Course Review Quiz Flashcards by 62223 .

The ___ has oversight authority over state appraisal boards:

ASC.

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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

This analysis can only be applied if there are no existing improvements

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Real Estate includes all of the following except:

land
buildings
property rights
trees

Property rights. Property rights are part of real property, not real estate

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The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires is the definition of

Leased Fee Interest

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All of the following could be participants in a real property market except:

Sellers
Landlords
Appraisers
Assessors

Assessors

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In analyzing real estate purchase contract, you should be able to find all of the following items except

sale price
legal description
date of sale
amount of property taxes

Amount of property taxes

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Your property, which consists of a house and lot, is valued at $244,000. 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?

$93.53
244,00 x .8 =195,200
195,200 x 0.0575 =11,224
11224 divided by 12 (months) = 935.33
Carry decimal to the left one place. 
$93.533

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In appraisal, the concept that a higher-priced property will be worth less in a lower-priced neighborhood than it would in a neighborhood of comparable properties” is the definition of the principle of

Regression

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You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the down payment and the loan points?

$30,376.63
(1 mortgage point=1%)
243,500 x .90 = 219,150
219,150 x 0.0.275= 6,026.63
down payment = price- loan
243,500-219,150= 24,350
down payment + loan points
24,350 + 6,026.63 = 30,376.63

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“Trespassing on the domain of another” is the definition of

Encroachment

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All of the following would be social influences on value EXCEPT

Age of residents
Educational facilities
Family formations
Population trends

Educational facilities

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“A firm agreement to perform an act, refrain from acting or make a payment or delivery” is the definition of

Promise

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All of the following would be considered to be economic influences on value EXCEPT

interest rates
zoning
unemployment rates
Consumer Price Index

Zoning

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Which of these factors would result in a violation of USPAP if the appraiser based his or her appraisal fee on it?

the appraiser’s value opinion
the borrower’s estimate of value
the square footage of the home
none of these

The appraiser’s value of opinion

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Which is NOT an economic force affecting property values?
wage rates
transportation
expense levels
Consumer Price Index

Transportation

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“The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc.” is the definition of _________ rights.

Subsurface

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Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the mean sale price?

$174,979

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A facade easement is a type of_______________ easement.

Historic Preservation

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Electronic Data Interchange for transmitting appraisal reports became popular in the (date)

Late 1990’s

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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 median of these indications?

$962.50

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USPAP includes performance standards for the appraisal of

real property, personal property, and business/intangible property

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What is the mode of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)

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“A right or interest in property” is a(n)

Estate

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The median price of homes sold in your county nine months ago was $217,400. Prices have been increasing at the rate of 8% per year. What is the median price of homes today?

$230,444
8% (8 IN CLAC) per year ÷ 12 months = .667-> Rounded .67.
9 months X .67 = 6.0%
$217,400 X .06 = $13,044
$217,400 + 13,044 = 230,444
OR 
217,400 x .08= 17392
17,392 / 12 = 1,449.333
1,449.33 x 9 = 13,044
13,044 + 217,400 = 230,44

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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

Real Estate

A(n) __________ contract is one that is not been fully performed or completed.

Executory

Mary Jones has a property with no road frontage. She has an access right of way across the property of her neighbor Bob Smith for ingress, egress, and regress. Who has the dominant tenement in this situation?

Mary Jones

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?

146.62

The Federal Reserve can influence the level of economic activity by - regulating the availability of money - regulating the rate of interest - neither of these - both of these

Both of these

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 mean of the GRMs?

139

The appraisal standards and qualification 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

Government Agencies

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

Salvage

Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of - transferable development rights - easement in gross - subsurface rights - easement appurtenant

Transferable Development Rights

In the 1970s, who developed uniform rules for mortgage underwriting? - FIRREA - professional appraisal organizations - the Appraisal Subcommittee - Fannie Mae and Freddie Mac

Fannie Mae Freddie Mac

Which entity is responsible for making periodic changes to USPAP? - Appraisal Standards Board - Appraiser Qualifications Board - Appraisal Practices Board - Appraisal Subcommittee

ASB. Appraisal Standards Board

You apply for a mortgage. The lender will allow you to spend up to 28% of your annual income for housing costs, including your mortgage, property taxes, and insurance. Your income is $1,472 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?

52 weeks in a year divided by 2 is 26. 1,472 x 26 = 38,272 38,272 x .28 = 10,716,16 (28% of the annual income per yr) 10,716 divided by 12 (months) =893.01 monthly payments

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?

A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the acreage amount to two decimal places

``` 43,560 sq feet = 1 acre 178 x 464 = 82, 592 ft 82,592/43,560 =1.9 80,000 x 1.90 = 42,105 answer 42,105 ```

``` The real property market is generally classified as a(n) __________ market. perfect imperfect segregated distressed ```

Imperfect

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

written or oral, client

“The rate at which vacant space in a property or a group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time” is the definition of a(n) __________ rate. - feasibility - absorption - lease-up - saturation

Absorption

Under the current qualification criteria, an applicant for Appraiser Trainee must have completed ___ creditable hours of experience.

