Ch 1 : Characteristics Of Property And Value

15 Questions | Total Attempts: 37

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Ch 1 : Characteristics Of Property And Value

Influences on real estate value and the legal considerations in appraisal


Questions and Answers
  • 1. 
    Property is best defined as:
    • A. 

      Real estate

    • B. 

      Real property

    • C. 

      Personal property

    • D. 

      Anything capable of being owned and gained lawfully

  • 2. 
    Which of these is considered real property?
    • A. 

      Cut timber

    • B. 

      Airspace

    • C. 

      Trade fixtures

    • D. 

      Jewelry

  • 3. 
    Which of the following is not one of the tests of a fixture?
    • A. 

      Method of attachment

    • B. 

      Time of attachment

    • C. 

      Adaptability of the item

    • D. 

      Relationship of the parties

  • 4. 
    Tenant Bob installs a ceiling fan. Bob informs landlord Pat that he will re-install the old fixture when he moves. Of the five tests of a fixture, this is an example of:
    • A. 

      Intention

    • B. 

      Attachment

    • C. 

      Relationship

    • D. 

      Adaptation

  • 5. 
    In legal terms, _______________ is a general term for various legal rights, which attach to certain types of information, ideas, or other intangibles.
    • A. 

      Intellectual property

    • B. 

      Industrial property

    • C. 

      Chattel fixtures

    • D. 

      Personal property

  • 6. 
    The primary difference between condemnation through exercise of the power of eminent domain and condemnation through the exercise of police power is:
    • A. 

      There is no compensation necessary in the exercise of eminent domain.

    • B. 

      There is no payment involved in condemnation under police power.

    • C. 

      One is a power of the public body, and the other is not.

    • D. 

      There is no difference.

  • 7. 
    In most cases, when there is a conflict between a public (governmental) restriction on a property and a private deed restriction, which one must be adhered to?
    • A. 

      The public or governmental restriction

    • B. 

      The private deed restrictions

    • C. 

      The one that is most restrictive

    • D. 

      The one that is least restrictive

  • 8. 
    Privately owned real property in most states is subject to real estate taxation. Exempt properties may include:
    • A. 

      Churches.

    • B. 

      Schools.

    • C. 

      Non-profit organizations.

    • D. 

      All of the above.

  • 9. 
    For an appraiser, value is:
    • A. 

      Always a fact, never an opinion.

    • B. 

      Not a fact, it is a qualified opinion.

    • C. 

      Based on fact and is an unbiased opinion.

    • D. 

      Neither a fact nor an opinion.

  • 10. 
    Price is the amount asked, offered, or paid for a property. Once stated, price:
    • A. 

      Must be disclosed publicly.

    • B. 

      Is relevant only to the buyer and seller.

    • C. 

      It a fact, whether it is publicly disclosed or retained in private.

    • D. 

      Is not related to value.

  • 11. 
    The value of real property is best measured by:
    • A. 

      Demand, depreciation, scarcity, and utility.

    • B. 

      Cost, demand, transferability, and utility.

    • C. 

      Cost, feasibility, utility, and scarcity.

    • D. 

      Demand, utility, scarcity, and transferability.

  • 12. 
    The ultimate test of functional utility is:
    • A. 

      Design.

    • B. 

      Marketability.

    • C. 

      Utility.

    • D. 

      Maintenance costs.

  • 13. 
    According to the USPAP, the most probably price that a property should bring in a competitive and open market under all conditions requisite to a fair sale is known as:
    • A. 

      Market value.

    • B. 

      Marketability.

    • C. 

      Market price.

    • D. 

      Market stability.

  • 14. 
    A sale that is characterized as an arm's-length transaction is a sale:
    • A. 

      Between related parties.

    • B. 

      In which all involved parties act in their own self-interest.

    • C. 

      In which either the buyer or seller is acting under duress.

    • D. 

      That includes creative financing or sales concessions.

  • 15. 
    As used in appraisal agreements, investment value is not market value, but is value to a(n):
    • A. 

      Individual.

    • B. 

      Appraiser.

    • C. 

      Assessor.

    • D. 

      Broker.

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