BASIC APPRAISAL PRINCIPLES TEST
STUDY QUESTIONS ANSWERED 2024
________ liens are liens placed on a property after a previous lien has been made and
recorded. - ANSWER-Junior
_____________ loans are assumable without the permission of the lender. - ANSWER-
FHA and VA
"A form of ownership in which each owner possesses the exclusive right to use and
occupy an allotted unit plus an undivided interest in common areas" is the definition of a
- ANSWER-condominium
"A market in which buyers have the advantage; exists when market prices are relatively
low due to an oversupply of property or reduced buyer demand" is the definition of a(n)
___________ market. - ANSWER-buyer's
"A market in which product differentiation exists, there is a lack of important product or
market information, and some of the producers and/or consumers are significant
enough to affect the price and quantity of goods by their actions alone" is the definition
of a(n) ____________ market. - ANSWER-imperfect
"A right or interest in property" is the definition of - ANSWER-Estate
"A tangible or intangible benefit of real property that enhances its attractiveness or
increases the satisfaction of the user" is the definition of - ANSWER-amenity
"A type of building development designed as a grouping of complementary land uses,
such as housing, schools, recreation, retail, office, and industrial parks, contained within
a single master development." is the definition of - ANSWER-PUD
"Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat" is the definition of - ANSWER-fee simple
"An active market in which the sellers of available properties can obtain higher prices
than those obtainable in the immediately preceding period; a market in which a few
available properties are demanded at prevailing prices by many users and potential
users" is the definition of a(n) __________ market. - ANSWER-seller's
"An easement that benefits a legal person or entity (individual, corporation, partnership,
LLC, government entity, etc.) and not a particular tract of land" is the definition of a(an) -
ANSWER-easement in gross
,"Damages awarded in a lawsuit as a punishment and example to others for malicious,
evil or particularly fraudulent acts" is the definition of _____________ damages. -
ANSWER-punitive
"In appraisal, the concept that the value of a superior property is adversely affected by
its association with an inferior property of the same type" is the definition of the principle
of - ANSWER-regression
"Metes" refers to __________ and "bounds" refers to _________. - ANSWER-bearing,
distance
"The ability of a property or building to be useful and to perform the function for which it
is intended according to current market tastes and standards; the efficiency of a
building's use in terms of architectural style, design and layout, traffic patterns, and the
size and type of rooms" is the definition of - ANSWER-functional utility
"The concept that successive increments of one or more agents of production added to
fixed amounts of the other agents will enhance income, in dollars, benefits, or
amenities, at an increasing rate until a maximum return is reached. Then, income will
decrease until the increment to value becomes increasingly less than the value of the
added agent or agents" is the definition of the principle o - ANSWER-increasing and
decreasing returns
"The concept that successive increments of one or more agents of production added to
fixed amounts of the other agents will enhance income, in dollars, benefits, or
amenities, at an increasing rate until a maximum return is reached. Then, income will
decrease until the increment to value becomes increasingly less than the value of the
added agent or agents" is the definition of the principle of - ANSWER-increasing and
decreasing returns
"The earth's surface, both land and water, and anything that is attached to it whether by
the course of nature or human hands" is the definition of - ANSWER-land
"The interaction of buyers and sellers trading long- or intermediate-term money
instruments" is the definition of the _____________ market. - ANSWER-Capital
"The principle that real property value is created and sustained when contrasting,
opposing, or interacting elements are in a state of equilibrium" is the definition of the
principle of - ANSWER-balance
"The result of the cause and effect relationship among the forces that influence real
property value" is the definition of the principle of - ANSWER-change
"The right to perform a specific action on a property owned by another" is the definition
of - ANSWER-Affirmative Easement
, "To finish, complete or perform as required, as in fulfilling one's obligations under a
contract or a court order" is the definition of - ANSWER-execute
A ________ contract is binding and enforceable on all parties. - ANSWER-valid
A certified residential appraiser needs ____ hours of continuing education per year to
renew his or her certification? - ANSWER-14
A client asks an appraiser to omit the client's identity from the appraisal report. What
can the appraiser do? - ANSWER-omit the client's identity from the report, but identify
the client in the workfile
A contract in which one party makes a promise in order to induce another party to do
something is a(n) __________________ contract. - ANSWER-bilateral
A farmer purchased a half-section for $456,000. How much did he pay for the property
per acre? - ANSWER-$1,425
A fee simple estate is NOT - ANSWER-between husband and wife only
A firm agreement to perform an act, refrain from acting or make a payment or delivery"
is the definition of a(n) - ANSWER-promise
A large good quality mansion is built in a market area where no one can afford to
purchase it. This demonstrates lack of - ANSWER-effective purchasing power
A law changed after the contract was arranged but before the full performance of the
contract. This would be an example of - ANSWER-impossibilty
A leasehold interest belongs to the - ANSWER-tenant
A licensed or certified appraiser must take the 7-hour USPAP Update course -
ANSWER-every 2 years
A lot contains 1.54 acres. It sells for $100,000. How much did it sell for per square foot?
