Real Estate Appraisal Final Exam with
Complete Solutions
The right of the sovereign government to take private property for public use upon the
payment of just compensation is - ANS-Eminent domain
A person owning less than an entire bundle of rights in real estate is said to have - ANS-
Partial interest
Real estate appraisers perform analyses and render opinions or conclusions relating to
the nature, quality, value, or utility of specified interests in, or aspects of, identified -
ANS-real estate
According to law, fixtures are personal property that cannot become real property -
ANS-false
The use of an appraisal is the manner in which the client uses the information in the
appraisal report - ANS-True
The bundler of rights refers to the ownership of personal property - ANS-False
Which of the following an be the purpose of a valuation assignment - ANS-Market value
estimate
According to law, fixtures such as attached kitchen cabinets would be considered -
ANS-Real estate
A local ordinance prohibiting construction of a motel in a specified area is an example of
- ANS-Police power
A fee simple estates include ownership of the full bundle of rights, limited only by the
four powers of government - ANS-True
Farm machinery is an example of a fixture - ANS-False
The purpose of an appraisal is based on the client's need for information about the
defined value of a real property interest - ANS-True
Grocery store shelves installed by a tenant become part of the owner's real estate -
ANS-False
, An ownership interest held by a landlord with the right of use and occupancy conveyed
by lease to others in a - ANS-Leased fee estate
A lease - ANS-Conveys the right of occupancy to another
Air rights are - ANS-The rights to use and control space above a specified parcel of land
A gross lease is - ANS-a lease in which the landlord receives stipulated rent and is
obligated to pay all or nearly all operating expenses and real estate taxes
The highest and fullest estate in land is the - ANS-Fee simple
Life estates - ANS-Represent the full bundle of rights limited by the life of a person
A project with units that are limited both vertically and horizontally and have percentage
ownership in the common elements is - ANS-Condominium
Bob owned a small farm of 100 acres in Hamilton County. When he dies, he had no
heirs, no friends, and no will - ANS-The state will take the property and sell it
You bought a fee simple interest in a parcel of real estate last year. Six months later you
leased the vacant land to john for 50 years, and he built a four story office building on it.
The salable rights are as follows - ANS-You have the leased fee, and john has the
leasehold
Ownership of real property by two or more parties with an undivided interest is called -
ANS-Tenancy in common
The Fifth amendment to the US Constitution - ANS-Requires the government to pay just
compensation for land taken for common good
The term equilibrium value refers to the price that would be available in the market if
supply and demand were in balance - ANS-True
Market value is based on the theory that value is intrinsic in a commodity, good, or
service - ANS-False
Which value reflects the subjective relationship between a particular investor and a
given investment - ANS-investment
Market value and price are usually equal - ANS-False
Desire is a purchasers wish for an item to satisfy human needs or individual wants
beyond essential life support needs - ANS-True
Complete Solutions
The right of the sovereign government to take private property for public use upon the
payment of just compensation is - ANS-Eminent domain
A person owning less than an entire bundle of rights in real estate is said to have - ANS-
Partial interest
Real estate appraisers perform analyses and render opinions or conclusions relating to
the nature, quality, value, or utility of specified interests in, or aspects of, identified -
ANS-real estate
According to law, fixtures are personal property that cannot become real property -
ANS-false
The use of an appraisal is the manner in which the client uses the information in the
appraisal report - ANS-True
The bundler of rights refers to the ownership of personal property - ANS-False
Which of the following an be the purpose of a valuation assignment - ANS-Market value
estimate
According to law, fixtures such as attached kitchen cabinets would be considered -
ANS-Real estate
A local ordinance prohibiting construction of a motel in a specified area is an example of
- ANS-Police power
A fee simple estates include ownership of the full bundle of rights, limited only by the
four powers of government - ANS-True
Farm machinery is an example of a fixture - ANS-False
The purpose of an appraisal is based on the client's need for information about the
defined value of a real property interest - ANS-True
Grocery store shelves installed by a tenant become part of the owner's real estate -
ANS-False
, An ownership interest held by a landlord with the right of use and occupancy conveyed
by lease to others in a - ANS-Leased fee estate
A lease - ANS-Conveys the right of occupancy to another
Air rights are - ANS-The rights to use and control space above a specified parcel of land
A gross lease is - ANS-a lease in which the landlord receives stipulated rent and is
obligated to pay all or nearly all operating expenses and real estate taxes
The highest and fullest estate in land is the - ANS-Fee simple
Life estates - ANS-Represent the full bundle of rights limited by the life of a person
A project with units that are limited both vertically and horizontally and have percentage
ownership in the common elements is - ANS-Condominium
Bob owned a small farm of 100 acres in Hamilton County. When he dies, he had no
heirs, no friends, and no will - ANS-The state will take the property and sell it
You bought a fee simple interest in a parcel of real estate last year. Six months later you
leased the vacant land to john for 50 years, and he built a four story office building on it.
The salable rights are as follows - ANS-You have the leased fee, and john has the
leasehold
Ownership of real property by two or more parties with an undivided interest is called -
ANS-Tenancy in common
The Fifth amendment to the US Constitution - ANS-Requires the government to pay just
compensation for land taken for common good
The term equilibrium value refers to the price that would be available in the market if
supply and demand were in balance - ANS-True
Market value is based on the theory that value is intrinsic in a commodity, good, or
service - ANS-False
Which value reflects the subjective relationship between a particular investor and a
given investment - ANS-investment
Market value and price are usually equal - ANS-False
Desire is a purchasers wish for an item to satisfy human needs or individual wants
beyond essential life support needs - ANS-True
