Basic Appraisal Principles Final Exam
and Already Passed Answers 2026
Updated.
Appraisers must develop and communicate their work in a manner that is _________ and that
does not __________their services to intended user. - Answer meaningful, misrepresent
An appraiser who favors the cause of the client shows - Answer bias.
A property owner has asked an appraiser to work on a tax appeal assignment, but only if the tax
value can be lowered. What must the appraiser consider in this situation? - Answer The
appraiser may be able to perform the service as a consultant, but not in the role of an appraiser.
An appraiser must be competent in _________ to produce a credible appraisal. - Answer all
the competencies that are necessary
An appraiser has accepted an appraisal assignment and begins working on it. During the course
of the assignment, the appraiser discovers that he doesn't have the competency required to
complete the assignment, but feels he can acquire the necessary competency. What is the best
course of action the appraiser should take in this situation? - Answer He must notify the
client of the competency issue and take the necessary steps to gain competency in order to
complete the assignment.
Being competent pertains to - Answer all of these answers.
What is the likely result of an appraiser sufficiently diligent in their appraisal practice? - Answer
assignment results that are credible
When developing a real property appraisal, an appraiser - Answer must be aware of,
understand, and correctly employ those recognized methods and techniques that are necessary
to produce a credible appraisal.
Your client, the bank, discovers an error in your report. The error could result in a change in
your conclusion. Are you allowed to change the report? - Answer Yes, if the error is verified
and a change is logical.
The intended use of the appraisal is the appraiser's understanding of - Answer how the client
will use the appraisal.
,Which of the following is one of the assignment elements that an appraiser must identify prior
to acceptance? - Answer assignment conditions
The purpose of the assignment is also referred to as - Answer type and definition of value.
You are an appraiser who also performs brokerage services. You have been asked to help sell a
small family farm. The client specifically needs assistance with a marketing plan, deciding what
improvements should be made to the property and how to handle an offer. If you accept this
assignment, you are - Answer acting in the role of the broker, rather than an appraiser.
Before an appraiser begins an assignment, what should the appraiser develop to ensure
credible results? - Answer the scope of work
What is the strategy for solving a client's valuation problem in which the appraiser determines
the type and extent of research and analyses the assignment requires? - Answer scope of
work
The tenant of a retail building operates a baking facility and has installed commercial ovens for
baking bread. The ovens are large and heavy and a portion of the back wall of the building had
to be removed for the ovens to be installed. The appraiser is performing an appraisal of the real
estate interest only. Should the ovens be included in the appraiser's valuation? - Answer The
appraiser should not include the ovens because they are trade fixtures.
Air rights are an example of ________ rights. - Answer suprasurface
If the FAA were to decline a permit for a windmill 1/4 mile past the end of the runway of a
small, county airport they would be invoking their - Answer air rights.
What characteristic makes land unique? - Answer no two parcels can occupy the same space
on the face of the earth
Appurtenant means - Answer An appurtenance is something subordinate to or belonging to
another larger, principal entity, that is, an adjunct, satellite or accessory that generally
accompanies something else. The word derives from Latin appertinere, "to appertain".
In theory, the supply of land is considered to be - Answer finite
Corn in a cornfield is an example of a(n) - Answer emblement.
, When an appraiser values real property, what is actually being valued? - Answer all interests,
benefits, and rights inherent in the ownership of real estate
A property owner discovered during a loan refinance that a previously unknown public
easement may prevent the owner from building an addition to the residence. The owner
believes this will have an impact on any future sale of the property. What real right property is
affected in this situation? - Answer right to improve
Retrieving minerals located in the ground are connected to what type of land rights? - Answer
subsurface rights
What is the concept within land theory that suggests that ownership in land includes complete
possession from the center of the earth to the ends of the universe? - Answer the inverted
pyramid
The right to occupy your home is an example of _______, which is a right in the bundle of rights.
- Answer possession
Rick and Candace purchased the small ranch just east of their home for his elderly parents and
would like to establish them as the official owners. Which estate would best allow this
situation? - Answer A life estate will allow Ricks parents to retain all the rights and benefits of
owning the land until the time of their death. The property is still considered a freehold estate
because it will last for an indeterminate duration. After which, the property will revert back to
Rick and Candace who have retained a future interest in the land. Even if his parents sold the
land, it will revert back to Rick and Candace after his parent's death. See Module 3 topic Estates
in Land and cited Course Handbook pages for more information.
After purchasing a wooded fifty acres on a scenic riverfront, Jack was transferred out of state for
his job. In the interest of having some money to curb the cost of his move, Jack sold the land to
Mike on the condition that no permanent dwellings would be erected to disturb the landscape.
Mike has used the land as a youth campground for seven years now. The camp is doing so well
that Mike would like to build a small office with a sleeping area that he could occupy while
running the grounds. Does Mike have the right to build on the land? - Answer No. Jack
granted a fee simple defeasible estate to Mike. If Mike disturbs the landscape, Jack may become
the owner again because he retained a future interest in the land.
Matt recently gained title to his late grandfather's 3-unit commercial building in the downtown
area. All three units are leased to Landmark Enterprises for the next seven years. One of the
units is currently subleased to a pizza chain while the other two are subleased as a combined
resale clothing store. In light of the leases, who is considered to be the owner of the property? -
Answer Matt, who is the landlord and has a leased fee interest in the property
and Already Passed Answers 2026
Updated.
