REE 4103 EXAM 1 QUESTIONS & ANSWERS
Private ownership of real property rights is subject to certain restrictions, known as the
four powers of government. Which of the following is NOT one of the four powers of
government that restrict real property rights? - Answer -Deed Restrictions
Items that have been installed or attached to the land or building in a permanent
manner are considered which of the following? - Answer -Real Property
Which of the following is able to perform a formal appraisal of real estate? - Answer -
Only licensed appraisers
Which of the following would not be considered personal property? - Answer -Goodwill
Which of the following would not be considered an intangible asset? - Answer -Tenant
Fixture
Typical uses of appraisals include all of the following except: - Answer -Financial
Redlining
An appraiser _____ - Answer -Measures and develops an opinion of value
The tenant of a small, freestanding retail building is a baker who has installed ovens for
baking bread. The ovens are large and heavy and the back wall of the building had to
be removed for the ovens to be installed. The appraiser is performing a refinancing
appraisal of the real estate only. Should the ovens be included in the appraisal? -
Answer -The appraiser generally would not include the ovens because they are trade
fixtures.
According to professional standards, appraisal practice includes which of the following
types of services? - Answer -Appraisal, appraisal review, and appraisal consulting.
An appraisal provides ....? - Answer -A person's opinion of real property value
Which of the following is the best example of using an appraisal in litigation? - Answer -
Estimating damages created by violations of environmental laws
An appraiser is allowed to provide an estimate of what type of value(s)? - Answer -
Market value, use value, assessed value, fair value, and other types of value identified
and defined at the outset of the appraisal assignment.
In appraisal, appraisers appraise...? - Answer -Real Property Interests
,The legal definition of real estate includes all of the following except: - Answer -Lease
benefits
An estate in land describes the ___________________ that a person has in the real
property. - Answer -Degree, nature, or extent of interest
As the nature and extent of land use controls change, so do the nature and extent of
private land ownership. Consequently, real estate appraisers must be familiar with the
regulations and restrictions that apply to land use in general, but do not need to analyze
how these regulations affect a specific property. - Answer -False
The economic concept of land as a sourse of wealth and an object of value is central to
appraisal theory. - Answer -True
In economics, land is regarded as one of the four agents of production, along with labor,
capital, and entrepreneurial coordination. - Answer -True
Legal matters of particular concern to appraisers include all of the following except: -
Answer -Property Size
The utility of land and the highest and best use to which land can be put are significantly
affected by the physical and locational characteristics of the land and other related
considerations, broadly referred to as geography. - Answer -True
The concepts of land are - Answer -Legal, geographic and environmental, economic,
and social.
All of the following are attributes of land except: - Answer -The supply if land is infitie
Land use decisions are influenced the least by which of the following factors: - Answer -
America's Got Talent
Markets reflect the attitudes and actions of people in response to social and economic
forces and the constraints of law and legal encumbrances. - Answer -True
A large residential lot is an ideal location for industrial development, but the zoning
imposed by the local government ensures that the lot will continue to be used for
residential development. The power of the local government to zone property is through
its: - Answer -Police Power
Professional appraisal standards require the appraiser to identify which interest is to be
valued in an assignment, but the interest valued need not reflect what currently exists. -
Answer -True
Land can be used for all of the following purposes except: - Answer -Climate
, The extent of rights available to private ownership is legally limited due to governmental
controls. - Answer -True
Because land ownership can be limited, ownership rights are the subect of law. The
value of these rights is the focus of real property appraisal. - Answer -True
Legal matters of paricular concern to appraisers include all of the following except: -
Answer -Property Size
A one-unit home owner who builds a new and unique structure will commonly find that -
Answer -Generally, fewer people desire unique structures.
Entrepreneurial Profit is: - Answer -The developer's profit in addition to the return of
his/her equity investment
Which of the following is the best example of using appraisals in investment
counseling? - Answer -Developing an opinion of fair value for financial reporting.
