Final Certified General Appraiser
Exam - Definitions & Formulas Study
Guide Exam and Answers.
38) The subject property is a mobile home park located on a site which is zoned "commercial".
Other uses in the immediate area include a shopping center, apartment complex, and a grocery
store. The property generates a net operating income of $30,000 per year. The site contains 10
acres. Land values are at $0.50 per sf and have been increasing at a modest 2% per year.
Assuming an overall rate of
13.5%, is the continued use as mobile home park a financially feasible use, and why? - Answer
B) Yes; because it produces a positive return on the investment
What is the Cap Rate formula using LTV? - Answer Cap Rate = (Loan-to-Value x Mortgage
Constant) + (Equity % x Equity Divide Ratio)
Who determines USPAP violations? - Answer The State appraiser regulatory agency
How many square feet in one square yard? - Answer 9
When is the leasehold positive? - Answer When market rent is greater than the contract rent
What is the extraction appraisal definition - Answer Extraction appraisal is a method used to
determine the value of land or a site without improvements. It's a common method when the
land value is the main amount that needs to be appraised, or when there aren't enough
comparable vacant land sales.
What is the allocation appraisal definition - Answer Allocation appraisal is a technique used
by appraisers to determine the value of land or property by comparing it to similar properties in
the area.
What is the residual appraisal definition - Answer A residual appraisal is a valuation method
that estimates the value of a development property by subtracting the costs of development
from the anticipated proceeds. The residual is usually the land value or development profit.
What is the most important criteria for comparable selection? - Answer Open market
transaction
What is an easement appurtenant - Answer An easement that gives a property owner a right
of usage to portions of an adjoining property owned by another party
, What is an easement by prescription? - Answer This type of easement comes into effect
when one party has used the other's property for a particular purpose over an extended period
of time — with or without permission.
What is an easement in gross? - Answer The biggest difference with an easement in gross
compared with other types of easements is that there is no dominant estate involved. Whereas
some of the easements discussed offer clear benefits to another property owner — such as
giving your neighbors access to private roads — that's not the case here. Typically, an easement
in gross will come into play when a utility company wants to run power lines through private
property or, less commonly, when a business wants to put up a billboard on your land.
What is joint tenancy? - Answer A type of co-ownership where two or more people own a
property or asset in equal shares.
How does joint tenancy work in terms of ownership? - Answer For example, a couple who
buy a house together as joint tenants each own 100% of the property.
What happens in joint tenancy when one co-owner dies? - Answer The other co-owners
usually gain immediate access to the property.
Who often uses joint tenancies? - Answer Couples in long-term relationships.
What is tenancy in common? - Answer A type of joint ownership where multiple people own
a property or asset in shares.
Who often uses tenancies in common? - Answer Friends
What is a leasehold estate? - Answer A type of tenancy derived from contract law and
considered personal property.
What are the types of leasehold estates? - Answer Estate for years, periodic tenancy, tenancy
at will, and tenancy at sufferance.
Which type of leasehold interest is the most common in real property? - Answer Estate for
years, which can be created for any fixed period of time.
What is the equity dividend ratio? - Answer RE = (Net operating income - annual debt
service) / Down payment
Exam - Definitions & Formulas Study
Guide Exam and Answers.
38) The subject property is a mobile home park located on a site which is zoned "commercial".
Other uses in the immediate area include a shopping center, apartment complex, and a grocery
store. The property generates a net operating income of $30,000 per year. The site contains 10
acres. Land values are at $0.50 per sf and have been increasing at a modest 2% per year.
Assuming an overall rate of
13.5%, is the continued use as mobile home park a financially feasible use, and why? - Answer
B) Yes; because it produces a positive return on the investment
What is the Cap Rate formula using LTV? - Answer Cap Rate = (Loan-to-Value x Mortgage
Constant) + (Equity % x Equity Divide Ratio)
Who determines USPAP violations? - Answer The State appraiser regulatory agency
How many square feet in one square yard? - Answer 9
When is the leasehold positive? - Answer When market rent is greater than the contract rent
What is the extraction appraisal definition - Answer Extraction appraisal is a method used to
determine the value of land or a site without improvements. It's a common method when the
land value is the main amount that needs to be appraised, or when there aren't enough
comparable vacant land sales.
What is the allocation appraisal definition - Answer Allocation appraisal is a technique used
by appraisers to determine the value of land or property by comparing it to similar properties in
the area.
What is the residual appraisal definition - Answer A residual appraisal is a valuation method
that estimates the value of a development property by subtracting the costs of development
from the anticipated proceeds. The residual is usually the land value or development profit.
What is the most important criteria for comparable selection? - Answer Open market
transaction
What is an easement appurtenant - Answer An easement that gives a property owner a right
of usage to portions of an adjoining property owned by another party
, What is an easement by prescription? - Answer This type of easement comes into effect
when one party has used the other's property for a particular purpose over an extended period
of time — with or without permission.
What is an easement in gross? - Answer The biggest difference with an easement in gross
compared with other types of easements is that there is no dominant estate involved. Whereas
some of the easements discussed offer clear benefits to another property owner — such as
giving your neighbors access to private roads — that's not the case here. Typically, an easement
in gross will come into play when a utility company wants to run power lines through private
property or, less commonly, when a business wants to put up a billboard on your land.
What is joint tenancy? - Answer A type of co-ownership where two or more people own a
property or asset in equal shares.
How does joint tenancy work in terms of ownership? - Answer For example, a couple who
buy a house together as joint tenants each own 100% of the property.
What happens in joint tenancy when one co-owner dies? - Answer The other co-owners
usually gain immediate access to the property.
Who often uses joint tenancies? - Answer Couples in long-term relationships.
What is tenancy in common? - Answer A type of joint ownership where multiple people own
a property or asset in shares.
Who often uses tenancies in common? - Answer Friends
What is a leasehold estate? - Answer A type of tenancy derived from contract law and
considered personal property.
What are the types of leasehold estates? - Answer Estate for years, periodic tenancy, tenancy
at will, and tenancy at sufferance.
Which type of leasehold interest is the most common in real property? - Answer Estate for
years, which can be created for any fixed period of time.
What is the equity dividend ratio? - Answer RE = (Net operating income - annual debt
service) / Down payment
