ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
Which two terms are synonymous and are defined as the amount of rent typical for
properties that are comparable to the subject property? - ANSWER Economic rent,
market rent
Which of the following properties would you expect to appraise highest? -
ANSWER Q1, C1
There are many advantages to holding property within a trust. One of the most important
advantages is that some trusts ______. - ANSWER Avoid probate
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of
state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the
property divided? - ANSWER Barbie owns two-thirds, and Midge owns one-third.
Why would an appraiser use gross income multiplier, direct capitalization, or yield
capitalization—rather than gross rent multiplier—to determine the value of an income
property? - ANSWER The property has income from other sources in addition to
rent.
A young professional couple from out of state have been referred to you. The couple knows
nothing about the area and would like some demographic information before they buy a
home in the area. Basically, they'd like a breakdown by age of the population. Which of the
following would be the best tool to present this information? - ANSWER Pie chart
1
,Which of the following statements about a property owner placing a restriction on a deed is
true? - ANSWER The owner may place a time limit on the restriction.
A restriction may run with the land forever (appearing on all future deeds), or it may have a
time limit.
What's another name for the building plan? - ANSWER Blueprint
When a large tract of land is purchased and prepared for development, and then split into
parcels, the value of each lot as a residential building site must be determined. The method
used to value each individual parcel is known as the ______ method. -
ANSWER Subdivision development
What are improvements with regard to property? - ANSWER Artificial attachments
to land that include items such as fencing, buildings, and walkways
You are viewing a home with a buyer client. When you open one of the bedroom closets,
you find a piece of paper with some information stuck to the inside of the door. What have
you most likely discovered? - ANSWER The home is a manufactured home and this is
the data plate.
What type of window design is similar to window blinds? - ANSWER Jalousie
Sally is looking at average home prices in her area over the last 10 years. The graph of the
data makes it especially easy to see the changes over time. What type of graph is most likely
being used to present this data - ANSWER Line graph
When following the Uniform Standards of Professional Appraisal Practice process for real
estate appraisal, an appraiser will _________ after determining the subject property's
highest and best use. - ANSWER Estimate value of the land
2
,Which of these situations requires the services of a state-licensed or state-certified
appraiser? - ANSWER A lender needs an appraisal for a federally related transaction.
How is the adjusted sales price calculated for a comparable property using the sales
comparison approach? - ANSWER By adding or subtracting the sum of the
adjustments made on a comparable property
When using the sales comparison approach, appraisers add or subtract the net adjustment
(the sum of adjustments for a property) from the sale price of a comparable to get an
adjusted sale price.
The fewer properties on the market, the greater the scarcity. What's the effect on prices? -
ANSWER Prices are pushed upward.
Maxwell is a tenant. His lease has a fixed rent in which the landlord pays all taxes, insurance,
and maintenance expenses. What type of lease does he have? - ANSWER Gross
In a gross lease, the tenant pays a fixed rent, and the landowner pays taxes, insurance, and
maintenance expenses for the property.
Which types of REITs don't buy properties but instead invest in real estate debt? -
ANSWER Mortgage REITs
Which land valuation method uses the amount of ground rent the land will generate, and
then capitalizes that income into a value for the land using a capitalization rate? -
ANSWER Ground rent capitalization method
The ground rent capitalization method can be used to estimate land value when a ground
lease exists or when the land is vacant.
3
, When do clients typically opt for the Exterior-Only Inspection Residential Appraisal Report
(Form 2055)? - ANSWER When there's a very low loan-to-value ratio
This report is often called a "drive by," because the scope of work the client requires
includes fewer steps than other types of reports.
Which of these should tenants keep in mind regarding trade fixtures? -
ANSWER Installation and removal should not cause damage to the property.
Philip owns land in a state where growing marijuana is illegal. He wants to set up a small
marijuana growing operation and export to states where marijuana has been legalized. He
asks his attorney about the possibility. "No," his attorney explains. "It's not possible.
Although you own the property outright, the right of ______ only allows you to manage the
property in ways that are legal in this jurisdiction - ANSWER Control
Lenders can submit electronic appraisal reports, such as the Uniform Residential Appraisal
Report through what tool on the Fannie Mae website? - ANSWER Uniform Collateral
Data Portal
Which type of roof features a ridge beam or girder that forms the top line of the roof? -
ANSWER Rafter roof
Martin placed all of his real estate investments in a trust, and the proceeds are distributed
through the trust to his son Nathan. Martin still manages the properties indirectly, and
Nathan currently benefits, as he's past the required beneficiary age of 18. What type of trust
is this? - ANSWER Living trust
With a cooperative, the transfer of ownership ______. - ANSWER Requires board
approval
The transfer of cooperative ownership requires approval of the cooperative board.