- ANSWER-$ 1.49
A lot contains 5.62 acres. It sells for $225,000. How much did it sell for per acre? -
ANSWER-$ 40,036
A lot owner constructs a new 4,000 square foot home in a neighborhood of mostly 800
to 1,200 square foot homes. The value of the new 4,000 square foot home is diminished
by the smaller homes surrounding it. This is an example of which valuation principle? -
ANSWER-regression
A market is defined in terms of __________. - ANSWER-competition
STUDY QUESTIONS ANSWERED 2024
________ liens are liens placed on a property after a previous lien has been made and
recorded. - ANSWER-Junior
_____________ loans are assumable without the permission of the lender. - ANSWER-
FHA and VA
"A form of ownership in which each owner possesses the exclusive right to use and
occupy an allotted unit plus an undivided interest in common areas" is the definition of a
- ANSWER-condominium
"A market in which buyers have the advantage; exists when market prices are relatively
low due to an oversupply of property or reduced buyer demand" is the definition of a(n)
___________ market. - ANSWER-buyer's
"A market in which product differentiation exists, there is a lack of important product or
market information, and some of the producers and/or consumers are significant
enough to affect the price and quantity of goods by their actions alone" is the definition
of a(n) ____________ market. - ANSWER-imperfect
"A right or interest in property" is the definition of - ANSWER-Estate
"A tangible or intangible benefit of real property that enhances its attractiveness or
increases the satisfaction of the user" is the definition of - ANSWER-amenity
"A type of building development designed as a grouping of complementary land uses,
such as housing, schools, recreation, retail, office, and industrial parks, contained within
a single master development." is the definition of - ANSWER-PUD
"Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat" is the definition of - ANSWER-fee simple
"An active market in which the sellers of available properties can obtain higher prices
than those obtainable in the immediately preceding period; a market in which a few
available properties are demanded at prevailing prices by many users and potential
users" is the definition of a(n) __________ market. - ANSWER-seller's
"An easement that benefits a legal person or entity (individual, corporation, partnership,
LLC, government entity, etc.) and not a particular tract of land" is the definition of a(an) -
ANSWER-easement in gross
,"Damages awarded in a lawsuit as a punishment and example to others for malicious,
evil or particularly fraudulent acts" is the definition of _____________ damages. -
ANSWER-punitive
"In appraisal, the concept that the value of a superior property is adversely affected by
its association with an inferior property of the same type" is the definition of the principle
of - ANSWER-regression
"Metes" refers to __________ and "bounds" refers to _________. - ANSWER-bearing,
distance
"The ability of a property or building to be useful and to perform the function for which it
is intended according to current market tastes and standards; the efficiency of a
building's use in terms of architectural style, design and layout, traffic patterns, and the
size and type of rooms" is the definition of - ANSWER-functional utility
"The concept that successive increments of one or more agents of production added to
fixed amounts of the other agents will enhance income, in dollars, benefits, or
amenities, at an increasing rate until a maximum return is reached. Then, income will
decrease until the increment to value becomes increasingly less than the value of the
added agent or agents" is the definition of the principle o - ANSWER-increasing and
decreasing returns
"The concept that successive increments of one or more agents of production added to
fixed amounts of the other agents will enhance income, in dollars, benefits, or
amenities, at an increasing rate until a maximum return is reached. Then, income will
decrease until the increment to value becomes increasingly less than the value of the
added agent or agents" is the definition of the principle of - ANSWER-increasing and
decreasing returns
"The earth's surface, both land and water, and anything that is attached to it whether by
the course of nature or human hands" is the definition of - ANSWER-land
"The interaction of buyers and sellers trading long- or intermediate-term money
instruments" is the definition of the _____________ market. - ANSWER-Capital
"The principle that real property value is created and sustained when contrasting,
opposing, or interacting elements are in a state of equilibrium" is the definition of the
principle of - ANSWER-balance
"The result of the cause and effect relationship among the forces that influence real
property value" is the definition of the principle of - ANSWER-change
"The right to perform a specific action on a property owned by another" is the definition
of - ANSWER-Affirmative Easement
, "To finish, complete or perform as required, as in fulfilling one's obligations under a
contract or a court order" is the definition of - ANSWER-execute
A ________ contract is binding and enforceable on all parties. - ANSWER-valid
A certified residential appraiser needs ____ hours of continuing education per year to
renew his or her certification? - ANSWER-14
A client asks an appraiser to omit the client's identity from the appraisal report. What
can the appraiser do? - ANSWER-omit the client's identity from the report, but identify
the client in the workfile
A contract in which one party makes a promise in order to induce another party to do
something is a(n) __________________ contract. - ANSWER-bilateral
A farmer purchased a half-section for $456,000. How much did he pay for the property
per acre? - ANSWER-$1,425
A fee simple estate is NOT - ANSWER-between husband and wife only
A firm agreement to perform an act, refrain from acting or make a payment or delivery"
is the definition of a(n) - ANSWER-promise
A large good quality mansion is built in a market area where no one can afford to
purchase it. This demonstrates lack of - ANSWER-effective purchasing power
A law changed after the contract was arranged but before the full performance of the
contract. This would be an example of - ANSWER-impossibilty
A leasehold interest belongs to the - ANSWER-tenant
A licensed or certified appraiser must take the 7-hour USPAP Update course -
ANSWER-every 2 years
A lot contains 1.54 acres. It sells for $100,000. How much did it sell for per square foot?
- ANSWER-$ 1.49
A lot contains 5.62 acres. It sells for $225,000. How much did it sell for per acre? -
ANSWER-$ 40,036
A lot owner constructs a new 4,000 square foot home in a neighborhood of mostly 800
to 1,200 square foot homes. The value of the new 4,000 square foot home is diminished
by the smaller homes surrounding it. This is an example of which valuation principle? -
ANSWER-regression
A market is defined in terms of __________. - ANSWER-competition