0 hours of experience

What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95?

35.5

The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT - ASB - FDIC - OCC - FRB

ASB

The primary purpose of USPAP is to protect - appraisers - lenders - homebuyers - public trust

Public Trust

Which is NOT a requirement of a valid deed? - must be in writing - property adequately described - consideration stated - must be recorded

Must be recorded

3.15% is the same as - 3.150 - .3150 - .0315 - .00315

.0315

A lot measures 248.4 feet X 378.90 feet. How many acres is that?

2.16

75 Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the median sale price?

$174,500

"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

Leasehold Estate

Which is the fullest and most complete type of estate? leased fee life estate leasehold fee simple

Fee Simple

A lot measures 316.4 X 428.90. How many acres is that?

3.12 acres

Which of the following would be PRIVATE restrictions on property rights? - taxation and police power - easement and eminent domain - escheat and easement - deed restriction and mechanic’s lien

Deed restriction and mechanic's lien

The website with the largest amount of demographics information is - First gov.gov - Demographics.com - Bls.gov - Census.gov

Census.gov

What is the median of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)

94.5

A client has requested that an appraiser value a property that is improved with an old dilapidated single family home, and asks the appraiser not to mention the existence of the home in the appraisal report. Which statement is TRUE regarding this situation? - The client has violated USPAP. - The appraiser must avoid mentioning this structure in the report. - It would be misleading if the appraiser did not disclose the existence of this structure in the report. - USPAP does not address this issue.

It would be misleading if the appraiser did not disclose the existence of this structure in the report.

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

The Appraisal Subcommittee

Your property, which consists of a house on a lot, is valued at $186,000. You want to insure it for 80% of value. Insurance will cost $6.00 per thousand per year. How much will your insurance cost per month?

186,000 x .80 = 148,800 148,800 x .006 = 892.8 892.8/12 (months) =74.4 Answer: $74.40

Short term money instruments are traded on the - money market - capital market - commodities market - New York Stock Exchange

Money Market

A property is owned as tenancy in severalty. How many owners are there?

1 owner | Severality= severed (not several)

``` The intent of USPAP is to ____________ a high level of __________ in professional appraisal practice. promote, quality promote and maintain, public trust foster, professionalism accommodate, professional ethics ```

promote and maintain, public trust

An appraisal is best described as - an opinion of value - the estimated cost to -replace a property - a guarantee of the true worth of a property - an estimate of value

An opinion of value

A circle contains _______ degrees.

360 degrees

Who is responsible for appointing members to the ASB and AQB? - the Board of Trustees - the ASC - the President of The Appraisal Foundation - the Secretary of HUD

Board of Trustees

The four components of the Appraiser Qualification Criteria are:

qualifying education, examination, experience, continuing education

As part of the overall requirement for continuing education, certified and licensed appraisers must complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s).

every 2

Twenty years ago, most appraisal reports that were sent electronically were sent using _____ technology; today, most appraisals are sent electronically using a _______ format. PDI, PDF EDI, PDF PDF, EDI EDI, JPG

EDI, PDF

``` Low interest rates encourage __________, while high interest rates encourage _________. buying, selling borrowing, saving saving, borrowing selling, buying ```

borrowing, saving

When comparing printers, make sure to compare the cost per - letter - saved page - printed page - line

Printed Page

A problem with the real property market is that the amount of ________ is slow to change. - demand - new customers - supply - supply and demand

Supply

Which of the following would NOT be considered a negative easement? - access right of way - conservation easement - drainage easement - historic preservation easement

Access right of way

Two years ago, you bought a property for $264,500. Values increased in that area by 5% the first year and 7% the second year. How much is your property worth today?

``` 264,500 x .05 = 13,225 264,500 + 13,225 = 277,725 277,725 x .07 = 19,400 277,725 + 19,400 = 297,165.75 Answer: 297,166 ```

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

contribution

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

legally permissible

The four agents of production are land, ________, capital, and _____________. materials, buildings labor, entrepreneurial coordination buildings, labor materials, entrepreneurship

materials, entrepreneurship

The Uniform Commercial Code covers the sale of goods over $________. 500 100 50 250

500

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

directly, proportionately

"A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of limited partnership partnership general partnership trust

partnership

What is the purpose of a state's statute of frauds? gives the FBI jurisdiction over state authorities in certain cases prohibits fraud in real estate transactions establishes penalties for any criminal activities requires certain documents to be in writing

prohibits fraud in real estate transactions

The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT Fannie Mae FDIC OCC FRB

Fannie Mae