AGB 212 EXAMINERS ANSWERS AND QUESTIONS
SET A+
✔✔supply and demand factors - ✔✔market price varies with supply and demand
✔✔supply of real estate - ✔✔-land resources are generally finite
-developed real estate
-total supply= existing inventory + new development - demolitions
-effective supply: properties on the market at any given time
-development: intensity can influence supply
-real estate development is typically a slow, complex, costly and risky enterprise
✔✔demand for real estate - ✔✔-desire and ability to purchase or lease property
rate of household creation
-job growth/ employment
-household income levels
-mortgage rates and terms
-alternative investments
-profitability for business enterprise for expansion and/or capital investments
-lessee (tenant) demand for housing, commercial, industrial or farmland
✔✔basic industry - ✔✔produces more than consumed in local economy
ex: silicon valley with computer products
✔✔non-basic or support industry - ✔✔opposite of basic industry, supports local people
✔✔improvements - ✔✔structures (buildings, fences, etc)
✔✔site improvements - ✔✔roads, wells, septic, utilities
✔✔externalities (4 examples) - ✔✔forces that influence property value
social
economic
, governmental
physical/environmental
✔✔highest and best use - ✔✔use that generates the highest value of the property
✔✔appraisal = - ✔✔valuation
✔✔UASFLA - ✔✔uniform standards for federal land acquisition
✔✔CCP - ✔✔code of civil procedures
✔✔ Legal tests of a fixture - ✔✔MARIA- (M) method of attachment/annexation, (A)
adaptability and character of item to the real property, (R) relationship of parties, (I)
intention of parties, (A) agreement of parties
✔✔4 Gov't limits to property ownership - ✔✔1. Property Taxes 2. Eminent domain 3.
police power 4. Escheat
✔✔Private limits to ownerhip - ✔✔1. Easements 2. Covenants, conditions, and
restrictions (CC&R) 3. Conservation
✔✔5 factors of value - ✔✔(DUST D) 1. Desirability 2. Use 3. Scarcity
4. Transferability 5. Demand/ effective purchasing power
✔✔liquidation value - ✔✔"fire sale" seller at a disadvantage-limited market period
✔✔value - ✔✔monetary worth of something
✔✔financing affect on price - ✔✔"terms of sale", always relate to a "cash equivalent"
sale price
✔✔easement - ✔✔right that someone has in somebody else's property; ex. roadway,
public utility, avigation, flowage, and conservation
✔✔reversion - ✔✔after lease
✔✔Transferable Development Rights - ✔✔TDR, development value transferred to other
property
✔✔4 Attitudes and policy toward land evolved - ✔✔1. Aggregation- assembled the
nation 2. Distribution- private use and development of land 3. Preservation- National
parks, USFS 4. Regulation- private land use (police power)
SET A+
✔✔supply and demand factors - ✔✔market price varies with supply and demand
✔✔supply of real estate - ✔✔-land resources are generally finite
-developed real estate
-total supply= existing inventory + new development - demolitions
-effective supply: properties on the market at any given time
-development: intensity can influence supply
-real estate development is typically a slow, complex, costly and risky enterprise
✔✔demand for real estate - ✔✔-desire and ability to purchase or lease property
rate of household creation
-job growth/ employment
-household income levels
-mortgage rates and terms
-alternative investments
-profitability for business enterprise for expansion and/or capital investments
-lessee (tenant) demand for housing, commercial, industrial or farmland
✔✔basic industry - ✔✔produces more than consumed in local economy
ex: silicon valley with computer products
✔✔non-basic or support industry - ✔✔opposite of basic industry, supports local people
✔✔improvements - ✔✔structures (buildings, fences, etc)
✔✔site improvements - ✔✔roads, wells, septic, utilities
✔✔externalities (4 examples) - ✔✔forces that influence property value
social
economic
, governmental
physical/environmental
✔✔highest and best use - ✔✔use that generates the highest value of the property
✔✔appraisal = - ✔✔valuation
✔✔UASFLA - ✔✔uniform standards for federal land acquisition
✔✔CCP - ✔✔code of civil procedures
✔✔ Legal tests of a fixture - ✔✔MARIA- (M) method of attachment/annexation, (A)
adaptability and character of item to the real property, (R) relationship of parties, (I)
intention of parties, (A) agreement of parties
✔✔4 Gov't limits to property ownership - ✔✔1. Property Taxes 2. Eminent domain 3.
police power 4. Escheat
✔✔Private limits to ownerhip - ✔✔1. Easements 2. Covenants, conditions, and
restrictions (CC&R) 3. Conservation
✔✔5 factors of value - ✔✔(DUST D) 1. Desirability 2. Use 3. Scarcity
4. Transferability 5. Demand/ effective purchasing power
✔✔liquidation value - ✔✔"fire sale" seller at a disadvantage-limited market period
✔✔value - ✔✔monetary worth of something
✔✔financing affect on price - ✔✔"terms of sale", always relate to a "cash equivalent"
sale price
✔✔easement - ✔✔right that someone has in somebody else's property; ex. roadway,
public utility, avigation, flowage, and conservation
✔✔reversion - ✔✔after lease
✔✔Transferable Development Rights - ✔✔TDR, development value transferred to other
property
✔✔4 Attitudes and policy toward land evolved - ✔✔1. Aggregation- assembled the
nation 2. Distribution- private use and development of land 3. Preservation- National
parks, USFS 4. Regulation- private land use (police power)
