BASIC APPRAISAL PRINCIPLES FINAL EXAM ACTUAL
QUESTIONS AND ANSWERS SURE A+
✔✔Escheat - ✔✔When property reverts to the the state after a person dies without
leaving a valid will and without heirs property also reverts to the state after
abandonment c
✔✔condemnation - ✔✔Taking private property for public use through the governments
power of eminent domain also called Appropriation
✔✔Appropriation - ✔✔A declaration that a structure is unfit for occupancy and must be
closed or demolished
✔✔Easement - ✔✔A right to use some part of another persons real property for a
particular purpose. An easement is irrevocable and creates an interest in the property
✔✔Appurtenant Easement - ✔✔An easement that benefits a particular piece of property
(dominant tenement).
✔✔Easement in Gross - ✔✔Benefits a person or entity only and not a parcel of land
✔✔Deed - ✔✔An instrument that conveys the grantors interest in real property
✔✔Equitable - ✔✔An interest created in property with the execution of a valid sales
contract with actual title being transferred by deed at a future date. Also vendors
(buyers) interest in property under a land contract ( equitable interest)
✔✔Consideration - ✔✔Anything of value (money, services, goods, promises) given to
induce another person to enter into a contract. Sometimes called valuable consideration
✔✔Devise - ✔✔Real property transferred in a will to transfer real property by will
✔✔Descent - ✔✔When title to property in circumstance where the owner is deceased,
descends by intestate succession to the natural heirs of the deceased.
✔✔Contract - ✔✔An agreement between two or more parties to do, or not to do, a
certain thing. The requirements for an enforceable contract are capacity, mutual
consent, lawful objective and consideration. In addition certain contracts must be in
writing to be enforceable
✔✔Installment sales contract - ✔✔Also referred to as a land contact or contract for deed
are agreements for which the buyer (vendee) makes payment to the seller (vendor) in
exchange for the right to occupy and use the property but no deed or title is transferred
until all or a specified portion of payments have been made
, ✔✔Alienation - ✔✔A legal term that encompasses all methods of transfer (voluntary and
involuntary) of ownership or interest in property.
✔✔Leases - ✔✔Are contracts in which one property pays the other rent in exchange for
possession of real estate
✔✔Cost - ✔✔The dollars needed to develop, produce, or build something.
✔✔Price - ✔✔the amount asked, offered, or paid for a property
✔✔Value - ✔✔The monetary relationship between properties and those who buy, sell,
or use those properties.
✔✔Market value - ✔✔Generally the most probable price that a property should bring in
a competitive and open market. There could be many definitions. The appraiser must
always identify the definition of market value and cite its source in the report.
✔✔arms length transaction - ✔✔A transaction that occurred under typical conditions in
the market place with each of the parties acting in their own best interest.
✔✔Going Concern Value - ✔✔value in use of all property which includes real and
personal tangible and intangible.
✔✔Insurance value - ✔✔The amount that property can be used for, usually only
representing the replacement costs of the structure and disregarding any value for the
land.
✔✔Investment Value - ✔✔The value of a property to a specific investor or type of
investor based on their individual or specified. Investment goals or requirements
✔✔Liquidation value - ✔✔The value of a property sold in a less than typical marketing
period or with less than typical market exposure
✔✔Loan Value - ✔✔The amount of money a lender is willing to let someone borrow to
finance a property.
✔✔salvage value - ✔✔The value of the useful components of a property that could be
removed and salvaged before demolition
✔✔Safe Drinking Water Act - ✔✔Established standards for water intended for human
consumption that include the amount of contaminants permitted and how frequently
public water sources are tested and reported.
QUESTIONS AND ANSWERS SURE A+
✔✔Escheat - ✔✔When property reverts to the the state after a person dies without
leaving a valid will and without heirs property also reverts to the state after
abandonment c
✔✔condemnation - ✔✔Taking private property for public use through the governments
power of eminent domain also called Appropriation
✔✔Appropriation - ✔✔A declaration that a structure is unfit for occupancy and must be
closed or demolished
✔✔Easement - ✔✔A right to use some part of another persons real property for a
particular purpose. An easement is irrevocable and creates an interest in the property
✔✔Appurtenant Easement - ✔✔An easement that benefits a particular piece of property
(dominant tenement).
✔✔Easement in Gross - ✔✔Benefits a person or entity only and not a parcel of land
✔✔Deed - ✔✔An instrument that conveys the grantors interest in real property
✔✔Equitable - ✔✔An interest created in property with the execution of a valid sales
contract with actual title being transferred by deed at a future date. Also vendors
(buyers) interest in property under a land contract ( equitable interest)
✔✔Consideration - ✔✔Anything of value (money, services, goods, promises) given to
induce another person to enter into a contract. Sometimes called valuable consideration
✔✔Devise - ✔✔Real property transferred in a will to transfer real property by will
✔✔Descent - ✔✔When title to property in circumstance where the owner is deceased,
descends by intestate succession to the natural heirs of the deceased.
✔✔Contract - ✔✔An agreement between two or more parties to do, or not to do, a
certain thing. The requirements for an enforceable contract are capacity, mutual
consent, lawful objective and consideration. In addition certain contracts must be in
writing to be enforceable
✔✔Installment sales contract - ✔✔Also referred to as a land contact or contract for deed
are agreements for which the buyer (vendee) makes payment to the seller (vendor) in
exchange for the right to occupy and use the property but no deed or title is transferred
until all or a specified portion of payments have been made
, ✔✔Alienation - ✔✔A legal term that encompasses all methods of transfer (voluntary and
involuntary) of ownership or interest in property.
✔✔Leases - ✔✔Are contracts in which one property pays the other rent in exchange for
possession of real estate
✔✔Cost - ✔✔The dollars needed to develop, produce, or build something.
✔✔Price - ✔✔the amount asked, offered, or paid for a property
✔✔Value - ✔✔The monetary relationship between properties and those who buy, sell,
or use those properties.
✔✔Market value - ✔✔Generally the most probable price that a property should bring in
a competitive and open market. There could be many definitions. The appraiser must
always identify the definition of market value and cite its source in the report.
✔✔arms length transaction - ✔✔A transaction that occurred under typical conditions in
the market place with each of the parties acting in their own best interest.
✔✔Going Concern Value - ✔✔value in use of all property which includes real and
personal tangible and intangible.
✔✔Insurance value - ✔✔The amount that property can be used for, usually only
representing the replacement costs of the structure and disregarding any value for the
land.
✔✔Investment Value - ✔✔The value of a property to a specific investor or type of
investor based on their individual or specified. Investment goals or requirements
✔✔Liquidation value - ✔✔The value of a property sold in a less than typical marketing
period or with less than typical market exposure
✔✔Loan Value - ✔✔The amount of money a lender is willing to let someone borrow to
finance a property.
✔✔salvage value - ✔✔The value of the useful components of a property that could be
removed and salvaged before demolition
✔✔Safe Drinking Water Act - ✔✔Established standards for water intended for human
consumption that include the amount of contaminants permitted and how frequently
public water sources are tested and reported.
