REE 4103 EXAM 1 BAILEY QUESTIONS & ANSWERS
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
_________.
Finite assets
Personal property
Real property
Intangible assets - Answer -intangible assets
Movable items of property that are not permanently affixed to, or part of, the real estate
are considered to be __________.
Intangible assets
Finite assets
Personal property
Real property - Answer -personal property
An estate in land describes the ___________________ that a person has in the real
property.
Group of answer choices
inheritence
value
fee simple interest
degree, nature, or extent of interest - Answer -degree, nature, or extent of interest
An appraisal provides ....?
A person's determination of the minimum amount a property should sell for.
A person's opinion of real property value.
A persons' determination of the maximum amount a property should sell for in the
market.
A person's factual determination of a specific real property value. - Answer -A person's
opinion of real property value.
Which of the following is a market transaction where appraisals are used.
Property tax assessments
Purchase/Sale Financing
Eminent domain litigation
Divorce litigation - Answer -purchase/sale financing
,In appraisal, appraisers appraise...?
Real estate
Real estate and fixtures
Real property interests
Real estate and personal property - Answer -Real property interests
Items that have been installed or attached to the land or building in a permanent
manner are considered which of the following?
Finite assets
Personal property
Real property
Intangible assets - Answer -real property
Appraisals are used for all of the following except:
Appraisals provide unbiased and disinterested opinions of value.
Appraisals advise the public on everyday questions of value.
Appraisals provide a document that is capable of being reviewed by lenders.
Appraisals guarantee the market value of property to a lender. - Answer -Appraisals
guarantee the market value of property to a lender.
Which of the following is the best example of using an appraisal in litigation?
Develope feasibility of construction or renovation project.
Estimating damages created by violations of environmental laws.
Developing an opinion of fair value for financial reporting.
To establish a basis for real property exchange. - Answer -Estimating damages created
by violations of environmental laws.
Which of the following is the best example of using appraisals in investment
counseling?
Developing an opinion of fair value for financial reporting.
Devleoping an opinion of market value of real property offered as collateral for proposed
mortgage loan.
To establish a basis for real property exchange.
Developing an opinion of the market value of a property in contract disputes. - Answer -
Developing an opinion of fair value for financial reporting.
All of the following are attributes of land except:
Land is physically immobile
Land is durable
The supply if land is infinite
,Each parcel is unique - Answer -The supply if land is infinite
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.
T/F - Answer -True
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.
T/F - Answer -False
Land use decisions are influenced the least by which of the following factors:
America's Got Talent
Economic and population trends
Topography
Climate - Answer -America's Got Talent
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.
T/F - Answer -True
The concepts of land are
Immobile, durable, finite, and useful
Legal, geographic and environmental, economic, and social.
Land, labor, capital, and entrepreneurialism
Leasehold, leased fee, and fee simple - Answer -Legal, geographic and environmental,
economic, and social
Land can be used for all of the following purposes except:
commerce
agriculture
industry
climate - Answer -Climate
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.
T/F - Answer -true
, In economics, land is regarded as one of the four agents of production, along with labor,
capital, and entrepreneurial coordination.
T/F - Answer -True
Markets reflect the attitudes and actions of people in response to social and economic
forces and the constraints of law and legal encumbrances.
T/F - Answer -True
Which of the following principles best describes the effect of an international airport on
the value of a nearby residential subdivision?
Externalities
Conformity
Highest and Best Use
Substitution - Answer -Externalities
A buyer invests in a small strip mall because she believes the property will net $25,000
per year. This is an example of
Competition
Anticipation
Substitution
Change - Answer -Anticipation
In real estate economic _____________ is achieved when the combination of land and
improvements is optimal - i.e., when no marginal benefit or utility is achieved by adding
another unit of capital..
Balance
Return
Diminished returns
Completion - Answer -Balance
The overproduction of new homes
Causes oversupply and lower prices
Causes prices to increase
Causes the market to move toward a state of equilibrium
Causes increases in demand - Answer -Causes oversupply and lower prices
The result of the cause and effect relationship among the forces that influence real
property value.
