Finance 5770 Midterm 1 Questions and
Answers Grade A+ 2023
Income Sources - -1. Earned - Wages (Most Taxed)
2. Portfolio - Stocks/Bonds
3. Passive - Real Estate (Least Taxed)
-Real Estate Types - -1. Owner Occupancy - Live in (Less Risk)
2. Investment - Income
3. Speculation - Appreciation (More Risk)
-Appraisal Profession - -1. The Appraisal Foundation (TAF)
2. Appraisal Qualifications Board (AQB)
3. Appraisal Standards Board (ASB)
-Professional Designations of Appraisers - -MAI - Commercial
SRA - Residential
AI-GRS - Appraisal Review Commercial
AI-RRS - Appraisal Review Residential
-License types - -1. Trainee, Registered or Associate
2. Licensed Residential (LR)
3. Certified Residential (CR)
4. Certified General (CG)
-USPAP - -Uniform Standards of Professional Appraisal Practice
-Valuation Process - -1. Identification of the Problem
2. Scope of Work Determination
3. Data Collection and Property Description
4. Data Analysis
5. Land Value Opinion
6. Application of the Approaches to Value
7. Reconciliation of Value Indications and Final Opinion of Value
8. Report of Defined Value
-Real Estate - -Tangible sticks and bricks
-Real Property (Property Rights) - -rights (ownership) of physical Real Estate
-Fee Simple Interest - -An ownership interest unencumbered by any other interest or estate
-Leased Fee - -interest is the owner or landlord's interest
, -Leasehold Estate - -A tenant's right to occupy real estate during the term of a lease, generally
considered to be a personal property interest.
-Acre - -A measure of land equal to 43,560 square feet.
-1031 Exchange - -Way to defer capital gains tax; property owner must re-invest profits from the
sale of an investment property into another investment property within 6 months
-Four Powers of the Government - -1. Taxation - Property Taxes
2. Eminent Domain - Condemnation
3. Police Power - Zoning
4. Escheat - Death of Owner with no Heirs
-Real Property - -physical property such as land and buildings
-Personal Property - -Moveable items
-Intangible Assets - -long-term assets (e.g., patents, trademarks, copyrights) that have no real
physical form but do have value
-Fixture - -An item of personal property that has been converted to real property by being
permanently affixed to the realty.
-Test for a Fixture - -1. Manner of Attachment - How its affixed
2. Adaptation - Character of Item
3. Intent - Of Party who Attached Item
4. Mutual Agreement - Agreement of both parties
-Trade Fixtures (Chattel) - -Are personal property regardless of how they are affixed
-Types of Real Estate Assets - -1. Residential
2. Commercial
3. Agricultural
4. Industrial
5. Special Use - Schools, Airports, Theme Parks
-Types of Values - -1. Market - No Abnormal Influences
2. Use - Specific Use (Pharmaceutical)
3. Investment - Specific investor and Returns
4. Assessed - Aids in property tax assessments
5. Business - intangible assets
-Appraisers Clients Served - -Attorneys
Lenders
Private Individuals
Developers/Builders
Answers Grade A+ 2023
Income Sources - -1. Earned - Wages (Most Taxed)
2. Portfolio - Stocks/Bonds
3. Passive - Real Estate (Least Taxed)
-Real Estate Types - -1. Owner Occupancy - Live in (Less Risk)
2. Investment - Income
3. Speculation - Appreciation (More Risk)
-Appraisal Profession - -1. The Appraisal Foundation (TAF)
2. Appraisal Qualifications Board (AQB)
3. Appraisal Standards Board (ASB)
-Professional Designations of Appraisers - -MAI - Commercial
SRA - Residential
AI-GRS - Appraisal Review Commercial
AI-RRS - Appraisal Review Residential
-License types - -1. Trainee, Registered or Associate
2. Licensed Residential (LR)
3. Certified Residential (CR)
4. Certified General (CG)
-USPAP - -Uniform Standards of Professional Appraisal Practice
-Valuation Process - -1. Identification of the Problem
2. Scope of Work Determination
3. Data Collection and Property Description
4. Data Analysis
5. Land Value Opinion
6. Application of the Approaches to Value
7. Reconciliation of Value Indications and Final Opinion of Value
8. Report of Defined Value
-Real Estate - -Tangible sticks and bricks
-Real Property (Property Rights) - -rights (ownership) of physical Real Estate
-Fee Simple Interest - -An ownership interest unencumbered by any other interest or estate
-Leased Fee - -interest is the owner or landlord's interest
, -Leasehold Estate - -A tenant's right to occupy real estate during the term of a lease, generally
considered to be a personal property interest.
-Acre - -A measure of land equal to 43,560 square feet.
-1031 Exchange - -Way to defer capital gains tax; property owner must re-invest profits from the
sale of an investment property into another investment property within 6 months
-Four Powers of the Government - -1. Taxation - Property Taxes
2. Eminent Domain - Condemnation
3. Police Power - Zoning
4. Escheat - Death of Owner with no Heirs
-Real Property - -physical property such as land and buildings
-Personal Property - -Moveable items
-Intangible Assets - -long-term assets (e.g., patents, trademarks, copyrights) that have no real
physical form but do have value
-Fixture - -An item of personal property that has been converted to real property by being
permanently affixed to the realty.
-Test for a Fixture - -1. Manner of Attachment - How its affixed
2. Adaptation - Character of Item
3. Intent - Of Party who Attached Item
4. Mutual Agreement - Agreement of both parties
-Trade Fixtures (Chattel) - -Are personal property regardless of how they are affixed
-Types of Real Estate Assets - -1. Residential
2. Commercial
3. Agricultural
4. Industrial
5. Special Use - Schools, Airports, Theme Parks
-Types of Values - -1. Market - No Abnormal Influences
2. Use - Specific Use (Pharmaceutical)
3. Investment - Specific investor and Returns
4. Assessed - Aids in property tax assessments
5. Business - intangible assets
-Appraisers Clients Served - -Attorneys
Lenders
Private Individuals
Developers/Builders
