Basic Appraisal Principles Exam Questions and Answers

Basic Appraisal Principles Exam Questions and Answers Appraisal Review -Answer-The act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment Appraisal -Answer-The act or process of developing an opinion of value; an opinion of value of or pertaining to appraising and related functions, such as appraisal proactive or appraisal services. Appraisal Practice -Answer-Services performed by an individual acting as an appraiser, including but not limited to appraisal, appraisal review, as well as other services. Appraiser -Answer-One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective. Client -Answer-The party or parties who engage an appraiser (by employment or contract) in a specific assignment. Confidential Information -Answer-Info that is either identified by the client as confidential when providing it to an appraiser and that is not available from an other source; or classified as confidential or private by applicable law or regulation Credible -Answer-Worthy of belief FIRREA (what it stands for) -Answer-Financial Institutions Reform, Recovery & Enforcement Act FIRREA (definition) -Answer-An act passed in 1989 as a comprehensive savings and loan bailout and preventative measure against future S&L insolvency. This Act recognizes USPAP as the industry standard for appraisals, and identifies the Appraisal Foundation as the authority for professional appraisal standards Intended Use -Answer-The use or uses of an appraiser's reported appraisal, appraisal received, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment. Intended User -Answer-The client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment. Scope of Work -Answer-The type and extent of research and analyses in an assignment Valuation Services -Answer-Services that pertain to different aspects of property valuation, Valuation services are provided by appraisers and those in other professions. USPAP -Answer-Professional appraisal standards promulgated by The Appraisal Foundation, and widely recognized throughout the US as accepted standards of appraisal practice. Annexation -Answer-Attaching personal property to land so the law views it as part of real property Appropriative Rights -Answer-Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property besides the body of water to apply for an appropriation permit. Appurtenance -Answer-A right that goes with ownership of real property. It is usually transferred with the property but may be sold separately. This is a legal term referring to both physical and nonphysical. Attachments -Answer-Things connected to the land, whether natural or man-made. Man-made attachments are referred to as improvements Bundle of Rights -Answer-All real property rights conferred with ownership including, but not limited to, the right of use, right of enjoyment and right of disposal. Demand -Answer-The need or desire for specific good or service by others Doctrine of Emblements -Answer-The rule that allows an agricultural tenant to re-enter land to harvest crops if the lease ends (through no fault of the tenant) before the crop can be harvested. This rule applies only to the first crop. Tenant-owned crops are referred to as Emblements. Fixture -Answer-A man-made attachment; an item of personal property that has been attached to or closely associated with real property in such a way that it legally becomes part of the real property. Major fixtures are called Improvements. Fructus Industriales -Answer-Plants planted and cultivated by people (fruits of industry) Fructus Narurales -Answer-Naturally occuring plants ("fruits of nature") Government Survey System -Answer-A legal description for lad referencing principal meridians and base lines designated throughout the country. Immobility -Answer-A physical characteristic of real state referring to the fact that real estate cannot move form one place to another Indestructibility -Answer-A physical characteristic of real estate referring to the fact that that is cannot be destroyed Littoral Rights -Answer-The water rights of a landowner whose property is adjacent to a lake or contains a lake Riparian Rights -Answer-The water rights of a landowner whose property is adjacent to or crossed by a river Lot & Block -Answer-A legal description used for platted property. The description states only the property's lot and block number in a particular subdivision; to find out the exact location of property boundaries, the plat map for the subdivision must be consulted at the county recorder's office. Metes & Bounds -Answer-A legal description that starts at an easily identifiable point of beginning (POB) then describes the property's boundaries in terms of courses (compass directions) and distances, ultimately returning to the POB Personal Property -Answer-Tangible items not permanently attached to or part of real estate. Any property that is not real property. Movable property not affixed to land. Property -Answer-The rights of ownership in a thing, such as the right to use, posses, transfer, or encumber real estate. Something that is