Deck! Flashcards
(177 cards)
1
Q
What should an appraiser do if they note defective paint surfaces on two exterior windowsills during an FHA appraisal?
A
Note the locations of the defective paint and make the appraisal subject to these areas being scraped and painted
This is necessary to ensure safety and compliance with regulations regarding lead-based paint.
2
Q
Most molds are toxic, true or false?
A
False
While some molds can be toxic, not all molds are considered toxic.
3
Q
Radon tests should be conducted for a minimum of _____ day(s).
A
2
4
Q
Radon in water can be removed by _______.
A
filtration or aeration
5
Q
Molds reproduce by _______.
A
producing spores
6
Q
All of these are places you are likely to find mold in a house, except for _______.
A
in your refrigerator
7
Q
The leading cause of lung cancer is _______.
A
smoking
8
Q
Which of these is NOT a known carcinogen that can cause cancer?
A
Carbon monoxide
9
Q
Who is most at risk from lead?
A
Children 6 and under
10
Q
In what currently manufactured product would you be MOST likely to find lead?
A
X-ray shield
11
Q
The most accurate and non-destructive way to test for lead-based paint is _______.
A
X-ray fluorescence
12
Q
The effects of radon exposure occur _______.
A
5-25 years later
13
Q
What is the preferred way to treat defective lead-based paint surfaces in residential dwellings?
A
Scraping and painting over the affected area
14
Q
Which of these is NOT on the EPA’s list of methods you should not use to remove lead-based paint?
A
a wet sander
15
Q
Tiles infected with common mold should be disposed of _______.
A
by taking it to a landfill
16
Q
Where does radon come from?
A
decay of uranium and radium in rocks and soil
17
Q
To survive, molds need all of the following EXCEPT _______.
A
relative humidity of at least 95%
18
Q
Asbestosis is best described as _______.
A
a chronic inflammatory condition of the lungs
19
Q
Nationwide Permits are now required for projects impacting as little as _______ of wetlands.
A
one-half of an acre
20
Q
The most wetlands have been drained for _______.
A
urban development
21
Q
The EPA thinks that what percent of underground storage tanks are leaking?
A
25%
22
Q
When appraising a property that is subject to environmental contamination, Fannie Mae requires an appraiser to note the hazardous condition in the appraisal report and _______.
A
Make appropriate adjustments in analyzing the property’s value
23
Q
The lead agencies for determining wetlands on non-agricultural property are the _______.
A
Army Corps of Engineers and the EPA
24
Q
All of the following are benefits of wetlands, EXCEPT _______.
A
increased agricultural production
25
If a property has been contaminated by methamphetamine (meth) manufacture, when is it eligible for an FHA-insured mortgage?
When it is certified safe for habitation
26
Why is it unlikely that an appraiser would be able to identify Chinese drywall in a dwelling?
Appraisers typically do not inspect for blackening of electrical wiring or air conditioner evaporator coils
27
_____________ has been called the silent killer.
Carbon monoxide
28
With regard to Chinese drywall, which course of action is most prudent and appropriate for an appraiser to take?
Put a disclaimer in reports stating that identifying Chinese drywall is outside the appraiser's scope of inspection
29
Which of these types of tanks would be excluded from federal UST regulations?
above ground tanks
30
Which of the following type of tank would NOT have to meet federal UST regulations?
all of these
31
Before any wetlands are filled or drained, a Nationwide Permit must be obtained from the _______.
Army Corps of Engineers
32
Fannie Mae requires an appraiser to analyze and report any hazardous condition that is _______.
On the subject property or in the vicinity of the property
33
One of the problematic aspects of locating environmental hazards located near the subject property is _______.
Such hazards are easy to accidentally overlook
34
Which statement is FALSE concerning wetlands?
A wetland must be wet year-round.
35
What type of tank is covered by federal UST regulations?
large industrial tanks
36
Asbestos can be found in all of the following products EXCEPT _______.
pressure treated wood
37
What does Fannie Mae expect from an appraiser regarding identification of environmental hazards?
Note any adverse conditions that were observed during the inspection or during research
38
Which of these actions can be done with asbestos, according to the EPA?
encapsulation
39
Asbestos can lead to _______.
lung cancer
40
FHA says if the property is within _________ feet of a stationary storage tank containing more than 1,000 gallons of flammable or explosive material, the site is ineligible.
