Humber Real Estate - Course 4, Module 14:
Transactions Involving Development Land
and Farms UPDATED Exam Questions and
CORRECT Answers
- Zoning - the highest and best use should conform with the zoning, unless there is a probable
and imminent prospect that the zoning will change or be amended to accommodate the
highest or best use estimate not currently legal
- Physical possibility of the proposed use in relation to factors such as the size or shape of the
lot, soil condition, water drainage, etc.
- The demand for the proposed use along with its economic and financial feasibility - Correct
Answer- What are 3 key factors that an appraiser considers when estimating the highest and
best use of an undeveloped vacant site?
- Either conform to the zoning or be legal non-conforming
- Conform to the other buildings in the area
- Add value to the land - Correct Answer- To estimate highest and best use for an improved
site, the improvements must:
Plottage - Correct Answer- Land assembly is more commonly known as what?
A process that involves acquiring multiple parcels of property and combining them, thereby
increasing the total land's overall value (vs. their worth separately).
A larger parcel of land may have greater utility and potential for development. A land
developer may find one larger parcel of land more appealing than several small ones. -
Correct Answer- What is Land Assembly?
- Raw land (in its natural state), with no services
- Vacant land with services
- Unoccupied property up to 5 acres with improvements
, - Large tracts of land (5 acres or more) ready for a change in use
- Farmland (operational or not)
- Smaller properties available for assemblage
- Brownfield sites because these sites are frequently located in desirable urban locations and
have the advantage of in-place infrastructure, such as roads, utilities, water/sewer services,
schools and transit facilities - Correct Answer- What types of properties appeal to land
developers?
External, internal. - Correct Answer- Generally risk is assessed as either ____________ or
____________.
Beyond the control of the investor. - Correct Answer- External risks are often what?
Created by the management decisions of an organization. - Correct Answer- Internal risks are
what?
- Financial issues
- Market issues
- Business issues
- Building issues - Correct Answer- Most risk analysts divide risk into what 4 broad
segments?
A legislation that provides for growth plans that establish long-term strategies for identified
growth areas. It also requires that all decisions under the Planning Act or Condominium Act
conform to a growth plan as soon as the growth plan is effective. - Correct Answer- What is
the Places To Grow Act?
- Designation of any geographic region of the province as a growth area with a specific focus
- Development of a growth plan in consultation with local officials, stakeholders, public
groups and members of the public and indigenous communities for a particular region
- Decisions about growth to be made in ways that promotes greater housing and
transportation options; investments in regional public service facilities in downtown areas;
Transactions Involving Development Land
and Farms UPDATED Exam Questions and
CORRECT Answers
- Zoning - the highest and best use should conform with the zoning, unless there is a probable
and imminent prospect that the zoning will change or be amended to accommodate the
highest or best use estimate not currently legal
- Physical possibility of the proposed use in relation to factors such as the size or shape of the
lot, soil condition, water drainage, etc.
- The demand for the proposed use along with its economic and financial feasibility - Correct
Answer- What are 3 key factors that an appraiser considers when estimating the highest and
best use of an undeveloped vacant site?
- Either conform to the zoning or be legal non-conforming
- Conform to the other buildings in the area
- Add value to the land - Correct Answer- To estimate highest and best use for an improved
site, the improvements must:
Plottage - Correct Answer- Land assembly is more commonly known as what?
A process that involves acquiring multiple parcels of property and combining them, thereby
increasing the total land's overall value (vs. their worth separately).
A larger parcel of land may have greater utility and potential for development. A land
developer may find one larger parcel of land more appealing than several small ones. -
Correct Answer- What is Land Assembly?
- Raw land (in its natural state), with no services
- Vacant land with services
- Unoccupied property up to 5 acres with improvements
, - Large tracts of land (5 acres or more) ready for a change in use
- Farmland (operational or not)
- Smaller properties available for assemblage
- Brownfield sites because these sites are frequently located in desirable urban locations and
have the advantage of in-place infrastructure, such as roads, utilities, water/sewer services,
schools and transit facilities - Correct Answer- What types of properties appeal to land
developers?
External, internal. - Correct Answer- Generally risk is assessed as either ____________ or
____________.
Beyond the control of the investor. - Correct Answer- External risks are often what?
Created by the management decisions of an organization. - Correct Answer- Internal risks are
what?
- Financial issues
- Market issues
- Business issues
- Building issues - Correct Answer- Most risk analysts divide risk into what 4 broad
segments?
A legislation that provides for growth plans that establish long-term strategies for identified
growth areas. It also requires that all decisions under the Planning Act or Condominium Act
conform to a growth plan as soon as the growth plan is effective. - Correct Answer- What is
the Places To Grow Act?
- Designation of any geographic region of the province as a growth area with a specific focus
- Development of a growth plan in consultation with local officials, stakeholders, public
groups and members of the public and indigenous communities for a particular region
- Decisions about growth to be made in ways that promotes greater housing and
transportation options; investments in regional public service facilities in downtown areas;
