Certified General Appraiser Exam
Questions With Complete Solutions
hypothetical condition - Answer-a condition, directly related to a specific assignment,
which is contrary to what is KNOWN by the appraiser to exist on the effective date of
the assignment results, but is used for the purpose of analysis.
/.Extraordinary Assumption - Answer-something that is BELIEVED to be True for the
sake of the Appraisal... but may or may not be True as of the Effective Date of the
Appraisal.
/.Appraisal - Answer-the act or process of developing an opinion of value
/.Marketing Period - Answer-Time Period required to actually sell the property once the
decision to sell is made. Time necessary to close a sale.
/.Exposure Time - Answer-the time period assumed to have occurred prior to the date of
the appraisal
/.Attributes of Land - Answer-unique in location and composition, physical immobile,
durable, finite, and useful
/.Four Powers of Government - Answer-1. Police Power
2. Eminent Domain
3. Taxation
4. Escheat
(PETE)
/.Police Power - Answer-zoning, health codes, building codes, traffic, environmental
regulations, air
/.Eminent Domain - Answer-the RIGHT of government to take private property for public
use
/.Condemnation - Answer-The PROCESS of exercising eminent domain through court
action.
/.Concepts of Land - Answer-geographic and environmental, legal, economic, social
/.Forces that Influence Real Estate - Answer-Social, Economic, Governmental,
Environmental (SEGE)/
,/.Agents of Production - Answer-Land, Labor, Capital, Entrepreneurial Coordination
(LLCEC)
/.Factors of Value - Answer-utility, scarcity, desire, effective purchasing power (USDE)
/.Valuation Process - Answer-1.Definition of Problem
2. Scope of Work
3. Data Collection and Property Description
4. Data Analysis (HBU and Market Analysis)
5. Land Value Estimate
6. Three Approaches to Value
7. Reconciliation
8. Report
/.Going Concern Value - Answer-The value of an established business including the
value of real property and goodwill generated through business operations. Includes
Real, Personal, and Intangibles.
/.Investment Value - Answer-The value of the property to a particular investor, based on
his or her specific requirements, discount rate, expectations, and so on.
/.Substitution - Answer-when several similar or commensurate things are available the
lowest price will attract the greatest demand and widest distribution.
/.Individual Ownership - Answer-sole proprietorship
/.General Partnership - Answer-partnership in which partners share equally in both
responsibility and liability
/.Limited Partnership (LP) - Answer-A partnership consisting of one or more general
partners and one or more limited partners. General partner is liable and limited partners
are to the extent of their initial investment
/.Tenant in Common - Answer-A form of ownership where two or more people hold title
on the same property. Each person's interest is held in severalty and each person
retains the right to will away their interest.
/.Joint Tenancy - Answer-The joint ownership of property by two or more co-owners in
which each co-owner owns an undivided portion of the property. On the death of one of
the joint tenants, his or her interest automatically passes to the surviving joint tenants.
/.Corporation - Answer-
/.Condominium Ownership - Answer-A form of ownership for units in a multiple-family
complex. Each person owns his or her own unit and shares ownership of common
areas such as hallways and grounds.
, /.Tenancy by the Entirety - Answer-The joint ownership, recognized in some states, of
property acquired by husband and wife during marriage. Upon the death of one spouse,
the survivor becomes the owner of the property.
/.Book Value - Answer-the capital amount at which the property is shown on the account
books of the corporation.
/.Cooperative Ownership - Answer-Investor resident acquires stock in the corporation
owning the facility and receives a permanent lease on one unit of the facility
/.Timesharing - Answer-Property occupancy arrangement in which multiple individuals
have use of property but, unlike traditional forms of co-ownership, the interests are at
different time intervals rather than simultaneous. A timesharing arrangement may
involve true co-ownership, leasehold interests (fee timesharing), or simply permission to
occupy (i.e., license).
/.Escheat - Answer-The state takes property upon an owners death if there is no will &
no heirs exist. If their is no will it automatically goes to heirs, but if there is also no heirs
then it goes to the state.
/.Party Wall - Answer-A wall that is located on or at a boundary line between two
adjoining parcels of land and is used or is intended to be used by the owners of both
properties.
/.Taxation - Answer-The right of government to raise revenue through assessments on
valuable goods, products, and rights
/.Examples of Governmental Forces - Answer-public services, zoning, building codes,
health codes,
/.Examples of Legal Forces - Answer-easements, use restrictions, access regulations,
recording and conveyance of titles
/.Examples of Economic Forces - Answer-employment, wage levels, economic base,
mortgage credits, occupancy rates, construction costs, rental prices.
/.Real Estate - Answer-the physical land and anything fixed to it
/.Real Property - Answer-The RIGHTS of ownership (you can not see real property).
/.Personal Property - Answer-moveable and tangible property
/.Fixture - Answer-was once personal but is now part of the real estate.
