Mckissock Basic Appraisal Principles I Final Exam Quiz with Complete Solutions

Mckissock Basic Appraisal Principles I Final Exam Quiz with Complete Solutions The _____ has oversight authority over state appraisal boards. ASC (Appraisal Subcommittee) Which of the below is a requirement of a valid real estate contract? consideration, in writing and signed, and lawful objective "The interaction of buyers and sellers who trade long-term or intermediate-term money instruments" is the definition of the _____________ market. capital An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area" is the definition of market study A gathering of people for the buying and selling of things" is the definition of market Which of the following types of investments has historically generated the highest return on investment? real estate Real estate includes all of the following EXCEPT except property rights The Conduct Section of the ETHICS RULE states, in part, that an appraiser must perform assignments with Impartiality, objectivity, and independence All of the following could be participants in a real property market EXCEPT except assessors Twenty years ago, most appraisal reports that were sent electronically were sent using _____ technology; today, most appraisals are sent electronically using a _______ format. EDI, PDF A property is owned as tenancy in severalty. How many owners are there? not enough information to determine What type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit? cooperative A(n) __________ contract is one that is not been fully performed or completed. executory Modern definitions of the word "appraisal" have replaced the word _______ with ________. estimate, opinion The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires" is the definition of leased fee interest Trespassing on the domain of another" is the definition of encroachment A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural" is the definition of district All of the following could lead to a non-arm's-length transaction EXCEPT except knowledgeable buyer and seller The appraisal standards and qualification criteria promulgated by the boards of The Appraisal Foundation achieves legal authority by adoption, citation or implementation by government agencies A business arrangement in which two or more persons jointly own a business and share in its profits and losses" is the definition of partnership Which statement about price, cost, and value is TRUE? Price and value can be the same in some situations. The _______ maintains a national registry of state certified and licensed appraisers who are eligible to perform appraisals in federally related transactions. Appraisal Subcommittee Which two of the following would be private restrictions on property rights? deed restriction and mechanic's lien The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease" is the definition of leasehold estate A homeowner fears the construction of a factory nearby will decrease the value of her property. This illustrates the principle of externalities Electronic Data Interchange for transmitting appraisal reports became popular in the late 1990's The Management Section of the ETHICS RULE states, in part, "An appraiser must __________ that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment. disclose An appraisal is defined as the act or process of developing an ________ of _______. opinion, value In the 1970s, who developed uniform rules for mortgage underwriting? Fannie Mae and Freddic Mac Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of transferable development rights A rancher owns six full sections plus three quarter sections. How many acres is that? 4320 The current number of appraisal education hours required for Certified Residential Appraiser applicants is ______ hours. 200 In analyzing a real estate purchase contract you should be able to find all of the following items EXCEPT prior transfer date and purchase price Who retains final authority over revisions to USPAP? the Appraisal Standards Board The primary operators in the secondary mortgage market include all of the following EXCEPT except FHA In a particular market, there is a demand for 500 houses per year, and there are currently 1,500 houses for sale. What does this most likely indicate? there is a three-year supply of homes currently for sale Which is NOT a characteristic of tenancy in common? there is a right of survivorship In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied. trustee Which of these would be considered a public restriction on real property ownership? escheat The ETHICS RULE of USPAP is the ________ of five Rules in USPAP. FIRST What is a corporation or trust that functions like a mutual fund for real estate, by combining the capital of many investors to acquire real estate? REIT (Real Estate Investment Trust) The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT except Fannie Mae The party or parties who engage, by employment or contract, an appraiser in a specific assignment" is the definition of client Reporting requirements for real property appraisers are set forth in STANDARD ___ of the Uniform Standards of Professional Appraisal Practice. 2 The Appraisal Foundation is a not for profit organization The four agents of production are land, ________, capital, and _____________. labor, entrepreneurial coordination The appraisal standards and qualification criteria that are published by The Appraisal Foundation achieve legal authority by adoption, citation or implementation by government agencies with the power to regulate or administrate A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied" is the definition of a(n) ______________ mortgage. adjustable rate The nationally-recognized ethical and performance standards for appraisers are known as USPAP Which is NOT true of a fee simple estate? It is not limited by governmental powers. USPAP includes performance standards for the appraisal of real property, personal property, and business/intangible property The ________ is responsible for establishing criteria for individuals to become real property appraisers. Appraisal Qualifications Board Which of the following would NOT be considered a negative easement? access right of way The real property market is generally classified as a(n) __________ market. imperfect The ______ maintains a National Registry of appraisers. ASC Police power would include which of the following building codes, zoning, environmental regulations Sonic measuring devices employ _____________ to take measurements. sound waves The primary purpose of USPAP is to protect public trust In appraisal, the concept that a higher-priced property will be worth less in a lower-priced neighborhood than it would in a neighborhood of comparable properties" is the definition of the principle of regression How is the Appraisal Subcommittee funded? through a National Registry fee charged to each appraiser Supply and demand move in a(n) ____________ relationship. inverse USPAP defines _________ as the amount asked, offered, or paid for a property. price The ______ publishes "other communications" in the form of Advisory Opinions and USPAP FAQs. ASB When estimating the value of a fireplace in a single-family home, the most important principle is the principle of contribution A right or interest in property" is a(n) estate The four components of the Appraiser Qualification Criteria are: qualifying education, examination, experience, continuing education What is the purpose of a state's statute of frauds? requires certain documents to be in writing The oldest system of legal descriptions for real estate is: metes and bounds The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc." is the definition of _________ rights. subsurface The current number of appraisal education hours required for Licensed Residential Appraiser applicants is ______ hours. 150 The current number of appraisal education hours required for Certified General Appraiser applicants is ______ hours. 300 Low interest rates encourage __________, while high interest rates encourage _________. borrowing, saving Which of these would be considered a public restriction on real property ownership? escheat Which of these factors would result in a violation of USPAP if the appraiser based his or her appraisal fee on it? the appraiser's value opinion Under the current education criteria, an applicant for Appraiser Trainee must have completed ___ creditable class hours as specified in the required Core Curriculum Appendix. 75 The four elements of value are desire, _________, scarcity, and ________. utility, effective purchasing power Which valuation approach relies most heavily on the principle of substitution? sales comparison The principle of supply and demand states that the price of a commodity, good, or service varies __________, but not necessarily _____________, with demand. directly, proportionately In property measurement, a chain contains 100 links, which measures _______ feet. 66 In property measurement, 1 rod or 25 links, which measures _______ feet. 16.5 ft In property measurement, 1 furlong or 10 chains, which measures _______ feet. 660 ft A market analysis examines ____________ , where a marketability analysis examines ______________. a type of property, a specific property Under the current qualifying education criteria, there are college-level course requirements for __________ classifications. both Certified Residential and Certified General The general rule of contracting with minors is that a contract with a minor is voidable at the minor's option The strongest form of deed is the __________ deed. warranty The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building's use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms" is the definition of functional utility A facade easement is a type of_______________ easement. historic preservation Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of transferable development rights The website with the largest amount of demographics information is C When comparing printers, make sure to compare the cost per printed page