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
_________.
Finite assets
Personal property
Real property
Intangible assets - Answer -intangible assets
Movable items of property that are not permanently affixed to, or part of, the real estate
are considered to be __________.
Intangible assets
Finite assets
Personal property
Real property - Answer -personal property
An estate in land describes the ___________________ that a person has in the real
property.
Group of answer choices
inheritence
value
fee simple interest
degree, nature, or extent of interest - Answer -degree, nature, or extent of interest
An appraisal provides ....?
A person's determination of the minimum amount a property should sell for.
A person's opinion of real property value.
A persons' determination of the maximum amount a property should sell for in the
market.
A person's factual determination of a specific real property value. - Answer -A person's
opinion of real property value.
Which of the following is a market transaction where appraisals are used.
Property tax assessments
Purchase/Sale Financing
Eminent domain litigation
Divorce litigation - Answer -purchase/sale financing
,In appraisal, appraisers appraise...?
Real estate
Real estate and fixtures
Real property interests
Real estate and personal property - Answer -Real property interests
Items that have been installed or attached to the land or building in a permanent
manner are considered which of the following?
Finite assets
Personal property
Real property
Intangible assets - Answer -real property
Appraisals are used for all of the following except:
Appraisals provide unbiased and disinterested opinions of value.
Appraisals advise the public on everyday questions of value.
Appraisals provide a document that is capable of being reviewed by lenders.
Appraisals guarantee the market value of property to a lender. - Answer -Appraisals
guarantee the market value of property to a lender.
Which of the following is the best example of using an appraisal in litigation?
Develope feasibility of construction or renovation project.
Estimating damages created by violations of environmental laws.
Developing an opinion of fair value for financial reporting.
To establish a basis for real property exchange. - Answer -Estimating damages created
by violations of environmental laws.
Which of the following is the best example of using appraisals in investment
counseling?
Developing an opinion of fair value for financial reporting.
Devleoping an opinion of market value of real property offered as collateral for proposed
mortgage loan.
To establish a basis for real property exchange.
Developing an opinion of the market value of a property in contract disputes. - Answer -
Developing an opinion of fair value for financial reporting.
All of the following are attributes of land except:
Land is physically immobile
Land is durable
The supply if land is infinite
,Each parcel is unique - Answer -The supply if land is infinite
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.
T/F - Answer -True
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.
T/F - Answer -False
Land use decisions are influenced the least by which of the following factors:
America's Got Talent
Economic and population trends
Topography
Climate - Answer -America's Got Talent
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.
T/F - Answer -True
The concepts of land are
Immobile, durable, finite, and useful
Legal, geographic and environmental, economic, and social.
Land, labor, capital, and entrepreneurialism
Leasehold, leased fee, and fee simple - Answer -Legal, geographic and environmental,
economic, and social
Land can be used for all of the following purposes except:
commerce
agriculture
industry
climate - Answer -Climate
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.
T/F - Answer -true
, In economics, land is regarded as one of the four agents of production, along with labor,
capital, and entrepreneurial coordination.
T/F - Answer -True
Markets reflect the attitudes and actions of people in response to social and economic
forces and the constraints of law and legal encumbrances.
T/F - Answer -True
Which of the following principles best describes the effect of an international airport on
the value of a nearby residential subdivision?
Externalities
Conformity
Highest and Best Use
Substitution - Answer -Externalities
A buyer invests in a small strip mall because she believes the property will net $25,000
per year. This is an example of
Competition
Anticipation
Substitution
Change - Answer -Anticipation
In real estate economic _____________ is achieved when the combination of land and
improvements is optimal - i.e., when no marginal benefit or utility is achieved by adding
another unit of capital..
Balance
Return
Diminished returns
Completion - Answer -Balance
The overproduction of new homes
Causes oversupply and lower prices
Causes prices to increase
Causes the market to move toward a state of equilibrium
Causes increases in demand - Answer -Causes oversupply and lower prices
The result of the cause and effect relationship among the forces that influence real
property value.