300
41
Environmental Site Assessments are studies that are typically conducted by _______________.
trained engineers
42
The tool on the EPA website that details areas where there has been contamination is called _______.
Enviromapper
43
Fannie Mae expects that when an appraiser has knowledge of any hazardous condition, he or she must _____________ the hazardous condition in the appraisal report.
note
44
The market value of the property being appraised with full consideration of the effects of its environmental condition and the presence of environmental contamination on, adjacent to, or proximate to the property is the definition of _______.
impaired value
45
When appraising property with environmental contamination, which RULE in USPAP is particularly pertinent?
the COMPETENCY RULE
46
Fannie Mae says in its guidelines, 'The typical residential real estate appraiser is neither expected nor required to be an expert in this specialized field. However, the appraiser has a responsibility to _______.
note in the appraisal report any adverse conditions
47
Certification 2 in the URAR says, in part, 'I identified and reported the __________deficiencies that could affect the ________________ soundness, or ___________________ of the property.'
physical, livability, structural integrity
48
A site where contamination generated from a source has migrated to is known as which of the following?
non-source site
49
The market value of a known contaminated property, developed under the hypothetical condition that the property is not contaminated, is known as _______.
unimpaired value
50
Certification 11 in the URAR says, 'I have _______________ in appraising this ___________ of property in this ________________.'
knowledge and experience, type, market area
51
The URAR says 'The appraiser may expand the __________________ to include any additional research or analysis necessary based on the complexity of this appraisal assignment.'
scope of work
52
Appraisers can do which of the following if they lack competency on an environmental issue?
use data prepared by others who are experts
53
FHA guidelines require that a site be rejected if the property being appraised is subject to hazards, environmental contaminants, noxious odors, offensive sights, or excessive noises to the point of endangering the physical improvements or affecting the __________ of the property.
livability
54
___________________ is the additional or incremental risk of investing in, financing, buying and/or owning property attributable to its environmental condition.
Environmental risk
55
How many levels of Environmental Site Assessment are there before the remediation?
two
56
VA says, 'When there is an indication of a potential environment problem (e.g., abandoned underground fuel storage tank), the appraisal report must be conditioned for correction of the problem according to __________ requirements.
any local, state or federal
57
The Advisory Opinion that is titled 'The Appraisal of Real Property That May Be Impacted by Environmental Contamination' is _______.
AO-9
58
What is the generic term for homes that are pre-cut and assembled on site?
kit home
59
Which of the following is NOT an advantage of factory built homes?
larger basement size
60
Which type of factory built home is characterized by a HUD label affixed to the exterior of the home?
manufactured home
61
A marriage wall is a characteristic of a ____________ home.
modular
62
The HUD Code for manufactured home construction went into effect on _______.
June 15, 1976
63
Steeper roofs for modular homes are made possible by _______.
hinged rafters
64
_____ homes is a generic term for homes that are pre-cut and assembled on site.
Kit
65
When did the HUD Code for manufactured home construction go into effect?
June 15, 1976
66
What allows steeper roofs for modular homes?
hinged rafters
67
Why is the quality of a factory built home so high?
All of these
68
The HUD data plate is made of _____________.
Paper
69
Sears & Roebuck homes were _____.
pre-cut
70
Some manufactured home parks have been purchased collectively by the homeowners as _____.
cooperatives
71
FHA says a site for a manufactured home must be served by a(n) ________________ roadway.
all weather
72
Fannie Mae says that if a manufactured home is new, the lender must provide the appraiser with _____.
a copy of the executed sales contract and the dealer's invoice
73
VA requires which appraisal approach(es) to be used when appraising manufactured housing?
Both the sales comparison and cost approaches
74
Which of the following kinds of homes could be classified as personal property or real property?
manufactured
75
FHA says that no part of the finished grade level under a manufactured home may be below the ______ year flood level.
100
76
Fannie Mae says that manufactured homes must be attached to _____.
a permanent foundation
77
Owners of existing manufactured homes on ___________ land have limited alternatives for financing.
leased
78
Fannie Mae will purchase only loans secured by ____________ consisting of a manufactured home and _______________.
real property, owned land
79
For all appraisals of manufactured homes classified as personal property, FHA says lenders must engage independent fee appraisers who have _____.
successfully completed a specialized course in manufactured home valuation based on the N.A.D.A. appraisal system
80
Which of the following is NOT a difficulty of owners trying to sell a manufactured home they own in a manufactured home community?
