IAAO -COURSE 201 QUESTIONS AND
ANSWERS
Land n- nAnswer n- nThe nsurface nof nthe nearth nand neverything nabove nand nbeneath nit n.
Attributes nof nLand n- nAnswer n- nPermanent, nUnique, nFinite nSupply, nFunctional nand nStationary
Characteristics nof nLand n- nAnswer n- nDemand, nUtility, nScarcity nand nTransferability
Raw nland n- nAnswer n- nunimproved nland nin nits nnatural nstate nprior nto ngrading, nconstruction nand
nsubdividing.
Agricultural nland n- nAnswer n- nreferred nto nas nundeveloped nland nexcept nwhen nplatted nsubdivision
Improved nland n- nAnswer n- nImprovements nthat nprepare nthe nland nfor ndevelopment n(to nbe nbuilt
nupon) nare nconsidered na nsite.
On-site nimprovements n- nAnswer n- ngrading, npaving, ndriveways, nlandscaping, nsewers nand nutility
nhookups
off=site nimprovements n- nAnswer n- nstreets, nsidewalks, ncurbing, ntraffic nlights, nstreet nlights nand
nwater nmains
Improvement non nland n- nAnswer n- nany nstructure nor nbuilding non nthe nsite
Zoning n- nAnswer n- nis nvery nimportant nto nvaluing nand ndetermines nland nclassification;essential nin
ndetermining nthe nhighest nand nbest nuse.
, Rights nof nOwnership n- nAnswer n- nSale, nLease, nUse, nGive naway, nenter nor nexit nand nrefuses nto ndo
nanything
Fee nSimple nor nFee nsimple nabsolute nOwnership n- nAnswer n- nAll nrights nare nowned nfor na nproperty.
Government nRestrictions n- nAnswer n- nTaxation, nEminent ndomain, nPolice nPower, nEscheat
Police nPower n- nAnswer n- nregulate nthe nuse nof nproperty nfor npublic nwelfare nsuch nas nzoning
Eminent nDomain n- nAnswer n- nthe nact nof ntaking nproperty nfor npublic nuse- nowner nmust nreceive
nreasonable ncompensation.
Private nrestrictions non nownership nrights n- nAnswer n- nEasements nand nrights-of-way n(including nair
neasements)
Agents nof nProduction n- nAnswer n- nLand, nLabor, nCapital, nEntrepreneurial nCoordination
Agents nof nProduction n- nAnswer n- nbased non nthe nPrinciple nof nBalance
Entrepreneurial nProfit n- nAnswer n- nthe nreturn nto nthe ninvestor nfor ntaking nthe ninvestment nrisk non
na ndevelopment, nas npart nof nthe nManagement n(Coordination)
Highest nand nBest nUse n- nAnswer n- nproduce nthe ngreatest neconomic nnet nreturn nto nthe nproperty.
Principle nof nAnticipation n- nAnswer n- nfuture nbenefits nthe nincome nwill nbring nto nthe nproperty.
Factors nthat ninfluences nland nvalue n- nAnswer n- nPhysical, neconomic, ngovernmental, nsocial
ANSWERS
Land n- nAnswer n- nThe nsurface nof nthe nearth nand neverything nabove nand nbeneath nit n.
Attributes nof nLand n- nAnswer n- nPermanent, nUnique, nFinite nSupply, nFunctional nand nStationary
Characteristics nof nLand n- nAnswer n- nDemand, nUtility, nScarcity nand nTransferability
Raw nland n- nAnswer n- nunimproved nland nin nits nnatural nstate nprior nto ngrading, nconstruction nand
nsubdividing.
Agricultural nland n- nAnswer n- nreferred nto nas nundeveloped nland nexcept nwhen nplatted nsubdivision
Improved nland n- nAnswer n- nImprovements nthat nprepare nthe nland nfor ndevelopment n(to nbe nbuilt
nupon) nare nconsidered na nsite.
On-site nimprovements n- nAnswer n- ngrading, npaving, ndriveways, nlandscaping, nsewers nand nutility
nhookups
off=site nimprovements n- nAnswer n- nstreets, nsidewalks, ncurbing, ntraffic nlights, nstreet nlights nand
nwater nmains
Improvement non nland n- nAnswer n- nany nstructure nor nbuilding non nthe nsite
Zoning n- nAnswer n- nis nvery nimportant nto nvaluing nand ndetermines nland nclassification;essential nin
ndetermining nthe nhighest nand nbest nuse.
, Rights nof nOwnership n- nAnswer n- nSale, nLease, nUse, nGive naway, nenter nor nexit nand nrefuses nto ndo
nanything
Fee nSimple nor nFee nsimple nabsolute nOwnership n- nAnswer n- nAll nrights nare nowned nfor na nproperty.
Government nRestrictions n- nAnswer n- nTaxation, nEminent ndomain, nPolice nPower, nEscheat
Police nPower n- nAnswer n- nregulate nthe nuse nof nproperty nfor npublic nwelfare nsuch nas nzoning
Eminent nDomain n- nAnswer n- nthe nact nof ntaking nproperty nfor npublic nuse- nowner nmust nreceive
nreasonable ncompensation.
Private nrestrictions non nownership nrights n- nAnswer n- nEasements nand nrights-of-way n(including nair
neasements)
Agents nof nProduction n- nAnswer n- nLand, nLabor, nCapital, nEntrepreneurial nCoordination
Agents nof nProduction n- nAnswer n- nbased non nthe nPrinciple nof nBalance
Entrepreneurial nProfit n- nAnswer n- nthe nreturn nto nthe ninvestor nfor ntaking nthe ninvestment nrisk non
na ndevelopment, nas npart nof nthe nManagement n(Coordination)
Highest nand nBest nUse n- nAnswer n- nproduce nthe ngreatest neconomic nnet nreturn nto nthe nproperty.
Principle nof nAnticipation n- nAnswer n- nfuture nbenefits nthe nincome nwill nbring nto nthe nproperty.
Factors nthat ninfluences nland nvalue n- nAnswer n- nPhysical, neconomic, ngovernmental, nsocial