4
Which two terms are synonymous and are defined as the amount of rent typical for
properties that are comparable to the subject property? - ANSWER Economic rent,
market rent
Which of the following properties would you expect to appraise highest? -
ANSWER Q1, C1
There are many advantages to holding property within a trust. One of the most important
advantages is that some trusts ______. - ANSWER Avoid probate
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of
state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the
property divided? - ANSWER Barbie owns two-thirds, and Midge owns one-third.
Why would an appraiser use gross income multiplier, direct capitalization, or yield
capitalization—rather than gross rent multiplier—to determine the value of an income
property? - ANSWER The property has income from other sources in addition to
rent.
A young professional couple from out of state have been referred to you. The couple knows
nothing about the area and would like some demographic information before they buy a
home in the area. Basically, they'd like a breakdown by age of the population. Which of the
following would be the best tool to present this information? - ANSWER Pie chart
1
,Which of the following statements about a property owner placing a restriction on a deed is
true? - ANSWER The owner may place a time limit on the restriction.
A restriction may run with the land forever (appearing on all future deeds), or it may have a
time limit.
What's another name for the building plan? - ANSWER Blueprint
When a large tract of land is purchased and prepared for development, and then split into
parcels, the value of each lot as a residential building site must be determined. The method
used to value each individual parcel is known as the ______ method. -
ANSWER Subdivision development
What are improvements with regard to property? - ANSWER Artificial attachments
to land that include items such as fencing, buildings, and walkways
You are viewing a home with a buyer client. When you open one of the bedroom closets,
you find a piece of paper with some information stuck to the inside of the door. What have
you most likely discovered? - ANSWER The home is a manufactured home and this is
the data plate.
What type of window design is similar to window blinds? - ANSWER Jalousie
Sally is looking at average home prices in her area over the last 10 years. The graph of the
data makes it especially easy to see the changes over time. What type of graph is most likely
being used to present this data - ANSWER Line graph
When following the Uniform Standards of Professional Appraisal Practice process for real
estate appraisal, an appraiser will _________ after determining the subject property's
highest and best use. - ANSWER Estimate value of the land
2
,Which of these situations requires the services of a state-licensed or state-certified
appraiser? - ANSWER A lender needs an appraisal for a federally related transaction.
How is the adjusted sales price calculated for a comparable property using the sales
comparison approach? - ANSWER By adding or subtracting the sum of the
adjustments made on a comparable property
When using the sales comparison approach, appraisers add or subtract the net adjustment
(the sum of adjustments for a property) from the sale price of a comparable to get an
adjusted sale price.
The fewer properties on the market, the greater the scarcity. What's the effect on prices? -
ANSWER Prices are pushed upward.
Maxwell is a tenant. His lease has a fixed rent in which the landlord pays all taxes, insurance,
and maintenance expenses. What type of lease does he have? - ANSWER Gross
In a gross lease, the tenant pays a fixed rent, and the landowner pays taxes, insurance, and
maintenance expenses for the property.
Which types of REITs don't buy properties but instead invest in real estate debt? -
ANSWER Mortgage REITs
Which land valuation method uses the amount of ground rent the land will generate, and
then capitalizes that income into a value for the land using a capitalization rate? -
ANSWER Ground rent capitalization method
The ground rent capitalization method can be used to estimate land value when a ground
lease exists or when the land is vacant.
3
, When do clients typically opt for the Exterior-Only Inspection Residential Appraisal Report
(Form 2055)? - ANSWER When there's a very low loan-to-value ratio
This report is often called a "drive by," because the scope of work the client requires
includes fewer steps than other types of reports.
Which of these should tenants keep in mind regarding trade fixtures? -
ANSWER Installation and removal should not cause damage to the property.
Philip owns land in a state where growing marijuana is illegal. He wants to set up a small
marijuana growing operation and export to states where marijuana has been legalized. He
asks his attorney about the possibility. "No," his attorney explains. "It's not possible.
Although you own the property outright, the right of ______ only allows you to manage the
property in ways that are legal in this jurisdiction - ANSWER Control
Lenders can submit electronic appraisal reports, such as the Uniform Residential Appraisal
Report through what tool on the Fannie Mae website? - ANSWER Uniform Collateral
Data Portal
Which type of roof features a ridge beam or girder that forms the top line of the roof? -
ANSWER Rafter roof
Martin placed all of his real estate investments in a trust, and the proceeds are distributed
through the trust to his son Nathan. Martin still manages the properties indirectly, and
Nathan currently benefits, as he's past the required beneficiary age of 18. What type of trust
is this? - ANSWER Living trust
With a cooperative, the transfer of ownership ______. - ANSWER Requires board
approval
The transfer of cooperative ownership requires approval of the cooperative board.
4