Which of the following is a market transaction where appraisals are used. - Answer -
Purchase/Sale Financing
Which of the following would not be considered part of the real property? - Answer -
Furniture
Those assets that are not tangible real property, tangible personal property, or financial
assets. Something that is not materal, not corporeal, or not substantially real are
_________. - Answer -Intangible assets
Movable items of property that are not permanently affixed to, or part of, the real estate
are considered to be __________. - Answer -Personal Property
The result of the cause and effect relationship among the forces that influence real
property value. - Answer -Change
________ is/are created by the anticipation of benefits to be derived in the future. -
Answer -Value
Theory that when several similar or commensurate commodities, goods, or services are
available, the one with the lowest price attracts the greatest demand and widest
distribution.: - Answer -Substitution
The ability of a product to satisfy a human want, need, or desire is: - Answer -Utility
A finished real estate product is created by combining: - Answer -Land, labor, capital,
and entrepreneurial coordination
Private ownership of real property rights is subject to certain restrictions, known as the
four powers of government. Which of the following is NOT one of the four powers of
government that restrict real property rights? - Answer -Deed Restrictions
Items that have been installed or attached to the land or building in a permanent
manner are considered which of the following? - Answer -Real Property
Which of the following is able to perform a formal appraisal of real estate? - Answer -
Only licensed appraisers
Which of the following would not be considered personal property? - Answer -Goodwill
Which of the following would not be considered an intangible asset? - Answer -Tenant
Fixture
Typical uses of appraisals include all of the following except: - Answer -Financial
Redlining
An appraiser _____ - Answer -Measures and develops an opinion of value
The tenant of a small, freestanding retail building is a baker who has installed ovens for
baking bread. The ovens are large and heavy and the back wall of the building had to
be removed for the ovens to be installed. The appraiser is performing a refinancing
appraisal of the real estate only. Should the ovens be included in the appraisal? -
Answer -The appraiser generally would not include the ovens because they are trade
fixtures.
According to professional standards, appraisal practice includes which of the following
types of services? - Answer -Appraisal, appraisal review, and appraisal consulting.
An appraisal provides ....? - Answer -A person's opinion of real property value
Which of the following is the best example of using an appraisal in litigation? - Answer -
Estimating damages created by violations of environmental laws
An appraiser is allowed to provide an estimate of what type of value(s)? - Answer -
Market value, use value, assessed value, fair value, and other types of value identified
and defined at the outset of the appraisal assignment.
In appraisal, appraisers appraise...? - Answer -Real Property Interests
,The legal definition of real estate includes all of the following except: - Answer -Lease
benefits
An estate in land describes the ___________________ that a person has in the real
property. - Answer -Degree, nature, or extent of interest
As the nature and extent of land use controls change, so do the nature and extent of
private land ownership. Consequently, real estate appraisers must be familiar with the
regulations and restrictions that apply to land use in general, but do not need to analyze
how these regulations affect a specific property. - Answer -False
The economic concept of land as a sourse of wealth and an object of value is central to
appraisal theory. - Answer -True
In economics, land is regarded as one of the four agents of production, along with labor,
capital, and entrepreneurial coordination. - Answer -True
Legal matters of particular concern to appraisers include all of the following except: -
Answer -Property Size
The utility of land and the highest and best use to which land can be put are significantly
affected by the physical and locational characteristics of the land and other related
considerations, broadly referred to as geography. - Answer -True
The concepts of land are - Answer -Legal, geographic and environmental, economic,
and social.
All of the following are attributes of land except: - Answer -The supply if land is infitie
Land use decisions are influenced the least by which of the following factors: - Answer -
America's Got Talent
Markets reflect the attitudes and actions of people in response to social and economic
forces and the constraints of law and legal encumbrances. - Answer -True
A large residential lot is an ideal location for industrial development, but the zoning
imposed by the local government ensures that the lot will continue to be used for
residential development. The power of the local government to zone property is through
its: - Answer -Police Power
Professional appraisal standards require the appraiser to identify which interest is to be
valued in an assignment, but the interest valued need not reflect what currently exists. -
Answer -True
Land can be used for all of the following purposes except: - Answer -Climate
, The extent of rights available to private ownership is legally limited due to governmental
controls. - Answer -True
Because land ownership can be limited, ownership rights are the subect of law. The
value of these rights is the focus of real property appraisal. - Answer -True
Legal matters of paricular concern to appraisers include all of the following except: -
Answer -Property Size
A one-unit home owner who builds a new and unique structure will commonly find that -
Answer -Generally, fewer people desire unique structures.
Entrepreneurial Profit is: - Answer -The developer's profit in addition to the return of
his/her equity investment
Which of the following is the best example of using appraisals in investment
counseling? - Answer -Developing an opinion of fair value for financial reporting.
Which of the following is a market transaction where appraisals are used. - Answer -
Purchase/Sale Financing
Which of the following would not be considered part of the real property? - Answer -
Furniture
Those assets that are not tangible real property, tangible personal property, or financial
assets. Something that is not materal, not corporeal, or not substantially real are
_________. - Answer -Intangible assets
Movable items of property that are not permanently affixed to, or part of, the real estate
are considered to be __________. - Answer -Personal Property
The result of the cause and effect relationship among the forces that influence real
property value. - Answer -Change
________ is/are created by the anticipation of benefits to be derived in the future. -
Answer -Value
Theory that when several similar or commensurate commodities, goods, or services are
available, the one with the lowest price attracts the greatest demand and widest
distribution.: - Answer -Substitution
The ability of a product to satisfy a human want, need, or desire is: - Answer -Utility
A finished real estate product is created by combining: - Answer -Land, labor, capital,
and entrepreneurial coordination