Questions With Complete Solutions
hypothetical condition - Answer-a condition, directly related to a specific assignment,
which is contrary to what is KNOWN by the appraiser to exist on the effective date of
the assignment results, but is used for the purpose of analysis.
/.Extraordinary Assumption - Answer-something that is BELIEVED to be True for the
sake of the Appraisal... but may or may not be True as of the Effective Date of the
Appraisal.
/.Appraisal - Answer-the act or process of developing an opinion of value
/.Marketing Period - Answer-Time Period required to actually sell the property once the
decision to sell is made. Time necessary to close a sale.
/.Exposure Time - Answer-the time period assumed to have occurred prior to the date of
the appraisal
/.Attributes of Land - Answer-unique in location and composition, physical immobile,
durable, finite, and useful
/.Four Powers of Government - Answer-1. Police Power
2. Eminent Domain
3. Taxation
4. Escheat
(PETE)
/.Police Power - Answer-zoning, health codes, building codes, traffic, environmental
regulations, air
/.Eminent Domain - Answer-the RIGHT of government to take private property for public
use
/.Condemnation - Answer-The PROCESS of exercising eminent domain through court
action.
/.Concepts of Land - Answer-geographic and environmental, legal, economic, social
/.Forces that Influence Real Estate - Answer-Social, Economic, Governmental,
Environmental (SEGE)/
,/.Agents of Production - Answer-Land, Labor, Capital, Entrepreneurial Coordination
(LLCEC)
/.Factors of Value - Answer-utility, scarcity, desire, effective purchasing power (USDE)
/.Valuation Process - Answer-1.Definition of Problem
2. Scope of Work
3. Data Collection and Property Description
4. Data Analysis (HBU and Market Analysis)
5. Land Value Estimate
6. Three Approaches to Value
7. Reconciliation
8. Report
/.Going Concern Value - Answer-The value of an established business including the
value of real property and goodwill generated through business operations. Includes
Real, Personal, and Intangibles.
/.Investment Value - Answer-The value of the property to a particular investor, based on
his or her specific requirements, discount rate, expectations, and so on.
/.Substitution - Answer-when several similar or commensurate things are available the
lowest price will attract the greatest demand and widest distribution.
/.Individual Ownership - Answer-sole proprietorship
/.General Partnership - Answer-partnership in which partners share equally in both
responsibility and liability
/.Limited Partnership (LP) - Answer-A partnership consisting of one or more general
partners and one or more limited partners. General partner is liable and limited partners
are to the extent of their initial investment
/.Tenant in Common - Answer-A form of ownership where two or more people hold title
on the same property. Each person's interest is held in severalty and each person
retains the right to will away their interest.
/.Joint Tenancy - Answer-The joint ownership of property by two or more co-owners in
which each co-owner owns an undivided portion of the property. On the death of one of
the joint tenants, his or her interest automatically passes to the surviving joint tenants.
/.Corporation - Answer-
/.Condominium Ownership - Answer-A form of ownership for units in a multiple-family
complex. Each person owns his or her own unit and shares ownership of common
areas such as hallways and grounds.
, /.Tenancy by the Entirety - Answer-The joint ownership, recognized in some states, of
property acquired by husband and wife during marriage. Upon the death of one spouse,
the survivor becomes the owner of the property.
/.Book Value - Answer-the capital amount at which the property is shown on the account
books of the corporation.
/.Cooperative Ownership - Answer-Investor resident acquires stock in the corporation
owning the facility and receives a permanent lease on one unit of the facility
/.Timesharing - Answer-Property occupancy arrangement in which multiple individuals
have use of property but, unlike traditional forms of co-ownership, the interests are at
different time intervals rather than simultaneous. A timesharing arrangement may
involve true co-ownership, leasehold interests (fee timesharing), or simply permission to
occupy (i.e., license).
/.Escheat - Answer-The state takes property upon an owners death if there is no will &
no heirs exist. If their is no will it automatically goes to heirs, but if there is also no heirs
then it goes to the state.
/.Party Wall - Answer-A wall that is located on or at a boundary line between two
adjoining parcels of land and is used or is intended to be used by the owners of both
properties.
/.Taxation - Answer-The right of government to raise revenue through assessments on
valuable goods, products, and rights
/.Examples of Governmental Forces - Answer-public services, zoning, building codes,
health codes,
/.Examples of Legal Forces - Answer-easements, use restrictions, access regulations,
recording and conveyance of titles
/.Examples of Economic Forces - Answer-employment, wage levels, economic base,
mortgage credits, occupancy rates, construction costs, rental prices.
/.Real Estate - Answer-the physical land and anything fixed to it
/.Real Property - Answer-The RIGHTS of ownership (you can not see real property).
/.Personal Property - Answer-moveable and tangible property
/.Fixture - Answer-was once personal but is now part of the real estate.
