Humber Real Estate - Course 4, Module
14: Transactions Involving Development
Land and Farms Exam 2026 Questions
and Answers
- Zoning - the highest and best use should conform with the zoning, unless there is
a probable and imminent prospect that the zoning will change or be amended to
accommodate the highest or best use estimate not currently legal
- Physical possibility of the proposed use in relation to factors such as the size or
shape of the lot, soil condition, water drainage, etc.
- The demand for the proposed use along with its economic and financial
feasibility - Correct answer-What are 3 key factors that an appraiser considers
when estimating the highest and best use of an undeveloped vacant site?
- Either conform to the zoning or be legal non-conforming
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,- Conform to the other buildings in the area
- Add value to the land - Correct answer-To estimate highest and best use for an
improved site, the improvements must:
Plottage - Correct answer-Land assembly is more commonly known as what?
A process that involves acquiring multiple parcels of property and combining
them, thereby increasing the total land's overall value (vs. their worth separately).
A larger parcel of land may have greater utility and potential for development. A
land developer may find one larger parcel of land more appealing than several
small ones. - Correct answer-What is Land Assembly?
- Raw land (in its natural state), with no services
- Vacant land with services
- Unoccupied property up to 5 acres with improvements
- Large tracts of land (5 acres or more) ready for a change in use
- Farmland (operational or not)
- Smaller properties available for assemblage
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, - Brownfield sites because these sites are frequently located in desirable urban
locations and have the advantage of in-place infrastructure, such as roads, utilities,
water/sewer services, schools and transit facilities - Correct answer-What types of
properties appeal to land developers?
External, internal. - Correct answer-Generally risk is assessed as either
____________ or ____________.
Beyond the control of the investor. - Correct answer-External risks are often what?
Created by the management decisions of an organization. - Correct answer-Internal
risks are what?
- Financial issues
- Market issues
- Business issues
- Building issues - Correct answer-Most risk analysts divide risk into what 4 broad
segments?
A legislation that provides for growth plans that establish long-term strategies for
identified growth areas. It also requires that all decisions under the Planning Act or
Condominium Act conform to a growth plan as soon as the growth plan is
effective. - Correct answer-What is the Places To Grow Act?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
14: Transactions Involving Development
Land and Farms Exam 2026 Questions
and Answers
- Zoning - the highest and best use should conform with the zoning, unless there is
a probable and imminent prospect that the zoning will change or be amended to
accommodate the highest or best use estimate not currently legal
- Physical possibility of the proposed use in relation to factors such as the size or
shape of the lot, soil condition, water drainage, etc.
- The demand for the proposed use along with its economic and financial
feasibility - Correct answer-What are 3 key factors that an appraiser considers
when estimating the highest and best use of an undeveloped vacant site?
- Either conform to the zoning or be legal non-conforming
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,- Conform to the other buildings in the area
- Add value to the land - Correct answer-To estimate highest and best use for an
improved site, the improvements must:
Plottage - Correct answer-Land assembly is more commonly known as what?
A process that involves acquiring multiple parcels of property and combining
them, thereby increasing the total land's overall value (vs. their worth separately).
A larger parcel of land may have greater utility and potential for development. A
land developer may find one larger parcel of land more appealing than several
small ones. - Correct answer-What is Land Assembly?
- Raw land (in its natural state), with no services
- Vacant land with services
- Unoccupied property up to 5 acres with improvements
- Large tracts of land (5 acres or more) ready for a change in use
- Farmland (operational or not)
- Smaller properties available for assemblage
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, - Brownfield sites because these sites are frequently located in desirable urban
locations and have the advantage of in-place infrastructure, such as roads, utilities,
water/sewer services, schools and transit facilities - Correct answer-What types of
properties appeal to land developers?
External, internal. - Correct answer-Generally risk is assessed as either
____________ or ____________.
Beyond the control of the investor. - Correct answer-External risks are often what?
Created by the management decisions of an organization. - Correct answer-Internal
risks are what?
- Financial issues
- Market issues
- Business issues
- Building issues - Correct answer-Most risk analysts divide risk into what 4 broad
segments?
A legislation that provides for growth plans that establish long-term strategies for
identified growth areas. It also requires that all decisions under the Planning Act or
Condominium Act conform to a growth plan as soon as the growth plan is
effective. - Correct answer-What is the Places To Grow Act?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
