IAAO RES Case Study Exam
WHAT IS AN APPRAISAL? - Answer-An appraisal is an act of estimating a value, normally in writing. It is
merely an opinion of value as of a given date. It is based on both the physical and legal nature of
property. It is a value established as of a given date.
Bundle of Rights - Answer-Property rights can be divided and shared. The
rights associated with the ownership of property are referred to as the bundle of rights.
Bundle of Rights (SLUGER) - Answer-1. Sell
2. Lease
3. Use
4. Give away
5. Enter or exit
6. Refuse to do anything
Police Power - Answer-The right to regulate the use of property for the
public welfare in the areas of safety, health, zoning, building codes, traffic, and sanitary regulations.
Eminent domain - Answer-The right to take the property for public use
provided that just compensation is paid.
, Taxation - Answer-The right to tax the property for support of the
government.
Escheat - Answer-The right to have property revert to the state for
nonpayment of taxes or where there are no legal heirs, or a decedent who dies intestate.
Examples of private limitations - Answer-covenants, subdivisions restrictions, mortgages, liens, and
leases.
Real property - Answer-The sum of the tangible and intangible rights in
land and improvements.
Real estate - Answer-The physical land and everything permanently
attached to it
Anticipation - Answer-Present worth of future benefits
associated with the ownership of property. It is the predominant principle in the income approach.
Balance - Answer-Proper mix of types and use of property. It relates
to both the property and the environment in which the property is located.
Competition - Answer-Availability must be in harmony with demand. If
one or the other is in excess, prices escalate or drop.
Substitution - Answer-
WHAT IS AN APPRAISAL? - Answer-An appraisal is an act of estimating a value, normally in writing. It is
merely an opinion of value as of a given date. It is based on both the physical and legal nature of
property. It is a value established as of a given date.
Bundle of Rights - Answer-Property rights can be divided and shared. The
rights associated with the ownership of property are referred to as the bundle of rights.
Bundle of Rights (SLUGER) - Answer-1. Sell
2. Lease
3. Use
4. Give away
5. Enter or exit
6. Refuse to do anything
Police Power - Answer-The right to regulate the use of property for the
public welfare in the areas of safety, health, zoning, building codes, traffic, and sanitary regulations.
Eminent domain - Answer-The right to take the property for public use
provided that just compensation is paid.
, Taxation - Answer-The right to tax the property for support of the
government.
Escheat - Answer-The right to have property revert to the state for
nonpayment of taxes or where there are no legal heirs, or a decedent who dies intestate.
Examples of private limitations - Answer-covenants, subdivisions restrictions, mortgages, liens, and
leases.
Real property - Answer-The sum of the tangible and intangible rights in
land and improvements.
Real estate - Answer-The physical land and everything permanently
attached to it
Anticipation - Answer-Present worth of future benefits
associated with the ownership of property. It is the predominant principle in the income approach.
Balance - Answer-Proper mix of types and use of property. It relates
to both the property and the environment in which the property is located.
Competition - Answer-Availability must be in harmony with demand. If
one or the other is in excess, prices escalate or drop.
Substitution - Answer-
