CERTIFIED GENERAL APPRAISER DEFINITIONS
AND FORMULAS FINAL EXAM 2024-2025
What is the Cap Rate Formula Using LTV? - Answer: Cap Rate = (Loan-to-Value
x Mortgage Constant) + (Equity% x Equity Divide Ratio).
Who assesses USPAP violations? - ANSWER The State Appraiser Regulatory
Agency
How many square feet is one square yard? - ANSWER 9.
When is the leasehold positive? - ANSWER When market rent exceeds contract
rent
What is the extraction appraisal definition? Extraction appraisal is a process for
determining the value of land or a site that has not been improved. It is a frequent
method when the land value is the primary item to be assessed or when there are
insufficient comparable vacant land sales.
What is the allocation appraisal definition? Allocation appraisal is a method used
by appraisers to evaluate the worth of land or property by comparing it to other
properties in the vicinity.
What is the residual appraisal definition? - ANSWER A residual appraisal is a
valuation approach that calculates the value of a development property by
subtracting the development expenditures from the expected returns. The leftover is
typically the land value or development profit.
What are the most significant criteria for comparative selection? - ANSWER Open
market transaction.
, What is an easement appurtenant? - Answer An easement that allows a property
owner a right to use sections of a bordering property controlled by another person.
What is a prescription-based easement? - ANSWER This form of easement takes
effect when one party uses the other's land for a certain purpose over an extended
time, with or without permission.
What is a gross easement? - ANSWER The main distinction between an easement
in gross and other forms of easements is that there is no dominating estate involved.
Some of the easements presented provide obvious benefits to another property
owner, such as giving your neighbors access to private roads, but this is not the
case here. A vast easement is typically used when a utility provider wants to install
power lines through private property or, less commonly, when a business wants to
place a billboard on your land.
What is joint tenancy? - ANSWER A form of co-ownership in which two or more
people hold a property or asset in equal parts.
How do shared tenancies function in terms of ownership? - ANSWER For
example, if a couple buys a house as joint tenants, they both own 100% of the
property.
What happens in a joint tenancy when one of the co-owners dies? - ANSWER The
other co-owners typically have quick access to the property.
Who usually uses joint tenancies? - ANSWER: Long-term relationships.
What is tenancy in common? - ANSWER A sort of joint ownership in which
several persons own shares of a property or asset.
Who frequently uses tenancies in common? Friends, please respond.
AND FORMULAS FINAL EXAM 2024-2025
What is the Cap Rate Formula Using LTV? - Answer: Cap Rate = (Loan-to-Value
x Mortgage Constant) + (Equity% x Equity Divide Ratio).
Who assesses USPAP violations? - ANSWER The State Appraiser Regulatory
Agency
How many square feet is one square yard? - ANSWER 9.
When is the leasehold positive? - ANSWER When market rent exceeds contract
rent
What is the extraction appraisal definition? Extraction appraisal is a process for
determining the value of land or a site that has not been improved. It is a frequent
method when the land value is the primary item to be assessed or when there are
insufficient comparable vacant land sales.
What is the allocation appraisal definition? Allocation appraisal is a method used
by appraisers to evaluate the worth of land or property by comparing it to other
properties in the vicinity.
What is the residual appraisal definition? - ANSWER A residual appraisal is a
valuation approach that calculates the value of a development property by
subtracting the development expenditures from the expected returns. The leftover is
typically the land value or development profit.
What are the most significant criteria for comparative selection? - ANSWER Open
market transaction.
, What is an easement appurtenant? - Answer An easement that allows a property
owner a right to use sections of a bordering property controlled by another person.
What is a prescription-based easement? - ANSWER This form of easement takes
effect when one party uses the other's land for a certain purpose over an extended
time, with or without permission.
What is a gross easement? - ANSWER The main distinction between an easement
in gross and other forms of easements is that there is no dominating estate involved.
Some of the easements presented provide obvious benefits to another property
owner, such as giving your neighbors access to private roads, but this is not the
case here. A vast easement is typically used when a utility provider wants to install
power lines through private property or, less commonly, when a business wants to
place a billboard on your land.
What is joint tenancy? - ANSWER A form of co-ownership in which two or more
people hold a property or asset in equal parts.
How do shared tenancies function in terms of ownership? - ANSWER For
example, if a couple buys a house as joint tenants, they both own 100% of the
property.
What happens in a joint tenancy when one of the co-owners dies? - ANSWER The
other co-owners typically have quick access to the property.
Who usually uses joint tenancies? - ANSWER: Long-term relationships.
What is tenancy in common? - ANSWER A sort of joint ownership in which
several persons own shares of a property or asset.
Who frequently uses tenancies in common? Friends, please respond.
