IAAO 102 EXAMS SCRIPT ALL ANSWERS AND
QUESTIONS SET A+
✔✔Mortgage - ✔✔most common type of financing for real estate.
✔✔Junior Mortgage - ✔✔typical a second mortgage
✔✔Chattel Mortgage - ✔✔a mortgage only on personal property.
✔✔Amortized Mortgage - ✔✔Fixed rate mortgage permanent loan in which the sum of
the principal and interest payments remains fixed throughout the term of the loan.
✔✔Four factors to capture overall yield rate (Yô) - - ✔✔1. Safe rate
2. Risk Rate
3. Rate for non-liquidity
4. Rate for Management
✔✔Recapture Rate - ✔✔Provides for the return of the investment in the wasting portion
of the assets.
✔✔Effective Tax Rate (ETR) - ✔✔Reflect the relationship between the real estate taxes
and the value of the property.
✔✔Income Approach - ✔✔One of the three approaches to value in which the appraiser
derives a value indication by converting anticipated benefits through ownership of
income -producing property is the ______________
✔✔What's a lease? - ✔✔Considered both a contract and conveyance
✔✔Month to Month Lease - ✔✔short term lease that May or may not me in written form.
This type of lease provides no security for the tenant or landlord.
✔✔Percentage Lease - ✔✔a contract which calls for a fixed minimum base rent and a
variable rent.
QUESTIONS SET A+
✔✔Mortgage - ✔✔most common type of financing for real estate.
✔✔Junior Mortgage - ✔✔typical a second mortgage
✔✔Chattel Mortgage - ✔✔a mortgage only on personal property.
✔✔Amortized Mortgage - ✔✔Fixed rate mortgage permanent loan in which the sum of
the principal and interest payments remains fixed throughout the term of the loan.
✔✔Four factors to capture overall yield rate (Yô) - - ✔✔1. Safe rate
2. Risk Rate
3. Rate for non-liquidity
4. Rate for Management
✔✔Recapture Rate - ✔✔Provides for the return of the investment in the wasting portion
of the assets.
✔✔Effective Tax Rate (ETR) - ✔✔Reflect the relationship between the real estate taxes
and the value of the property.
✔✔Income Approach - ✔✔One of the three approaches to value in which the appraiser
derives a value indication by converting anticipated benefits through ownership of
income -producing property is the ______________
✔✔What's a lease? - ✔✔Considered both a contract and conveyance
✔✔Month to Month Lease - ✔✔short term lease that May or may not me in written form.
This type of lease provides no security for the tenant or landlord.
✔✔Percentage Lease - ✔✔a contract which calls for a fixed minimum base rent and a
variable rent.