Manufactured homes cannot legally be sold without land
81
Freddie Mac says the ___________ must provide the appraiser with a complete copy of the executed contract for sale of the manufactured home and land.
Lender
82
"The interests, benefits, and rights inherent in the ownership of real estate" is the definition of ____.
real property
83
If a certificate of title has been issued but state law doesn't provide for its surrender, the lender must:
indicate the real property lien on the certificate of title
84
Fannie Mae says that with a manufactured home, the roof pitch must be at least _____.
4/12
85
Fannie Mae will not accept appraisals that rely ______________________ approach(es) as an indicator of value.
solely on the cost
86
Fannie Mae says lenders need to use appraisers who have ___________________ appraising manufactured homes.
knowledge, experience, and data sources for
87
Fannie Mae requires that appraisers utilize the __________________ approach(es) when appraising manufactured homes.
sales comparison and cost
88
How are quality levels chosen when using the Marshall & Swift Residential Cost Handbook to develop the cost of a manufactured home?
by inputting the manufacturer's name and model name
89
From whom would you purchase the Residential Cost Handbook?
Marshall & Swift
90
An appraiser is using the N.A.D.A. Guide. This Guide will be useful in estimating the cost for:
manufactured housing only
91
Who produces average retail book values for manufactured homes?
N.A.D.A.
92
Fannie Mae and Freddie Mac say that the appraiser must rate the quality level of the manufactured home based on objective criteria of a published cost service; which of the following guides can they use?
Marshall & Swift and N.A.D.A.
93
N.A.D.A. produces ________________ for manufactured homes.
average retail book values
94
For Fannie Mae, appraisals of manufactured homes in a condominium project are to be reported on the ____________ form and modular homes are to be reported using the ________ form.
1004C, URAR
95
Which section in the 1004C form does not appear on the standard 1004 form?
HUD Data Plate section
96
Which of the following sections is completely identical in both form 1004C and the standard 1004 form?
Neighborhood section
97
N.A.D.A. primarily deals with:
site built and manufactured housing
98
How does the Residential Estimator 7 apply the current and local multiplier of the subject property?
the zip code of the property
99
Fannie Mae and Freddie Mac say that the appraiser must rate the quality level of the manufactured home based on objective criteria of a published cost service; they specifically mention ___________.
Marshall & Swift and the N.A.D.A. Guide
100
Fannie Mae says, "It is important to note that the N.A.D.A. chart values assume the home is in ________ condition."
average
101
When appraising a manufactured home situated in a condominium project for Fannie Mae, which appraisal form should be used?
The 1004C
102
Form 1004C is almost identical to which of the following?
URAR form
103
The Marshall and Swift Residential Cost Handbook provides ___________, while the N.A.D.A. Guide provides ________________.
Replacement cost, average retail book value
104
The N.A.D.A. guide produces a __________ cost specific to the subject's model, size, year built, and manufacturer.
depreciated replacement
105
The Residential Estimator 7 program is offered by:
Marshall & Swift
106
The 1004C form asks the appraiser to provide the location of the _____.
data plate
107
Form 1004C will be used to report appraisals of _____.
one-unit manufactured homes
108
Which of the following construction types does the Marshall & Swift Residential Cost Handbook cover?
site built, manufactured, and multi-family housing
109
N.A.D.A.'s estimated value includes an allowance for shipping up to _______ miles.
300
110
The HUD Certification label is made of ___________ and is located on the ___________ of a manufactured home.
Metal, Exterior
111
A duplex has 2,140 SF of GBA with two identical units each with 6 rooms, 3 bedrooms, 1 bathroom. It sold for $254,000. What is the indicated sale price per bedroom?
$42,333
112
The SRIPAR form uses _____.
both GLA and GBA
113
A duplex has 2,140 SF of GBA with two identical units each with 6 rooms, 3 bedrooms, 1 bathroom. It sold for $254,000. What is the indicated sale price per room?
$21,167
114
If you use a 1025 form when completing an appraisal for a Fannie Mae loan on a 4-unit property located in a cooperative project, you would also have to complete the __________ section of the Individual Cooperative Interest Appraisal Report form and attach it to your report.
project description
115
Which unit of measurement is primarily used in appraising single-unit properties?
gross living area
116
A property has four units. 2 are rented for $700, 1 for $725, and 1 for $775. The market rent for each unit is $750 per month. The indicated GRM is 118. What is the indicated value for the subject by the income approach?
