Azure Tide Section 16 Test Question with Answers

Azure Tide Section 16 Test Question with Answers The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) is a provision under Title XI that mandates states to license and certify appraisers. - Answer-True In real estate, the definition of highest and best use is always based on how the property is currently being used. - Answer-False The definition of highest and best use involves four tests. It is 1. the most probable use of land or improved property that is legally possible, 2. physically possible, 3. financially feasible (and appropriately supportable) from the market, and 4. which results in maximum profitability. According to Florida Statutes 475, real estate licensees may perform appraisal for a commission as long as the appraisal follows USPAP standards, are not being performed for a federally related transaction, and the licensee is not referring to him or herself as an actual certified appraiser. - Answer-False According to Florida Statutes 475, real estate licensees may perform appraisal for compensation as long as the appraisal follows USPAP standards, are not being performed for a federally related transaction, and the licensee is not referring to him or herself as an actual certified appraiser. Must be a flat fee not a percentage of the value Cost is how much money is required to produce the item. Price is the amount actually paid for an item. And value is how much something is worth to the average buyer and seller at the time value is being determined. - Answer-True The Concept of Substitution means that a buyer will be willing to pay more for a property that has lower quality features substituted with higher quality features. - Answer-False The Concept of Substitution means that a prudent buyer or investor will pay no more for a property than the cost of acquiring, through purchase or construction, an equally desirable alternative property.