Appraisers must develop and communicate their work in a manner that is _________ and that
does not __________their services to intended user. - Answer meaningful, misrepresent
An appraiser who favors the cause of the client shows - Answer bias.
A property owner has asked an appraiser to work on a tax appeal assignment, but only if the tax
value can be lowered. What must the appraiser consider in this situation? - Answer The
appraiser may be able to perform the service as a consultant, but not in the role of an appraiser.
An appraiser must be competent in _________ to produce a credible appraisal. - Answer all
the competencies that are necessary
An appraiser has accepted an appraisal assignment and begins working on it. During the course
of the assignment, the appraiser discovers that he doesn't have the competency required to
complete the assignment, but feels he can acquire the necessary competency. What is the best
course of action the appraiser should take in this situation? - Answer He must notify the
client of the competency issue and take the necessary steps to gain competency in order to
complete the assignment.
Being competent pertains to - Answer all of these answers.
What is the likely result of an appraiser sufficiently diligent in their appraisal practice? - Answer
assignment results that are credible
When developing a real property appraisal, an appraiser - Answer must be aware of,
understand, and correctly employ those recognized methods and techniques that are necessary
to produce a credible appraisal.
Your client, the bank, discovers an error in your report. The error could result in a change in
your conclusion. Are you allowed to change the report? - Answer Yes, if the error is verified
and a change is logical.
The intended use of the appraisal is the appraiser's understanding of - Answer how the client
will use the appraisal.
,Which of the following is one of the assignment elements that an appraiser must identify prior
to acceptance? - Answer assignment conditions
The purpose of the assignment is also referred to as - Answer type and definition of value.
You are an appraiser who also performs brokerage services. You have been asked to help sell a
small family farm. The client specifically needs assistance with a marketing plan, deciding what
improvements should be made to the property and how to handle an offer. If you accept this
assignment, you are - Answer acting in the role of the broker, rather than an appraiser.
Before an appraiser begins an assignment, what should the appraiser develop to ensure
credible results? - Answer the scope of work
What is the strategy for solving a client's valuation problem in which the appraiser determines
the type and extent of research and analyses the assignment requires? - Answer scope of
work
The tenant of a retail building operates a baking facility and has installed commercial ovens for
baking bread. The ovens are large and heavy and a portion of the back wall of the building had
to be removed for the ovens to be installed. The appraiser is performing an appraisal of the real
estate interest only. Should the ovens be included in the appraiser's valuation? - Answer The
appraiser should not include the ovens because they are trade fixtures.
Air rights are an example of ________ rights. - Answer suprasurface
If the FAA were to decline a permit for a windmill 1/4 mile past the end of the runway of a
small, county airport they would be invoking their - Answer air rights.
What characteristic makes land unique? - Answer no two parcels can occupy the same space
on the face of the earth
Appurtenant means - Answer An appurtenance is something subordinate to or belonging to
another larger, principal entity, that is, an adjunct, satellite or accessory that generally
accompanies something else. The word derives from Latin appertinere, "to appertain".
In theory, the supply of land is considered to be - Answer finite
Corn in a cornfield is an example of a(n) - Answer emblement.
, When an appraiser values real property, what is actually being valued? - Answer all interests,
benefits, and rights inherent in the ownership of real estate
A property owner discovered during a loan refinance that a previously unknown public
easement may prevent the owner from building an addition to the residence. The owner
believes this will have an impact on any future sale of the property. What real right property is
affected in this situation? - Answer right to improve
Retrieving minerals located in the ground are connected to what type of land rights? - Answer
subsurface rights
What is the concept within land theory that suggests that ownership in land includes complete
possession from the center of the earth to the ends of the universe? - Answer the inverted
pyramid
The right to occupy your home is an example of _______, which is a right in the bundle of rights.
- Answer possession
Rick and Candace purchased the small ranch just east of their home for his elderly parents and
would like to establish them as the official owners. Which estate would best allow this
situation? - Answer A life estate will allow Ricks parents to retain all the rights and benefits of
owning the land until the time of their death. The property is still considered a freehold estate
because it will last for an indeterminate duration. After which, the property will revert back to
Rick and Candace who have retained a future interest in the land. Even if his parents sold the
land, it will revert back to Rick and Candace after his parent's death. See Module 3 topic Estates
in Land and cited Course Handbook pages for more information.
After purchasing a wooded fifty acres on a scenic riverfront, Jack was transferred out of state for
his job. In the interest of having some money to curb the cost of his move, Jack sold the land to
Mike on the condition that no permanent dwellings would be erected to disturb the landscape.
Mike has used the land as a youth campground for seven years now. The camp is doing so well
that Mike would like to build a small office with a sleeping area that he could occupy while
running the grounds. Does Mike have the right to build on the land? - Answer No. Jack
granted a fee simple defeasible estate to Mike. If Mike disturbs the landscape, Jack may become
the owner again because he retained a future interest in the land.
Matt recently gained title to his late grandfather's 3-unit commercial building in the downtown
area. All three units are leased to Landmark Enterprises for the next seven years. One of the
units is currently subleased to a pizza chain while the other two are subleased as a combined
resale clothing store. In light of the leases, who is considered to be the owner of the property? -
Answer Matt, who is the landlord and has a leased fee interest in the property