$354,000
117
The N.A.D.A. system is different from any of the other cost services such as Marshall & Swift, Boeckh, Dodge, Means, etc. because their derived cost already includes _____.
Depreciation
118
In appraising two- to four-unit income producing property, there is more emphasis placed on all of these items, except for _____.
cost approach
119
A property has four units; the market rent for each unit is $750 per month. The indicated GRM is 135. What is the indicated value for the subject by the income approach?
$405,000
120
Which unit of measurement is primarily used in the appraisal of 2-4 unit residential properties?
gross building area
121
"Income derived from the operation of a business or real property; indicates a stage in the profit-and-loss account where all direct costs and income from the operation have been taken into account; as distinguished from net profit or cash flow" is also known as:
operating income
122
The standard income capitalization valuation formula is _____.
V = I ÷ R
123
"The sum of all fixed and variable operating expenses and the replacement allowance cited in the appraiser's operating expense estimate" is the definition of ______________ expenses.
total operating
124
An allowance that provides for the periodic replacement of building components that wear out more rapidly than the building itself and must be replaced during the building's economic life is known as:
replacement allowance
125
Which of the following are government sponsored enterprises?
Fannie Mae and Freddie Mac
126
What will generally be dictated by supply and demand characteristics of the local rental market?
vacancy allowance
127
When converting income into a value indication, with net income we _______________, and with gross income we ________________________.
divide by a rate, multiply by a multiplier
128
"The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted" is the definition of _________________ Income.
Potential Gross
129
"The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses" is the definition of ____.
Effective Gross Income
130
Which of the following are government agencies?
FHA and VA
131
When completing a Form 216 Operating Income Statement, how should we treat any income from owner-occupied units?
exclude it
132
"The periodic expenditures necessary to maintain the real estate and continue production of the Effective Gross Income, assuming prudent and competent management" is the definition of ______________.
operating expenses
133
How should we treat any income from owner-occupied units on a Form 216 Operating Income Statement?
include it
## Footnote
This reflects the treatment of income from owner-occupied units in real estate income statements.
134
What is the definition of 'the periodic expenditures necessary to maintain the real estate and continue production of the Effective Gross Income'?
operating expenses
## Footnote
This term refers to costs required for maintaining a property.
135
Which building component does NOT need to be replaced at least once in a building's lifetime?
foundation
## Footnote
Foundations are typically designed to last the lifetime of the building.
136
Which report form must appraisers use when appraising a 2-4 unit property according to FHA?
1025
## Footnote
This form is specifically designated for multi-unit property appraisals.
137
What is the definition of 'total income from a property before deducting any expenses'?
Gross
## Footnote
This term is commonly used in real estate to represent total income.
138
'Who', 'which', and 'what' are examples of:
interrogative pronouns
## Footnote
These pronouns are used to ask questions.
139
What percentage of information do we retain when we read?
10
## Footnote
This statistic highlights the limitations of retention from reading.
140
Adverbs usually modify:
verbs
## Footnote
Adverbs provide more detail about how actions are performed.
141
Which of these words is NOT a proper singular form?
data
## Footnote
'Data' is typically treated as a plural noun in formal contexts.
142
According to USPAP, an appraisal report can be delivered:
either orally or written
## Footnote
This flexibility in delivery helps accommodate different client needs.
143
Which sentence uses an incorrect word?
The foundation crack has an affect on value.
## Footnote
'Affect' should be replaced with 'effect' in this context.
144
After the salutation of a business letter, you should put a:
colon
## Footnote
A colon is the correct punctuation following the salutation.
145
Which of these words is misspelled?
unecessary
## Footnote
The correct spelling is 'unnecessary'.
146
Which of these words is NOT a proper singular form?
criteria
## Footnote
'Criteria' is the plural form of 'criterion'.
147
An appraiser would be MOST likely to use a narrative report format on what type of appraisal assignment?
a commercial building
## Footnote
Narrative reports are often used for complex assignments.
148
The Summary of Important Conclusions would appear in the ______________ of a narrative appraisal report.
Introduction
## Footnote
This section provides an overview of the appraisal findings.
149
USPAP states that an appraisal report must contain _________ to enable the intended users to understand the report properly.
sufficient information
## Footnote
This requirement ensures clarity and comprehensiveness.
