Real Estate Appraisal Test Questions with 100% Verified Answers
The act or process of critically studying a report prepared by another is called: - -A
review
Page | 1
Federally related transactions are transactions: - -involving a federal agency or
regulatory
An item that was formerly personal property that has become real property is called: -
-A fixture
An appurtenance is something that - -Goes along with the ownership of the land
Possessory interests are called estates while non-possessory interests are known as -
-Encumbrances
An interest that is held by a creditor is called a - -Lien
A property that is subject to an easement is known as - -Servient tenement
The power of the government to take private property for public use is called - -
Eminent domain
Ad valorem is Latin for - -According to value
Escheat is the power to have property - -Revert to the state if the owner dies without
a will
, All of the following are classified as characteristics of value except - -Attractiveness
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Which of the following refers to the cost of labor and materials used to build an
improvement - -Direct costs
The cost to create an exact replica of a building using the same design, materials, and
construction methods as the original is called - -Reproduction cost
Which appraisal principle holds that value of a property cannot exceed the value of the
equivalent substitute properties that are available in the marketplace - -Principle of
substitution
Completion occurs when - -Supply and demand are out of balance
What principle recognizes that the forces of supply and demand are in constant flux -
-Principle of change
What principle states that value is affected by the expectation of future benefits to be
gained from owning property - -Principle of anticipation
The principle of conformity states that value is enhanced when the uses of surrounding
properties - -Conform to the use of the subject property
Which of the following are considered agents of production - -Capital and land, labor
and coordination
The act or process of critically studying a report prepared by another is called: - -A
review
Page | 1
Federally related transactions are transactions: - -involving a federal agency or
regulatory
An item that was formerly personal property that has become real property is called: -
-A fixture
An appurtenance is something that - -Goes along with the ownership of the land
Possessory interests are called estates while non-possessory interests are known as -
-Encumbrances
An interest that is held by a creditor is called a - -Lien
A property that is subject to an easement is known as - -Servient tenement
The power of the government to take private property for public use is called - -
Eminent domain
Ad valorem is Latin for - -According to value
Escheat is the power to have property - -Revert to the state if the owner dies without
a will
, All of the following are classified as characteristics of value except - -Attractiveness
Page | 2
Which of the following refers to the cost of labor and materials used to build an
improvement - -Direct costs
The cost to create an exact replica of a building using the same design, materials, and
construction methods as the original is called - -Reproduction cost
Which appraisal principle holds that value of a property cannot exceed the value of the
equivalent substitute properties that are available in the marketplace - -Principle of
substitution
Completion occurs when - -Supply and demand are out of balance
What principle recognizes that the forces of supply and demand are in constant flux -
-Principle of change
What principle states that value is affected by the expectation of future benefits to be
gained from owning property - -Principle of anticipation
The principle of conformity states that value is enhanced when the uses of surrounding
properties - -Conform to the use of the subject property
Which of the following are considered agents of production - -Capital and land, labor
and coordination
