grantee must have sound mind= may use ficticous name but has to again when transferring out= grant or convey words of conveyance or granting clause= if in poss of grantee presumed delivered= if recorded delivrd n accepted= date not necsry= grantees signtr not necsry
    hAgendum clause optional= warranties in a deed affect certnty that title is sound
    Gen warranty provides greatest warranty to title status
    Covennt seizing grantor owns prop n has right to convey it
    Covnnt against encumbrncs states whatever encumbrances in the deed
    Quiet enjoyment warrants that grantees ownrshp will not b challenged
    Further asstnc obligates grantor to perform whatever nec to protect title being convyed
    Covnt of warrnty of title is grantor will defnd title against others claims
    Special warranty deed inc covnt against ecumbrances
    Bargain n sale deed
  305. charecterize POPUATION
  306. ratio of props 1st yr cash flow to amt of EQ recv'd
  307. sequence for adjusting sales comp
    prop rights
    physical chara.
  308. conformity
  309. precision n accuracy of data
  310. method 4 calc Accr Depr
  311. method of lgl description
    used typically in subdivisions drawn by surveyor n IDd by #, maps filed w/ govt
  312. tenant remains in prop w/out consent of landlord
  313. Cost approach to V is based on:
  314. final V to est mkt perceptions
  315. husband and wife
    cannot be partitioned
  316. conduct
    record keeping
  317. refers to internal ror
  318. V of Land = 150k x .24= 36k
  319. measures T sqft or cubicft and multiplies by current costs
  320. encroachment via airspace
  321. rent that is above guaranteed minimum rent resulting from % lease
  322. should be COMPETITIVE w/ subject
  323. b4 tax cash flow / equity div R
  324. V to investor that may or may not be typical
    V based on specific goals
  325. array
    interest in land
    FEE SIMPLE: most common only ltd by govt police power rights
    FEE ESTATE: held 4 lifetime n inheritable
    QUALIFIED FEE AKA FEE SIMPLE DETERMINABLE "as long as" created to exist until some occurance or particular event
  327. req's int + prin equally in each pmt
  328. 75% of sales have Mc 10%
    25% remaining req.15% EQ.DIV.R
    (.75.1) + (.25.15)= R
    .075 + .0375 = .1125
    (# %) + (# %) = R
    used to calc Ro (overall rate)
  329. stabilized exp/ gross inc = OER
  330. special purpose props when continuation of that special use is assumed
  331. uncertanty in rents
  332. dower- wife recv's upon death
    curtesy- husband recv's upon death
    homestead protection provides protection to widow/er
  333. paired sales
    multiple regression
    graphic analysis
  334. loss of V from all causes w/in prop EXCEPT phys deterioration
  335. lmts use of RE
  336. set of %'s indicating proportion of site V attributable to each amt of depth in the lot
    do not rely on w/out 1st testing mkt behavoir
    used by tax assesors to est V of parcel of Land
  337. dvlpg business AppR
    reporting business AppR
  338. "AS LONG AS"
    created to exist until some occurance or particular event
  339. repro C
    - sales comp OR inc apr
    = Accr Depr
  340. series of periodic pmts or reciepts
  341. EGI - exp
    its an exp
  342. lgl int that can b divided n sold seperatly
    adds 2 V
  343. right, priveledge, improvement asssoc. w/ land
    runs w/ the land
  344. trees n uncultivated veg + landscaping- REAL PROP landscapng
  345. detailed analysis to determine most profitable use n likelihood of success
  346. personal property
    reporting personal prop
  347. linear distance of piece of L along street, lake,river H'way etc....
  348. PV (1 + i)^ n = FV
  349. V
  350. affects dmd