150
What is the primary difference between 'misleading' and 'fraudulent'?
fraudulent requires intent; misleading can happen by accident
## Footnote
Understanding this distinction is crucial in appraisal ethics.
151
_______ means intentionally doing something that you know is misleading.
Fraudulent
## Footnote
This term indicates intentional deception.
152
Each written or oral property appraisal report must have which of the following?
all of the above
## Footnote
This includes clarity, sufficient information, and accurate disclosures.
153
Which of these would not be one of the five major elements of a narrative appraisal report?
The three approaches to value
## Footnote
This is a method rather than a report element.
154
In the certification required under SR 2-3, an appraiser must certify that 'the statements of fact contained in this report are ___________________.'
true and correct
## Footnote
This certification is vital for report integrity.
155
The type of appraisal report utilized in an assignment is determined by all of these factors, except for:
The client's wishes
## Footnote
While client preferences matter, other factors take precedence.
156
SR 2-1b says your real property appraisal must 'contain sufficient information to enable ______________ the appraisal to understand the report properly.'
the intended users of
## Footnote
This emphasizes the report's accessibility to its audience.
157
STANDARD 2 says 'Each written or oral real property appraisal report must clearly and accurately set forth the appraisal in a manner that will _______________.
Not be misleading
## Footnote
This standard is crucial for ethical appraisal practice.
158
The URAR form is best used for an appraisal assignment that involves ____________ inspection of the subject property.
an interior and exterior
## Footnote
This form is designed for comprehensive property evaluations.
159
The type and extent of research and analyses in an appraisal or appraisal review assignment is called the ______________.
scope of work
## Footnote
This term defines the boundaries of the appraisal process.
160
Narrative type appraisal reports can be produced on ___________.
any type of property
## Footnote
This versatility allows for detailed reporting across various property types.
161
______________ means intentionally doing something that you know is wrong.
Fraudulent
## Footnote
This term indicates a clear intent to deceive.
162
In a properly-developed market value appraisal on a green property:
the prospect of future energy savings is built into the process
## Footnote
This reflects the integration of sustainability in valuations.
163
The Certified Green Professional designation is offered through the:
NAHB
## Footnote
This organization focuses on sustainable building practices.
164
'sustainable' can be used to refer to the _________ in construction.
all of the above
## Footnote
This includes methods, materials, and operating costs.
165
With respect to location, one of the most significant trends in commercial green building is:
Re-use of existing building sites
## Footnote
This trend promotes sustainability through efficient land use.
166
Sustainable design considers the:
entire life cycle of the building
## Footnote
This approach ensures long-term sustainability.
167
What is the Green Building Finance Consortium?
a group of corporations and trade groups that are addressing the need for independent research and analysis in investment in green buildings
## Footnote
This consortium focuses on financial aspects of green building initiatives.
168
A ________ value can be extracted from another market, another price range (expressed as a percentage), or from old sales.
Bonus
## Footnote
This term refers to additional value considerations in appraisals.
169
Under USPAP, an appraiser is not permitted to be a/an _____________ or to perform assignments with _______________.
advocate, bias
## Footnote
This ensures objectivity in the appraisal process.
170
According to ENERGY PULSE, 86% of Americans:
would choose one home over another based on energy efficiency
## Footnote
This reflects the growing importance of energy efficiency in home buying decisions.
171
If an on-site sewage system is used, the system should be situated:
Below the house to eliminate the need for pumps
## Footnote
This placement optimizes the function of the sewage system.
172
In the Cost Approach, the 'bonus value' also can be used to estimate:
functional obsolescence
## Footnote
This relates to the impact of outdated features on property value.
173
What is 'green washing'?
when a person falsely claims a structure is green without a third-party certification
## Footnote
This term highlights deceptive practices in marketing green properties.
174
It is not recommended you use the words 'certified' or 'green' in any appraisal report without ______________.
Having a certification concerning the property
## Footnote
This ensures accuracy in claims about the property's green status.
175
The practice of creating structures and using processes that are environmentally responsible and resource-efficient is the definition of:
green building
## Footnote
This concept encompasses sustainable construction practices.
176
In the Income Approach, all of these factors increase value, EXCEPT:
higher capitalization rate
## Footnote
A higher capitalization rate typically indicates lower property value.
177
Green building is often called:
sustainable building
## Footnote
This term emphasizes the long-term viability of green construction practices.
